Document:

Exhibit
10.4

 

REGISTRATION
RIGHTS AGREEMENT

 

This Registration
Rights Agreement (this “Agreement”) is made and entered into as of August 14,
2003, by and between Artemis International Solutions Corp., a Delaware
corporation (the “Company”), and Laurus Master Fund, Ltd. (the “Purchaser”).

 

This Agreement is
made pursuant to the Security Agreement, dated as of the date hereof, between
the Purchaser and the Company (the “Purchase Agreement”), and pursuant to the
Notes, Warrant and the Additional Warrants (as defined in the Warrant).

 

The Company and
the Purchaser hereby agree as follows:

 

1.               Definitions.  Capitalized terms used and not otherwise
defined herein that are defined in the Purchase Agreement shall have the
meanings given such terms in the Purchase Agreement.  As used in this Agreement, the following terms shall have the
following meanings:

 

“Effectiveness Date” means the 90th day
following the Filing Date.

 

“Effectiveness Period” shall have the meaning
set forth in Section 2(a).

 

“Filing Date” means, with respect to the
Registration Statement required to be filed hereunder, no later than September
  ,  2003.

 

“Holder” or “Holders” means the Purchaser or any of
its affiliates or transferees to the extent any of them hold Registrable
Securities.

 

“Indemnified Party” shall have the meaning set
forth in Section 5(c).

 

“Indemnifying Party” shall have the meaning set
forth in Section 5(c).

 

“Losses” shall
have the meaning set forth in Section 5(a).

 

“Notes” means the
convertible promissory note issued on the date hereof.

 

“Proceeding” means
an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition),
whether commenced or threatened.

 

“Prospectus” means
the prospectus included in a Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from
a prospectus filed as part of an effective registration statement in reliance
upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by the
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

 

 

“Registrable Securities”
means the shares of Common Stock issued upon the conversion of to the Notes and
issuable upon exercise of the Warrant and the Additional Warrants (as such term
is defined in the Warrant) .

 

“Registration Statement”
means the registration statement required to be filed hereunder, including the
Prospectus, amendments and supplements to such registration statement or
Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference or deemed to be incorporated by
reference in such registration statement.

 

“Rule 144” means
Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as
such Rule.

 

“Rule 415” means
Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as
such Rule.

 

“Rule 424” means
Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as
such Rule.

 

“Warrant” means
the Common Stock purchase warrant issued pursuant to the Purchase Agreement.

 

2.     Registration.

 

(a)   On or prior to the Filing Date, the Company
shall prepare and file with the Commission a Registration Statement covering
the Registrable Securities for an offering to be made on a continuous basis
pursuant to Rule 415.  The Registration
Statement shall be on Form S-1 (except if the Company is not then eligible to
register for resale the Registrable Securities on Form S-1, in which case such
registration shall be on another appropriate form in accordance herewith).  The Company shall cause the Registration
Statement to become effective and remain effective as provided herein.  The Company shall use its reasonable
commercial efforts to cause the Registration Statement to be declared effective
under the Securities Act as promptly as possible after the filing thereof, and
shall keep the Registration Statement continuously effective under the
Securities Act until the date which is the earlier date of when (i) all
Registrable Securities have been sold or (ii) all Registrable Securities may be
sold immediately without registration under the Securities Act and without
volume restrictions pursuant to Rule 144(k), as determined by the counsel to
the Company pursuant to a written opinion letter to such effect, addressed and
acceptable to the Company’s transfer agent and the affected Holders (the
“Effectiveness Period”).

 

(b)   If: (i) any Registration Statement is not
filed on or prior to the Filing Date; (ii) a Registration Statement filed hereunder
is not declared effective by the Commission by the Effectiveness Date; (iii)
after a Registration Statement is filed with and declared effective by the
Commission, such Registration Statement ceases to be effective (by suspension
or otherwise) as to all Registrable Securities to which it is required to
relate at any time prior to the expiration of

 

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the Effectiveness Period
(without being succeeded immediately by an additional registration statement
filed and declared effective) for a period of time which shall exceed 30 days
in the aggregate per year or more than 20 consecutive calendar days (defined as
a period of 365 days commencing on the date the Registration Statement is
declared effective); or (iv) the Common Stock is not listed or quoted, or is
suspended from trading on any Trading Market 
for a period of three (3) consecutive Trading Days (provided the Company
shall not have been able to cure such trading suspension within 30 days of the
notice thereof or list the Common Stock on any of the NASD OTC Bulletin Board,
BBX Exchange, NASDAQ SmallCap Market, the Nasdaq National Market, American
Stock Exchange or New York Stock Exchange (the “Trading Market”))(any such
failure or breach being referred to as an “Event,” and for purposes of clause
(i), (ii) or (v) the date on which such Event occurs, or for purposes of clause
(iii) the date which such 30 day or 20 consecutive day period (as the case may
be) is exceeded, or for purposes of clause (iv) the date on which such three
(3) Trading Day period is exceeded, being referred to as “Event Date”), then
until the applicable Event is cured, the Company shall pay to each Holder an
amount in cash, as liquidated damages and not as a penalty, equal to 2.0% for
each thirty (30) day period (prorated for partial periods) on a daily basis of
the original principal amount of the Note. 
Such liquidation damages shall be paid not less than each thirty (30)
days during an Event and within three (3) days following the date on which such
Event has been cured by the Company.

 

3.     Registration Procedures.  If and whenever the Company is required by
the provisions hereof to effect the registration of the Registrable Securities
under the Act, the Company will, as expeditiously as possible:

 

(a)   prepare and file with the SEC a registration
statement with respect to such securities, promptly as possible respond to any
comments received from the SEC and use its best efforts to cause such
registration statement to become and remain effective for the period of the
distribution contemplated thereby (determined as herein provided), and promptly
provide to the Purchaser copies of all filings and SEC letters of comment;

 

(b)   prepare and file with the SEC such amendments
and supplements to such registration statement and the prospectus used in
connection therewith as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by the
registration statement and to keep such registration statement effective until
the earlier of: (i) six months after the latest exercise period of the Warrant
or the Additional Warrants (as defined in the Warrant); (ii) four years after
the Closing Date, or (iii) the date on which the Purchaser has disposed of all
of the Registrable Securities covered by such registration statement in
accordance with the Purchaser’s intended method of disposition set forth in
such registration statement for such period;

 

(c)   furnish to the Purchaser such number of
copies of the registration statement and the prospectus included therein
(including each preliminary prospectus) as the Purchaser reasonably may request
to facilitate the public sale or disposition of the securities covered by such
registration statement;

 

(d)   use its commercially reasonable  efforts to register or qualify the
Purchaser’s Registrable Securities covered by such registration statement under
the securities or “blue sky” laws of such jurisdictions as the Purchaser,
provided, however, that the Company

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shall not for any such
purpose be required to qualify generally to transact business as a foreign
corporation in any jurisdiction where it is not so qualified or to consent to
general service of process in any such jurisdiction;

 

(e)   list the Registrable Securities covered by
such registration statement with any securities exchange on which the Common
Stock of the Company is then listed;

 

(f)    immediately notify the Purchaser at any time
when a prospectus relating thereto is required to be delivered under the
Securities Act, of the happening of any event of which the Company has
knowledge as a result of which the prospectus contained in such registration
statement, as then in effect, includes an untrue statement of a material fact
or omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing; and

 

(g)   make available for inspection by the
Purchaser and any attorney, accountant or other agent retained by the
Purchaser, all publicly available, non-confidential financial and other
records, pertinent corporate documents and properties of the Company, and cause
the Company’s officers, directors and employees to supply all publicly
available, non-confidential information reasonably requested by the attorney,
accountant or agent of the Purchaser.

 

4.     Registration Expenses.  All expenses relating to the Company’s
compliance with Sections 2 and 3 hereof, including, without limitation, all
registration and filing fees, printing expenses, fees and disbursements of
counsel and independent public accountants for the Company, fees and expenses
(including reasonable counsel fees) incurred in connection with complying with
state securities or “blue sky” laws, fees of the NASD, transfer taxes, fees of
transfer agents and registrars, fees of, and disbursements incurred by, one
counsel for the Holders, and costs of insurance are called “Registration
Expenses”. All selling commissions applicable to the sale of Registrable
Securities, including any fees and disbursements of any special counsel to the
Holders beyond those included in Registration Expenses, are called “Selling
Expenses.”   The Company shall be
responsible for all Registration Expenses.

 

5.     Indemnification.

 

(a)   In the event of a registration of any
Registrable Securities under the Securities Act pursuant to this Agreement, the
Company will indemnify and hold harmless the Purchaser, and its officers,
directors and each other person, if any, who controls the Purchaser within the
meaning of the Securities Act, against any losses, claims, damages or
liabilities, joint or several, to which the Purchaser, or such persons may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material
fact contained in any registration statement under which such Registrable
Securities were registered under the Securities Act pursuant to this Agreement,
any preliminary prospectus or final prospectus contained therein, or any
amendment or supplement thereof, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and will
reimburse the Purchaser, and each such person for any reasonable legal or other
expenses incurred by them in

 

4

 

connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case if and
to the extent that any such loss, claim, damage or liability arises out of or
is based upon an untrue statement or alleged untrue statement or omission or
alleged omission so made in conformity with information furnished by the
Purchaser or any such person in writing specifically for use in any such
document.

 

(b)   In the event of a registration of the
Registrable Securities under the Securities Act pursuant to this Agreement, the
Purchaser will indemnify and hold harmless the Company, and its officers,
directors and each other person, if any, who controls the Company within the
meaning of the Securities Act, against all losses, claims, damages or
liabilities, joint or several, to which the Company or such persons may become
subject under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are
based upon any untrue statement or alleged untrue statement of any material
fact which was furnished in writing by the Purchaser to the Company expressly
for use in (and such information is contained in) the registration statement
under which such Registrable Securities were registered under the Securities
Act pursuant to this Agreement, any preliminary prospectus or final prospectus
contained therein, or any amendment or supplement thereof, or arise out of or
are based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, and will reimburse the Company and each such person for any
reasonable legal or other expenses incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action,
provided, however, that the Purchaser will be liable in any such case if and
only to the extent that any such loss, claim, damage or liability arises out of
or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission so made in conformity with information furnished in writing to
the Company by the Purchaser specifically for use in any such document.  Notwithstanding the provisions of this
paragraph, the Purchaser shall not be required to indemnify any person or
entity in excess of the amount of the aggregate net proceeds received by the
Purchaser of Registrable Securities in connection with any such registration
under the Securities Act.

 

(c)   Promptly after receipt by an indemnified
party hereunder of notice of the commencement of any action, such indemnified
party shall, if a claim in respect thereof is to be made against the
indemnifying party hereunder, notify the indemnifying party in writing thereof,
but the omission so to notify the indemnifying party shall not relieve it from
any liability which it may have to such indemnified party other than under this
Section 5(c) and shall only relieve it from any liability which it may have to
such indemnified party under this Section 5(c) if and to the extent the
indemnifying party is prejudiced by such omission. In case any such action
shall be brought against any indemnified party and it shall notify the
indemnifying party of the commencement thereof, the indemnifying party shall be
entitled to participate in and, to the extent it shall wish, to assume and
undertake the defense thereof with counsel satisfactory to such indemnified
party, and, after notice from the indemnifying party to such indemnified party
of its election so to assume and undertake the defense thereof, the
indemnifying party shall not be liable to such indemnified party under this
Section 5(c) for any legal expenses subsequently incurred by such indemnified
party in connection with the defense thereof; if the indemnified party retains
its own counsel, then the indemnified party shall pay all fees, costs and
expenses of such counsel, provided, however, that, if the defendants in any
such action include both the

 

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indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there may be reasonable defenses available to it which are different from
or additional to those available to the indemnifying party or if the interests
of the indemnified party reasonably may be deemed to conflict with the
interests of the indemnifying party, the indemnified parties shall have the
right to select one separate counsel and to assume such legal defenses and
otherwise to participate in the defense of such action, with the reasonable
expenses and fees of such separate counsel and other expenses related to such
participation to be reimbursed by the indemnifying party as incurred.

 

(d)   In order to provide for just and equitable
contribution in the event of joint liability under the Securities Act in any
case in which either (i) the Purchaser, or any controlling person of the Purchaser,
makes a claim for indemnification pursuant to this Section 5(c) but it is
judicially determined (by the entry of a final judgment or decree by a court of
competent jurisdiction and the expiration of time to appeal or the denial of
the last right of appeal) that such indemnification may not be enforced in such
case notwithstanding the fact that this Section 5(c) provides for
indemnification in such case, or (ii) contribution under the Securities Act may
be required on the part of the Purchaser or controlling person of the Purchaser
in circumstances for which indemnification is provided under this Section 5(c);
then, and in each such case, the Company and the Purchaser will contribute to
the aggregate losses, claims, damages or liabilities to which they may be
subject (after contribution from others) in such proportion so that the
Purchaser is responsible only for the portion represented by the percentage
that the public offering price of its securities offered by the registration
statement bears to the public offering price of all securities offered by such
registration statement, provided, however, that, in any such case, (A) the
Purchaser will not be required to contribute any amount in excess of the public
offering price of all such securities offered by it pursuant to such
registration statement; and (B) no person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 10(f) of the Act) will be
entitled to contribution from any person or entity who was not guilty of such
fraudulent misrepresentation.

 

6.     Representations and Warranties.

 

(a)   The Common Stock of the Company is registered
pursuant to Section 12(b) or 12(g) of the Exchange Act and the Company has
timely filed all proxy statements, reports, schedules, forms, statements and
other documents required to be filed by it under the Exchange Act.  The Company has filed (i) its Annual Report
on Form 10-K for the fiscal year ended December 31, 2002 and (ii) its Quarterly
Report on Form 10-Q for the fiscal quarter ended March 31, 2003 (collectively,
the “SEC Reports”).  Each SEC Report
was, at the time of its filing, in substantial compliance with the requirements
of its respective form and none of the SEC Reports, nor the financial statements
(and the notes thereto) included in the SEC Reports, as of their respective
filing dates, contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.  The financial
statements of the Company included in the SEC Reports comply as to form in all
material respects with applicable accounting requirements and the published
rules and regulations of the Commission or other applicable rules and
regulations with respect thereto.  Such
financial statements have been prepared in accordance with generally accepted
accounting principles (“GAAP”) applied on a consistent basis during the periods
involved (except (i) as may be

 

6

 

otherwise indicated in
such financial statements or the notes thereto or (ii) in the case of unaudited
interim statements, to the extent they may not include footnotes or may be
condensed) and fairly present in all material respects the financial condition,
the results of operations and the cash flows of the Company and its
subsidiaries, on a consolidated basis, as of, and for, the periods presented in
each such SEC Report.

 

(b)   The Company Common Stock is listed for
trading on the OTCBB and satisfies all requirements for the continuation of
such listing.  The Company has not
received any notice that its Common Stock will be delisted from the OTCBB or
that the Common Stock does not meet all requirements for the continuation of
such listing.

 

(c)   Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has directly or
indirectly made any offers or sales of any security or solicited any offers to
buy any security under circumstances that would cause the offering of the
Securities pursuant to this Agreement to be integrated with prior offerings by
the Company for purposes of the Securities Act which would prevent the Company
from selling the Common Stock pursuant to Rule 506 under the Securities Act, or
any applicable exchange-related stockholder approval provisions.  Nor will the Company or any of its
affiliates or subsidiaries take any action or steps that would cause the
offering of the Securities to be integrated with other offerings.

 

(d)   The Registrable Securities are restricted
securities under the Securities Act as of the date of this Agreement.  The Company will not issue any stop transfer
order or other order impeding the sale and delivery of any of the Registrable
Securities at such time as the Registrable Securities are registered for public
sale or an exemption from registration is available, except as required by
federal or state securities laws.

 

(e)   The Company understands the nature of the
Registrable Securities issuable upon the conversion of the Notes and the
exercise of the Warrant and the Additional Warrants and recognizes that the
Registrable Securities may have a potential dilutive effect.  The Company specifically acknowledges that
its obligation to issue the Registrable Securities is binding upon the Company
and enforceable regardless of the dilution such issuance may have on the
ownership interests of other shareholders of the Company.

 

(f)    Except for agreements made in the ordinary
course of business, there is no agreement that has not been filed with the SEC
as an exhibit to a registration statement or to a form required to be filed by
the Company under the Securities Exchange Act the breach of which could have a
material and adverse effect on the Company and its subsidiaries, or would
prohibit or otherwise interfere with the ability of the Company to enter into
and perform any of its obligations under this Agreement in any material
respect.

 

(g)   The Company will at all times have authorized
and reserved a sufficient number of shares of Common Stock for the full
conversion of the Notes and exercise of the Warrant and the Additional
Warrants.

 

7.     Miscellaneous.

 

(a)   Remedies.  In the event of a breach by the Company or
by a Holder, of any of their obligations under this Agreement, each Holder or
the Company, as the case may be,

 

7

 

in addition to being
entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, will be entitled to specific performance of its
rights under this Agreement.

 

(b)   No
Piggyback on Registrations. 
Except as and to the extent specified in Schedule 6(b) hereto, neither
the Company nor any of its security holders (other than the Holders in such
capacity pursuant hereto) may include securities of the Company in the
Registration Statement other than the Registrable Securities, and the Company
shall not after the date hereof enter into any agreement providing any such
right for inclusion of shares in the Registration Statement to any of its
security holders. Except as and to the extent specified in Schedule 6(b)
hereto, the Company has not previously entered into any agreement granting any
registration rights with respect to any of its securities to any Person that
has not been fully satisfied.

 

(c)   Compliance.  Each Holder covenants and agrees that it
will comply with the prospectus delivery requirements of the Securities Act as
applicable to it in connection with sales of Registrable Securities pursuant to
the Registration Statement.

 

(d)   Discontinued
Disposition.  Each Holder
agrees by its acquisition of such Registrable Securities that, upon receipt of
a notice from the Company of the occurrence of a Discontinuation Event, such
Holder will forthwith discontinue disposition of such Registrable Securities
under the Registration Statement until such Holder’s receipt of the copies of
the supplemented Prospectus and/or amended Registration Statement or until it
is advised in writing (the “Advice”) by the Company that the use of the
applicable Prospectus may be resumed, and, in either case, has received copies
of any additional or supplemental filings that are incorporated or deemed to be
incorporated by reference in such Prospectus or Registration Statement. The Company
may provide appropriate stop orders to enforce the provisions of this
paragraph. For purposes of this Section 7(d), a “Discontinuation Event” shall
mean when the Commission notifies the Company whether there will be a “review”
of such Registration Statement and whenever the Commission comments in writing
on such Registration Statement (the Company shall provide true and complete
copies thereof and all written responses thereto to each of the Holders); (iii)
any request by the Commission or any other Federal or state governmental
authority for amendments or supplements to the Registration Statement or
Prospectus or for additional information; (iv) the issuance by the Commission
of any stop order suspending the effectiveness of the Registration Statement covering
any or all of the Registrable Securities or the initiation of any Proceedings
for that purpose; (v) the receipt by the Company of any notification with
respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction, or the
initiation or threatening of any Proceeding for such purpose; and (vi) the
occurrence of any event or passage of time that makes the financial statements
included in the Registration Statement ineligible for inclusion therein or any
statement made in the Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires any revisions to the Registration Statement,
Prospectus or other documents so that, in the case of the Registration
Statement or the Prospectus, as the case may be, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

 

8

 

(e)   Piggy-Back
Registrations.  If at any
time during the Effectiveness Period there is not an effective Registration
Statement covering all of the Registrable Securities and the Company shall
determine to prepare and file with the Commission a registration statement
relating to an offering for its own account or the account of others under the
Securities Act of any of its equity securities, other than on Form S-4 or Form
S-8 (each as promulgated under the Securities Act) or their then equivalents
relating to equity securities to be issued solely in connection with any
acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans, then the Company
shall send to each Holder written notice of such determination and, if within
fifteen days after receipt of such notice, any such Holder shall so request in
writing, the Company shall include in such registration statement all or any
part of such Registrable Securities such holder requests to be registered,
subject to customary underwriter cutbacks applicable to all holders of registration
rights and subject to the consent of any selling stockholder(s) under such
registration statement.

 

(f)    Amendments
and Waivers.  The provisions
of this Agreement, including the provisions of this sentence, may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, unless the same shall be in writing and
signed by the Company and the Holders of the then outstanding Registrable
Securities. Notwithstanding the foregoing, a waiver or consent to depart from
the provisions hereof with respect to a matter that relates exclusively to the
rights of certain Holders and that does not directly or indirectly affect the
rights of other Holders may be given by Holders of at least a majority of the
Registrable Securities to which such waiver or consent relates; provided,
however, that the provisions of this sentence may not be amended, modified, or
supplemented except in accordance with the provisions of the immediately
preceding sentence.

 

(g)   Notices.  Any notice or request hereunder may be given
to the Company or Purchaser at the respective addresses set forth below or as
may hereafter be specified in a notice designated as a change of address under
this Section 7(g).  Any notice or
request hereunder shall be given by registered or certified mail, return
receipt requested, hand delivery, overnight mail or telecopy (confirmed by
mail).  Notices and requests shall be,
in the case of those by hand delivery, deemed to have been given when delivered
to any officer of the party to whom it is addressed, in the case of those by
mail or overnight mail, deemed to have been given when deposited in the mail or
with the overnight mail carrier, and, in the case of a telecopy, when
confirmed.  The address for such notices
and communications shall be as follows:

 

	
   

  	
  If to the Company:

  	
  Artemis International
  Solutions Corp.

  
	
   

  	
  4041 MacArthur
  Boulevard

  
	
   

  	
   

  
	
   

  	
  Suite 260

  
	
   

  	
   

  
	
   

  	
  Newport Beach,
  California  92660

  
	
   

  	
   

  
	
   

  	
  Attention: Robert
  Stefanovich

  
	
   

  	
  Facsimile: (949)
  833-7277

  
	
   

  	
  With a copy to:

  	
   

  

 

9

 

	
   

  	
  Facsimile:

  
	
   

  	
   

  
	
   

  	
  If to a Purchaser:

  	
  To the address set
  forth under

  such Purchaser name on the

  signature pages hereto.

  
	
   

  	
   

  	
   

  
	
   

  	
  If to any other Person
  who is then the registered Holder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To the address of such
  Holder

  as itappears in the stock transfer books

  of the Company

  

 

or such other address as
may be designated in writing hereafter, in the same manner, by such Person.

 

(h)   Successors and Assigns.  This Agreement shall inure to the benefit of
and be binding upon the successors and permitted assigns of each of the parties
and shall inure to the benefit of each Holder. The Company may not assign its
rights or obligations hereunder without the prior written consent of each
Holder. Each Holder may assign their respective rights hereunder in the manner
and to the Persons as permitted under the Note with the prior written consent
of the Company, which consent shall not be unreasonably withheld.

 

(i)    Execution and Counterparts. This Agreement
may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original and, all of which taken together shall
constitute one and the same Agreement. In the event that any signature is
delivered by facsimile transmission, such signature shall create a valid
binding obligation of the party executing (or on whose behalf such signature is
executed) the same with the same force and effect as if such facsimile
signature were the original thereof.

 

8.     Governing Law, Dispute Resolution.

 

(a)   This agreement and the ancillary agreements
shall be governed by and construed and enforced in accordance with the laws of
the state of New York applicable to contracts made and performed in such state,
without regard to the conflicts of law provisions thereof.

 

(b)   Any dispute, controversy or claim arising
under, out of or relating to this Agreement, including, without limitation, its
formation, validity, binding effect, interpretation, performance, breach or
termination, as well as non-contractual claims, shall be referred to and
finally determined by arbitration in accordance with the Commercial Arbitration
Rules (“Rules”) of the American Arbitration Association (“AAA”) and conducted
by a single arbitrator in accordance with the Rules in the City of New York,
State of New York.  In the event of any
conflict between this Agreement and such rules, the provisions of this
Agreement shall govern.

 

(c)   The arbitrator shall not have the authority,
power, or right to alter, change, amend, modify, add, or subtract from any
provision of this Agreement or to award punitive

 

10

 

damages. The decision of
the arbitrator shall be final and incontestably binding upon the parties and
not subject to appeal.  Judgment upon
any award may be entered in any court of competent jurisdiction.  Each party shall share equally the fees and
expenses of the arbitrator.  Prevailing
party shall be entitled to recover from the opposing party all attorneys fees,
costs, expenses, and costs of arbitration. 
This arbitration provision shall be deemed to be self-executing, and in
the event that either party fails to appear at any properly noticed arbitration
proceeding, an award may be entered against such party notwithstanding said
failure to appear.

 

(d)   Cumulative Remedies. The remedies provided
herein are cumulative and not exclusive of any remedies provided by law.

 

(e)   Severability.  If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall
in no way be affected, impaired or invalidated, and the parties hereto shall
use their reasonable efforts to find and employ an alternative means to achieve
the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may
be hereafter declared invalid, illegal, void or unenforceable.

 

(f)    Headings. The headings in this Agreement
are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof.

 

IN WITNESS
WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first written above.

 

	
   

  	
  ARTEMIS INTERNATIONAL SOLUTIONS

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK

SIGNATURE PAGES OF PURCHASER TO FOLLOW]

 

11

 

IN WITNESS
WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first written above.

	
   

  	
  LAURUS MASTER FUND, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
  152 West 57th
  Street

  
	
   

  	
  New York, New York
  10019

  
					

 

12Exhibit 10.1

 

FORM OF NON-STATUTORY STOCK OPTION
AGREEMENT

FOR AUTOMATIC GRANT TO NON-EMPLOYEE DIRECTOR

 

THIS AGREEMENT is entered into and effective as of the
      day of
                ,
          (the “Date of Grant”),
by and between Marten Transport, Ltd., a Delaware corporation (the “Company”),
and
             
(the “Optionee”).

 

A.            The
Company has adopted the Marten Transport, Ltd. 1995 Stock Incentive Plan (the
“Plan”) providing for the grant to non-employee directors of the Company of
certain options to purchase shares of common stock of the Company.

 

B.            On
January 29, 1998, the Board of Directors of the Company resolved to
automatically grant options to purchase up to 5,625 shares of common stock to
non-employee directors; and further resolved that such options are to be
granted effective upon the annual election to the Board of Directors of the
non-employee directors, and are to be exercisable at the fair market value of
the Company’s common stock on the date of such election.

 

C.            The
Optionee was, at the Company’s annual meeting of shareholders, which was held
on the Date of Grant, elected as a non-employee director of the Company
entitled to the benefit of the automatic grant provisions of the Plan.

 

Accordingly,
the parties agree as follows:

 

ARTICLE 1

GRANT OF OPTION

 

The Company hereby grants to the Optionee the right,
privilege, and option (the “Option”) to purchase Five Thousand Six Hundred
Twenty-Five (5,625) shares (the “Option Shares”) of the Company’s common stock,
par value $0.01 per share (the “Common Stock”), pursuant to the terms of
Section 6 of the Plan and subject to the conditions hereinafter set forth and
as set forth in the Plan.  The Option is
not intended to be an “incentive stock option,” as that term is used in Section
422 of the Internal Revenue Code of 1986, as amended (the “Code”).

 

ARTICLE 2

OPTION EXERCISE PRICE

 

The per share price to be paid by Optionee in the
event of an exercise of the Option will be
$        .

 

ARTICLE 3

DURATION OF OPTION AND TIME OF EXERCISE

 

3.1                                 Vesting
and Duration of Options.  The Option
will be exercisable, in its entirety, on the Date of Grant.  The rights to exercise this Option will
remain exercisable through, and will become void and expire as to all
unexercised Option shares, at 5:00 p.m. (Mondovi, Wisconsin time) on
        ,
       (the “Time of Termination”), provided that
in the event of the death of the Optionee, the rights to exercise this Option
shall remain

 

 

exercisable by
the Optionee’s heirs or personal representatives through the earlier of
(i) the Time of Termination or (ii) the date that is one year following
the date of death of the Optionee.

 

3.2                                 Change
in Control.  If a Change in Control
(as defined in the Plan) of the Company occurs, the Committee, in its sole
discretion and without the consent of the Optionee, may determine that the
Optionee will receive, with respect to some or all of the Option Shares, as of
the effective date of any such Change in Control of the Company, cash in an
amount equal to the excess of the Fair Market Value (as defined in the Plan) of
such Option Shares immediately prior to the effective date of such Change in
Control of the Company over the option exercise price per share of this Option.

 

ARTICLE 4

MANNER OF OPTION EXERCISE

 

4.1                                 Notice.  This Option may be exercised by the Optionee
in whole or in part from time to time, subject to the conditions contained in
the Plan and in this Agreement, by delivery, in person, by facsimile or
electronic transmission or through the mail, to the Company at its principal
executive office in Mondovi, Wisconsin (Attention: President), of a written
notice of exercise.  Such notice will be
in a form satisfactory to the Committee, will identify the Option, will specify
the number of Option Shares with respect to which the Option is being
exercised, and will be signed by the person or persons so exercising the
Option.  Such notice will be accompanied
by payment in full of the total purchase price of the Option Shares purchased.  In the event that the Option is being exercised,
as provided by the Plan and Section 5 below, by any person or persons other
than the Optionee, the notice will be accompanied by appropriate proof of the
right of such person or persons to exercise the Option.  As soon as practicable after the effective
exercise of the Option, the Optionee will be recorded on the stock transfer
books of the Company as the owner of the Option Shares purchased, and the
Company will deliver to the Optionee one or more duly issued stock certificates
evidencing such ownership.

 

4.2                                 Payment.  At the time of exercise of this Option, the
Optionee will pay the total purchase price of the Option Shares to be purchased
entirely in cash (including a check, bank draft or money order, payable to the
order of the Company).

 

ARTICLE 5

NONTRANSFERABILITY

 

Neither this Option nor the Option Shares acquired
upon exercise may be transferred by the Optionee, either voluntarily or
involuntarily, or subjected to any lien, directly or indirectly, by operation
of law or otherwise, except pursuant to testamentary will or the laws of
descent and distribution or as otherwise expressly permitted in the Plan.  Any attempt to transfer or encumber this
Option or the Option Shares other than in accordance with this Agreement and
the Plan will be null and void and will void this Option.

 

2

 

ARTICLE 6

LIMITATION OF LIABILITY

 

Nothing in this Agreement will be construed to (a)
limit in any way the right of the Company to terminate the employment or service
of the Optionee at any time, or (b) be evidence of any agreement or
understanding, express or implied, that the Company will retain the Optionee in
any particular position, at any particular rate of compensation or for any
particular period of time.

 

ARTICLE 7

WITHHOLDING TAXES

 

The Company is entitled to (a) withhold and deduct
from future wages of the Optionee (or from other amounts which may be due and
owing to the Optionee from the Company), or make other arrangements for the
collection of, all legally required amounts necessary to satisfy any federal,
state or local withholding or employment-related tax requirements attributable
to the grant or exercise of this Option or otherwise incurred with respect to
this Option, or (b) require the Optionee promptly to remit the amount of such
withholding to the Company before acting on the Optionee’s notice of exercise
of this Option.  In the event that the
Company is unable to withhold such amounts, for whatever reason, the Optionee
hereby agrees to pay to the Company an amount equal to the amount the Company
would otherwise be required to withhold under federal, state or local law.

 

ARTICLE 8

ADJUSTMENTS

 

In the event of any reorganization, merger,
consolidation, recapitalization, liquidation, reclassification, stock dividend,
stock split, combination of shares, rights offering, divestiture or
extraordinary dividend (including a spin-off), or any other change in the
corporate structure or shares of the Company, the Committee (or, if the Company
is not the surviving corporation in any such transaction, the board of
directors of the surviving corporation), in order to prevent dilution or
enlargement of the rights of the Optionee, will make appropriate adjustment
(which determination will be conclusive) as to the number, kind and exercise
price of securities subject to this Option.

 

ARTICLE 9

SUBJECT TO PLAN

 

The Option and the Option Shares granted and issued
pursuant to this Agreement have been granted and issued under, and are subject
to the terms of, the Plan.  The terms of
the Plan are incorporated by reference in this Agreement in their entirety, and
the Optionee, by execution of this Agreement, acknowledges having received a
copy of the Plan.  The provisions of
this Agreement will be interpreted as to be consistent with the Plan, and any
ambiguities in this Agreement will be interpreted by reference to the
Plan.  In the event that any provision
of this Agreement is inconsistent with the terms of the Plan, the terms of the
Plan will prevail.

 

3

 

ARTICLE 10

MISCELLANEOUS.

 

10.1                           Binding
Effect.  This Agreement will be
binding upon the heirs, executors, administrators and successors of the parties
to this Agreement.

 

10.2                           Governing
Law.  This Agreement and all rights and
obligations under this Agreement will be construed in accordance with the Plan
and governed by the laws of the State of Wisconsin.

 

10.3                           Entire
Agreement.  This Agreement and the
Plan set forth the entire agreement and understanding of the parties to this
Agreement with respect to the grant and exercise of this Option and the
administration of the Plan and supersede all prior agreements, arrangements,
plans and understandings relating to the grant and exercise of this Option and
the administration of the Plan.

 

10.4                           Amendment
and Waiver.  Other than as provided
in the Plan, this Agreement may be amended, waived, modified or canceled only
by a written instrument executed by the parties hereto or, in the case of a
waiver, by the party waiving compliance.

 

The parties to this Agreement have executed this
Agreement effective the day and year first above written.

 

	
   

  	
  MARTEN
  TRANSPORT, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Its

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By execution
  of this Agreement,

  the Optionee acknowledges having

  received a copy of the Plan.

  	
  OPTIONEE

  

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Name and
  Address)

  
							

 

4

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