Document:

Unassociated Document

     

    Exhibit
      10.3

    FIRST
      AMENDMENT TO LETTER AGREEMENT

    

    This
      First Amendment to the Letter Agreement (this “Amendment”),
      is
      made and entered into as of March 28, 2008, by and among IXI
      MOBILE (R&D) LTD.,
      an
      Israeli limited liability company, (the “Company”)
      IXI
      MOBILE, INC.,
      a
      Delaware corporation (the “Parent
      Guarantor”),
      and
SOUTHPOINT
      MASTER FUND LP
      (the
“Lender).
      The
      parties hereby agree as follows:

    

    RECITALS

    

    WHEREAS,
      the
      Company, the Parent Guarantor and the Lender have previously entered into that
      certain Letter Agreement dated as of March 28, 2007, (the “Letter
      Agreement”);
      and

    

    WHEREAS,
      The
      parties acknowledge that as of March 31, 2008, the sum of $2,000,000 will be
      owing as outstanding loan to the Lenders and the sum of $195,616 will be owing
      as accrued and unpaid interest thereon to the Lenders. The parties agree that
      such accrued and unpaid interest shall from and after April 1, 2008 be
      capitalized and treated as principal such that for all purposes under this
      Amendment the amount of loan outstanding after giving effect hereto shall be
      $2,195,616 (“Loan Amount”).

    

    WHEREAS,
      the
      parties now wish to further amend the Letter Agreement as set forth in this
      Amendment. 

    

    NOW,
      THEREFORE,
      in
      consideration of the foregoing and for other good and valuable consideration,
      the receipt and adequacy of which are hereby acknowledged, the parties hereby
      agree as follows:

    

    Unless
      otherwise defined below, all capitalized terms herein shall have the meanings
      assigned to such terms in the Letter Agreement

    

    1. Amendment
      of the Letter Agreement.

     

    1.1 Section
      1.2 of the Letter Agreement is hereby amended and restated in its entirety
      to
      read as follows: 

     

    "1.2 Interest.
      

    

    The
      Loan
      Amount shall bear an annual interest at a rate of 10% per annum until March
      31,
      2008 and 20% thereafter, compounded annually on the basis of 365 days a year
      (the “Interest”). The amount of interest payable shall be added to, and deemed
      for all purposes of, the loan to constitute a portion of the principal amount
      of
      the loan outstanding as of March 31, 2008. Notwithstanding any other provision
      hereof, the amount of interest payable hereunder shall not in any event exceed
      the maximum amount permitted by the law applicable to interest charged on
      commercial loans. Accrued and
      unpaid interest
      on any portion of the principal amount of the loan outstanding shall be payable
      on the Maturity Date. In any event, all unpaid principal and accrued and unpaid
      interest through the Maturity Date shall be due and payable in full upon a
      change of control of the Company or the Parent Guarantor without the prior
      written consent of the Lenders which is prohibited by Section 7.11(1) of that
      certain Loan Agreement dated June 19, 2006, or on the Maturity
      Date.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.2 Section
      1.4 of the Letter Agreement is hereby amended and restated in its entirety
      to
      read as follows:

     

    1.4 Repayment
      of Loan Amount

    

    All
      payment obligations to the Lenders under the Letter Agreements shall be due
      and
      payable on the earlier to occur of: (i) the acceleration of the Loans in
      accordance with the terms of this Agreement, including Section 1.2 above;
      and (ii) June 5, 2010 (subsections (i) and (ii) to be referred to
      herein as the “Maturity
      Date”)

     

    2. No
      Other Modifications.
      Except
      as expressly set forth herein, all other terms and conditions of the Letter
      Agreement shall remain in full force and effect.

     

    3. Miscellaneous.

     

    3.1 Counterparts;
      Fax Signatures.
      This
      Amendment may be executed in counterparts, each of which shall constitute an
      original, but all of which together shall constitute one and the same Amendment.
      Originally executed counterparts may be delivered by facsimile and any such
      delivery shall be valid for all purposes as delivery of a manual signature
      and
      equally admissible in any legal proceedings to which any of the Company, the
      Parent Guarantor, or the Lender is a party.

     

    3.2 Severability.
      If any
      provision of this Amendment or the application thereof, shall for any reason
      and
      to any extent be determined by a court of competent jurisdiction to be invalid
      or unenforceable under applicable law, the remaining provisions of this
      Amendment shall be interpreted so as best to reasonably effect the intent of
      the
      parties hereto.

     

    3.3 Entire
      Agreement.
      This
      Amendment, together with the Letter Agreement and all exhibits hereto and
      thereto, constitute the entire understanding and agreement of the parties with
      respect to the transactions contemplated herein and supersede all prior and
      contemporaneous understandings and agreements, whether written or oral, with
      respect to such transactions.

     

    3.4 Governing
      Law;
      Forum.
      This
      Amendment shall be governed in all respects by Section 8 of the Letter
      Agreement.

     

    

    

    [Remainder
      of Page Intentionally Left Blank]

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties have executed this First Amendment to Letter
      Agreement as of the date first written above. 

    

    

    
      	 	
              IXI
                MOBILE (R&D) LTD.

            
	 	 
	 	 
	 	
              By:
                /s/
                Lihi
                Segal                                            
                

            
	 	 
	 	
              Name:
                Lihi Segal

            
	 	 
	 	
              Title:
                CFO

            
	 	 
	 	 
	 	
              IXI
                MOBILE, INC.

            
	 	 
	 	 
	 	
              
                By:
                  /s/
                  Lihi
                  Segal                                            
                  

              

            
	 	 
	 	
              Name:
                Lihi Segal

            
	 	 
	 	
              Title:
                CFO

            

    

    

    

    

    [Signature
      Page to First Amendment to Letter Agreement]

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties have executed this First Amendment to Letter
      Agreement as of the date first written above.

    

    

    
      	 	
              SOUTHPOINT
                MASTER FUND, LP

            
	 	 	 	 
	 	
              By:

            	
              Southpoint
                GP, LP, its general partner

            
	 	 	 	 
	 	 	
              By:

            	
              Southpoint
                GP, LLC

            
	 	 	 	 
	 	 	 	
              By:/s/
                John S. Clark,
                II                                                   
                

            
	 	 	 	 
	 	 	 	
              Name:
                John S. Clark, II

            
	 	 	 	 
	 	 	 	
              Title:  
                Manager

            

    

     

     

     

    [Signature
      Page to First Amendment to Letter Agreement]

     

    
      
        
        

      

      
        4Unassociated Document

     

    Exhibit
      10.4

    THIRD
      AMENDMENT TO LOAN AGREEMENT

    

    This
      Third Amendment to the Loan Agreement (this “Amendment”),
      is
      made and entered into as of March 28, 2008, by and among IXI
      MOBILE (R&D) LTD.,
      an
      Israeli limited liability company, (the “Company”),
      IXI MOBILE,
      INC.,
      a
      Delaware corporation (the “Parent
      Guarantor”)
      and
SOUTHPOINT
      MASTER FUND LP
      (the
“Lender).
      The
      parties hereby agree as follows:

    

    RECITALS

    

    WHEREAS,
      the
      Company, the Parent Guarantor and the Lender have previously entered into that
      certain Loan Agreement dated as of June 19, 2006, a First Amendment thereto
      dated as of June 26, 2006 and a Second Amendment thereto dated December 5,
      2006
      (collectively, the "Loan
      Agreement");
      and

    

    WHEREAS,
      The
      parties acknowledge that as of March 31, 2008, the sum of $4,160,000 will be
      owing as outstanding Loans to the Lender and the sum of $2,904,800 will be
      owing
      as accrued and unpaid interest thereon to the Lender. The parties agree that
      such accrued and unpaid interest shall from and after April 1, 2008 be
      capitalized and treated as principal such that for all purposes under this
      agreement the amount of Loans outstanding after giving effect hereto shall
      be
      $7,064,800.

    

    WHEREAS,
      the
      parties now wish to further amend the Loan Agreement as set forth in this
      Amendment. 

    

    NOW,
      THEREFORE,
      in
      consideration of the foregoing and for other good and valuable consideration,
      the receipt and adequacy of which are hereby acknowledged, the parties hereby
      agree as follows:

    

    Unless
      otherwise defined below, all capitalized terms herein shall have the meanings
      assigned to such terms in the Loan Agreement

    

    1. Amendment
      of the Loan Agreement.

     

    1.1 The
      definition of the term "Basic Interest Rate" is hereby amended and restated
      in
      its entirety to read as follows:

     

    "“Basic
      Interest Rate”
means
      with respect to each Loan, 10% per annum until March 31, 2008 and 20%
      thereafter;

    

    1.2 Section
      2.3 of the Loan Agreement is hereby amended and restated in its entirety to
      read
      as follows: 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "2.3 Repayment.
      

    

    (a) All
      payment obligations to the Lenders under the Loan Documents shall be due and
      payable on the earlier to occur of: (i) the acceleration of the Loans in
      accordance with the terms of this Agreement, including Section 2.4; and
      (ii) June 5, 2010 (subsections (i) and (ii) to be referred to
      herein as the “Maturity
      Date”)
      unless
      any such portion of the principal amount of the Loan and any accumulated unpaid
      interest thereon has already been prepaid in full pursuant to Section 2.5
      hereof. The parties hereby agree that the Lenders shall have the right to
      convert all or any part of each their respective Loan pursuant to Section 3.2
      below and that any amount so converted into Conversion Stock will be deemed
      fully paid and all Obligations relating thereto will be deemed fully
      satisfied.

     

    (b) The
      parties acknowledge that all payment obligations of the Loan Parties to the
      Leumi Guarantor assuming any part of the Leumi Debt (both terms as defined
      in
      Section 4.22(b) below) pursuant to Section 3.1 below, including, without
      limitation, payment of the entire unpaid principal of such assumed amount and
      any accumulated unpaid interest thereon, shall be due and payable on the earlier
      to occur of: (i) the Repayment Date; and (ii) the two dates combining of the
      Maturity Date. The parties hereby agree that the Leumi Guarantor shall have
      the
      right to convert all or any part of its respective Conversion Amount pursuant
      to
      Section 3.2 below and that any amount so converted into Conversion Stock will
      be
      deemed fully paid and all obligations relating thereto will be deemed fully
      satisfied."

     

    1.3 Section
      2.4 of the Loan Agreement is hereby amended and restated in its entirety to
      read
      as follows:

     

    "2.4 Loan
      Interest Rate.
      The
      Company shall pay interest on the unpaid principal amount of each Loan from
      the
      Closing Date until such Loan has been paid in full, at a per annum rate of
      interest equal to the Basic Interest Rate. All computations of interest on
      each
      Loan shall be based on a year of 365 days for actual days elapsed. The amount
      of
      interest payable shall be added to, and deemed for all purposes of, the Loans
      to
      constitute a portion of the principal amount of the Loans outstanding as of
      the
      date hereof. Notwithstanding any other provision hereof, the amount of interest
      payable hereunder shall not in any event exceed the maximum amount permitted
      by
      the law applicable to interest charged on commercial loans. Accrued and
      unpaid interest
      on any portion of the principal amount of the Loan outstanding shall be payable
      on the Maturity Date. In any event, all unpaid principal and accrued and unpaid
      interest through the Maturity Date shall be due and payable in full upon a
      change of control of the Company or the Parent Guarantor without the prior
      written consent of the Lenders which is prohibited by Section 7.11, or on the
      Maturity Date.

     

    2. No
      Other Modifications.
      Except
      as expressly set forth herein, all other terms and conditions of the Loan
      Agreement shall remain in full force and effect.

     

    3. Miscellaneous.

     

    3.1 Counterparts;
      Fax Signatures.
      This
      Amendment may be executed in counterparts, each of which shall constitute an
      original, but all of which together shall constitute one and the same Amendment.
      Originally executed counterparts may be delivered by facsimile and any such
      delivery shall be valid for all purposes as delivery of a manual signature
      and
      equally admissible in any legal proceedings to which any of the Company, the
      Parent Guarantor, or the Lender is a party.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    3.2 Severability.
      If any
      provision of this Amendment or the application thereof, shall for any reason
      and
      to any extent be determined by a court of competent jurisdiction to be invalid
      or unenforceable under applicable law, the remaining provisions of this
      Amendment shall be interpreted so as best to reasonably effect the intent of
      the
      parties hereto.

     

    3.3 Entire
      Agreement.
      This
      Amendment, together with the Loan Documents and all exhibits hereto and thereto,
      constitute the entire understanding and agreement of the parties with respect
      to
      the transactions contemplated herein and supersede all prior and contemporaneous
      understandings and agreements, whether written or oral, with respect to such
      transactions.

     

    3.4 Governing
      Law;
      Forum.
      This
      Amendment shall be governed in all respects by Section 9.10 and 9.13 of the
      Loan
      Agreement.

     

    

    

    [Remainder
      of Page Intentionally Left Blank]

    

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

    

      IN
        WITNESS WHEREOF, the parties have executed this Third Amendment to Loan
        Agreement as of the date first written above. 

    

    

    

    
      	 	
              IXI
                MOBILE (R&D) LTD.

            
	 	 
	 	 
	 	
              By:
                /s/
                Lihi
                Segal                                            
                

            
	 	 
	 	
              Name:
                Lihi Segal

            
	 	 
	 	
              Title:
                CFO

            
	 	 
	 	 
	 	
              IXI
                MOBILE, INC.

            
	 	 
	 	 
	 	
              
                By:
                  /s/
                  Lihi
                  Segal                                            
                  

              

            
	 	 
	 	
              Name:
                Lihi Segal

            
	 	 
	 	
              Title:
                CFO

            

    

    

    

    

    [Signature
      Page to Third Amendment to Letter Agreement]

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

      IN
        WITNESS WHEREOF, the parties have executed this Third Amendment to Loan
        Agreement as of the date first written above.

    

    

    

    
      	 	
              SOUTHPOINT
                MASTER FUND, LP

            
	 	 	 	 
	 	
              By:

            	
              Southpoint
                GP, LP, its general partner

            
	 	 	 	 
	 	 	
              By:

            	
              Southpoint
                GP, LLC

            
	 	 	 	 
	 	 	 	
              By:/s/
                John S. Clark,
                II                                                   
                

            
	 	 	 	 
	 	 	 	
              Name:
                John S. Clark, II

            
	 	 	 	 
	 	 	 	
              Title:  
                Manager

            

    

     

     

     

    [Signature
      Page to Third Amendment to Letter Agreement]

     

    
      
        
        

      

      
        5

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