Document:

Exhibit 10.52.1

 

AMENDMENT NO. 1 TO REGISTRATION RIGHTS AGREEMENT

July 30, 2004

 

Reference is
made to that certain Registration Rights Agreement dated August 14, 2003 (the
“Agreement”)  by and between Artemis
International Solutions Corporation, a Delaware corporation (the “Company”) and Laurus Master Fund, Ltd. (the
“Purchaser” or “Laurus”).  Capitalized
terms used herein without definition shall have the meanings ascribed to such
terms in the Agreement.

 

WHEREAS, the
Company and Laurus have agreed to amend certain terms of the Agreement and the
Company desires to make such changes; and

 

WHEREAS, the
Company and Laurus agree that on the date hereof the Company is in compliance
with all the terms and provisions of the Agreement.

 

NOW, THEREFORE, in
consideration for the execution and delivery by the Company of this amendment,
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:

 

1.                                       The
definition of “Filing Date” contained in Section 1 of the Agreement is hereby
deleted in its entirety and the following inserted in its stead:

 

““Filing
Date” means, with respect to the Registration Statement required to
be filed hereunder regarding the first Secured Convertible Minimum Borrowing
Note, no later than thirty (30) days after closing on the amendment to the
Agreement hereof, with the effective date of such Registration Statement to be
effective no later than ninety (90) days after such closing in the event that
the Registration Statement is not reviewed by the SEC, or in the event the
Registration Statement is reviewed by the SEC, then the effective date is to be
effective no later than one hundred twenty (120) days after such closing.With
respect to each $1,500,000 tranche of Loans funded after the date hereof –
meaning any new (serialized) Minimum Borrowing Note issued to Laurus upon
attaining a $1,500,000 aggregation – “Filing
Date” shall mean, the date which is forty five (45) days after such
funding of such additional $1,500,000 of loans evidenced by a Minimum Borrowing
Note and with respect to shares of Common Stock issuable to the Holder as a
result of adjustments to the Fixed Conversion Price made pursuant to Section
3.5 of the Secured Convertible Minimum Borrowing Notes, or Section 4 of the
Warrant or otherwise, forty five (45) days after either the occurrence of such
event or the date of the adjustment of the Fixed Conversion Price.”

 

2.                                       Section
6(a) of the Registration Rights Agreement is hereby amended by adding the following
provision as its last sentence:

 

Notwithstanding
anything to the contrary herein, Laurus acknowledges that while the re-audit by
Squar Milner of the Company’s December 31, 2001 consolidated financial
statements is now complete, the Company has decided not to file an amendment to
its December 31, 2002 Form 10-K as previously disclosed, which would require
obtaining

 

 

the consents of certain
predecessor auditors to re-issue their audit reports on the Company’s financial
statements for the year ended December 31, 2000.  The Company has not
obtained such consents, and instead, has included all relevant 2001 financial
information in the annual report on Form 10-K for the year ended December 31,
2003.

 

3.                                       Section
6(c) of the Registration Rights Agreement is hereby amended by adding the
following provision as its last sentence:

 

Notwithstanding anything to the
contrary herein, Laurus acknowledges that on June 16, 2004, the Company
completed a private placement of $9.0 million of convertibe preferred stock.

 

4.                                       The
Registration Rights Agreement shall be deemed amended to allow the Company to
file a Registration Statement encompassing both the shares of Common Stock
issuable to Holder, as well as shares of Common Stock issuable to the preferred
shareholder group in the Company’s private investment funding transaction
involving Emancipation Capital as disclosed to Holder in writing and as set
forth on Schedule A.

 

5.                                       The
foregoing amendment shall be effective as of August 14, 2003.

 

6.                                       There
are no other amendments to the Agreement, and all of the other forms, terms and
provisions of the Agreement remain in full force and effect.

 

7.                                       The
Company hereby represents and warrants to Laurus that as of the date hereof all
representation, warranties and covenants made by the Company in connection with
the Agreement are true correct and complete and all of the Company’s covenants
requirements have been met.

 

 

IN WITNESS WHEREOF,
each of the Company and Laurus has caused this Amendment No. 1 to Registration
Rights Agreement to be signed in its name and be effective as of the 14th
day of August, 2003.

 

 

	
   

  	
  ARTEMIS INTERNATIONAL SOLUTIONS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LAURUS MASTER FUND, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:Exhibit 10.58

 

RESTRUCTURING AGREEMENT

 

July 30, 2004

 

Reference is
made to (i) that certain Security Agreement dated as of August 14, 2003 (the
“Security Agreement”) among Artemis International Solutions Corporation, a
Delaware corporation (the “Company”), Artemis International Solutions, Ltd., a
wholly owned subsidiary of the Company (the “Guarantor Subsidiary”) and LAURUS
MASTER FUND, LTD., c/o Ironshore Corporate Services Ltd., P.O. Box 1234 G.T.,
Queensgate House, South Church Street, Grand Cayman, Cayman Islands (“Laurus”) and (ii) any and all related Ancillary
Agreements, as defined pursuant to the Security Agreement (“Ancillary
Agreements”), including but not limited to that certain Secured Convertible
Note of the Company dated August 14, 2003 issued to Laurus in the original
principal amount of Five Million Dollars ($5,000,000) (the “Note”) and that
certain Registration Rights Agreement dated August 14, 2003 (“Registration
Rights Agreement”). Capitalized terms used herein without definition shall have
the meanings ascribed to such terms in the Security Agreement.

 

WHEREAS, the
Company, on the date hereof, has an outstanding debt under the Note in the
aggregate amount of $1,500,0000.  The
Company and Laurus desire to restructure the Security Agreement as embodied and
encompassed further by the Ancillary Agreements, including but not limited to
the Note and the Registration Rights Agreement, (“the Restructrured
Agreement”); and

 

WHEREAS, both
Laurus and the Company acknowledge, recognize and agree that as part of the
Restructured Agreement, the Security Agreement, Note and the Registration
Rights Agreement are to be amended, in part to help assure acceptance of the
Company’s Registration Statement to be filed with the Securities and Exchange
Commission as required by the Registrations Rights Agreement; and

 

WHEREAS,
Laurus has agreed to waive its right to collect from the Company any and all
additional liquidated damages, other than $75,000 which shall be added to the
outstanding debt, that otherwise may have been applicable as a result of the
Company not being able to file timely the Registration Statement on Form S-1
pursuant to Section 2 of the Registration Rights Agreement as originally
required (“the Laurus Waiver”).

 

NOW THEREFORE,
in consideration for the Laurus Waiver and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Company agrees on the date hereof to:

 

(i)                                                             execute
and deliver (in exchange and replacement, in substitution and not in satisfaction
of the Note) each of the Secured Convertible Minimum Borrowing Note, and the
Secured Revolving Note attached hereto as Exhibits A and B respectively, which
such notes, among other things, reset the Fixed Conversion Price of the Note
to, (i) $1.45 per share for a first conversion tranche of 190,000 shares of the
Company’s Common Stock, (ii) $1.81 per

 

 

share for a second conversion tranche of 190,000 shares of the
Company’s Common Stock, and (iii) $2.57 per share for a third conversion
tranche of 342,646 shares of the Company’s Common Stock (representing one
hundred and five percent (105%) of the closing price of the Company’s Common
Stock as of June 21, 2004). Simultaneously therewith, Laurus will deliver the
Note to the Company, marked “Cancelled”; and

 

(ii)                                                          execute
and deliver Amendment No. 1 to the Security Agreement and Amendment No. 1 to
the Registration Rights Agreement, attached hereto as Exhibit C and D
respectively.

 

In connection
with a proposed additional amendment to the Security Agreement, requested by
the Company on the date hereof, each of the Company and the Guarantor
Subsidiary hereby agree: that all present and future obligations of the Company
to Laurus with respect to the Restructured Agreement and in connection with the
requested amendment will be guaranteed by the Guarantor Subsidiary, such
guarantee to be secured by a grant to Laurus of security interests in the
assets (all real and personal assets, but excluding intellectual property) of
the Guarantor Subsidiary, such collateral to be set forth in such proposed
amendment to include, but not be limited to:

 

(i)                    the Guarantor Subsidiary’s bank
accounts;

(ii)                   material contracts that the
Guarantor Subsidiary now has or at any time in the future may enter into; and

(iii)                  freehold property now owned or at any
time hereafter acquired by the Guarantor Subsidiary .

 

No pledge of
the Guarantor Subsidiary’s common stock will be required as collateral in
connection with the execution and delivery of the amendment to the Security
Agreement.

 

2

 

IN WITNESS WHEREOF, the parties hereto have agreed to the foregoing on
this 30th day of July, 2004.

 

 

	
   

  	
  ARTEMIS INTERNATIONAL

  SOLUTIONS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARTEMIS INTERNATIONAL

  SOLUTIONS, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed and Accepted:

  
	
   

  
	
  LAURUS MASTER FUND, LTD.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name: David
  Grin

  
	
  Title:
  Director

  
						

 

3

 

EXHIBIT A, B, C, D

 

4

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