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EXHIBIT 99.6
VSOURCE, INC.
REGISTRATION RIGHTS AGREEMENT
This Registration Rights Agreement ("Agreement") is entered into as of
July 31, 2000 by and among Vsource, Inc., a Nevada corporation (the "Company"),
and the Purchasers (the "Purchasers") of the Company's Series A Convertible
Preferred Stock pursuant to that certain Convertible Preferred Stock Purchase
Agreement of even date herewith (the "Purchase Agreement") and named in Exhibit
A hereto.
WHEREAS, in connection with the Company's issuance of Series 2-A
Convertible Preferred Stock pursuant to the Purchase Agreement, the Company has
agreed to enter into this Registration Rights Agreement as a condition to the
Closing thereunder;
NOW THEREFORE, in consideration of the mutual agreements and covenants
contained herein, the Company and the Purchasers hereby agree as follows:
1. DEFINITIONS. As used herein:
1.1. The term "Holder" means any person owning or having the right
to acquire Registrable Shares or any assignee thereof in accordance with Section
2.8 hereof.
1.2. The terms "register," "registered," and "registration" refer to
a registration effected by preparing and filing a registration statement in
compliance with the Securities Act (as defined below) and the applicable rules
and regulations thereunder, and the declaration or ordering of the effectiveness
of such registration statement.
1.3. For the purposes hereof, the term "Registrable Shares" means
and includes (i) the shares of common stock of the Company issued or issuable
upon conversion of the Series 2-A Convertible Preferred Stock (the "Series 2-A
Shares") and (ii) any common stock of the Company issued, or issuable upon the
conversion or exercise of (A) any warrant, right or other security which is
issued, as a result of a stock split, dividend or other distribution with
respect to or in exchange for or in replacement of the shares referenced in (i)
above and (B) any warrant, right or other security acquired by a Holder after
the date hereto pursuant the Purchase Agreement of even date herewith or this
Agreement; excluding in all cases, however, any Registrable Shares sold by a
person in a transaction in which his or her rights under Section 2 are not
assigned. In addition, any particular shares of Common Stock shall cease to be
Registrable Shares when: (w) a registration statement with respect to the sale
of such securities shall have become effective under the Securities Act and such
securities shall have been disposed of in accordance with such registration
statement, (x) they shall have been distributed to the public pursuant to Rule
144 (or any successor provision) under the Securities Act, (y) they shall have
been otherwise transferred, new certificates for them shall have been delivered
by the Company and subsequent disposition of them shall not require registration
or qualification of them under the Securities Act or any similar state law then
in force, or (z) they shall have ceased to be outstanding.
1.4. The term "Ownership Percentage" means and includes, with
respect to each Holder of Registrable Shares requesting inclusion of Registrable
Shares in a Public Offering, the number of Registrable Shares held by such
Holder divided by the aggregate of (i) all Registrable Shares held by all
Holders requesting registration in such offering and (ii) the total number of
all other securities entitled
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to registration pursuant to any agreement with the Company approved by the Board
of Directors and held by others participating in the Public Offering.
1.5. The term "Securities Act" means the Securities Act of 1933, as
amended.
1.6. The term "Public Offering" means and includes the closing of a
public offering pursuant to an effective registration statement under the
Securities Act, covering the offer and sale of securities issued by the Company
to the general public, other than an offering made solely in connection with a
business combination or a compensatory benefit plan.
2. REGISTRATION RIGHTS.
2.1 REGISTRATION STATEMENT; WARRANTS. As soon as practicable after
the date hereof, but in any event no later than sixty (60) days after the Second
Closing, the Company shall prepare and file with the SEC a registration
statement intended to effect a shelf registration in connection with a Rule 415
offering (the "Shelf Registration Statement") with respect to all Registrable
Shares and use its reasonable efforts to cause such Shelf Registration Statement
to become effective and keep such registration statement effective until the
earlier of (x) the date on which such Shelf Registration Statement has been
effective for two (2) years; (y) such time as all Registrable Shares have been
sold or disposed of; and (z) such time as all Registrable Shares are eligible
for sale pursuant to SEC Rule 144. If the Shelf Registration Statement has not
been declared effective before the date which is 120 days after the Second
Closing (as defined in the Purchase Agreement), then the Company shall issue to
each Holder a warrant to purchase, at an exercise price equal to the Purchase
Price (as defined in the Purchase Agreement) of that Holder's shares, a number
of shares of Common Stock equal to the product of (x) two percent (2%) of the
number of Registrable Shares then held by such Holder (including Registrable
Shares which may be acquired upon conversion of Series 2-A Shares) and (y) a
fraction, the numerator of which is the lesser of 450 and the number of days by
which the date on which the Shelf Registration Statement is declared effective
follows the date which is 120 days after the Second Closing, and the denominator
of which is thirty (30). Each such warrant shall be in form reasonably
acceptable to Mercantile (as defined in the Purchase Agreement) and the Company
and their respective counsel, shall expire on the fifth (5th) anniversary of its
date of issuance, and shall contain "anti-dilution" provisions parallel to those
contained in the Certificate of Designation with respect to the Series 2-A
Shares. If the Second Closing does not occur, all references in this Section 2.1
to the Second Closing shall mean the First Closing.
2.2 "PIGGY BACK" REGISTRATION. If at any time the Company shall
determine to register under the Securities Act any of its common stock (other
than a registration relating to an offering made solely in connection with a
business combination or a compensatory benefit plan), it shall send to each
Holder written notice of such determination and, if within twenty (20) days
after receipt of such notice, such Holder shall so request in writing, the
Company shall use its best efforts to include in such registration statement all
or any part of the Registrable Shares that such Holder requests to be
registered. If the shares being sold by the Company under such registration are
to be underwritten, the Registrable Shares shall be included in such
underwriting. Notwithstanding the foregoing, if, in connection with any Public
Offering involving an underwriting of common stock to be issued by the Company,
the managing underwriter shall impose a limitation on the number of shares of
common stock included in any such registration statement because, in such
underwriter's judgment, such limitation is necessary based on market conditions,
the Company may exclude, to the extent so advised by the managing underwriter,
the Registrable Shares from the underwriting; provided, however, that if the
underwriters do not entirely exclude the Registrable Shares from the
underwriting, the Company shall be obligated to include in such registration
statement, with respect to the requesting Holder, an amount of Registrable
Shares equal to the product of (i) the number of Registrable Shares that remain
available for registration after the underwriter's cut back and (ii) such
Holder's Ownership Percentage, as that term is
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defined in Section 1.4; provided further, however, Registrable Shares may not be
excluded from such underwriting to any greater extent than securities held by
any other person who has exercised similar "piggy-back" rights with respect to
such securities in connection with such underwriting. No such reduction shall be
made with respect to securities being offered by the Company for its own account
unless the offering is pursuant to a demand of any stockholder of the Company
exercising registration rights. If any Holder disapproves of the terms of any
underwriting referred to in this section, he may elect to withdraw therefrom by
written notice to the Company and the underwriter at least three (3) days prior
to the effectiveness of the registration statement filed in connection with such
proposed Public Offering. At any time prior to the effectiveness of such
registration statement, the Company may withdraw the entire registration,
including the registration of any Registrable Shares, if the Company's Board of
Directors determines that it is in the Company's best interest to do so and
promptly provides notice of such withdrawal to the Holders. The Company may
require each Holder selling Registrable Shares to furnish Company such
information and documents regarding the Holder and the distribution of such
securities as may be required to be disclosed in the Registration Statement by
the rules and regulations under the Securities Act or under any other applicable
securities or blue sky laws of the applicable jurisdictions. The Company will
use its best efforts to maintain the effectiveness for up to three (3) months of
any registration statement pursuant to which any of the Registrable Shares are
being offered under this Section 2.2; provided, however, that such three-month
period shall be extended for a period of time equal to the period the Holder
refrains from selling any securities included in such registration at the
request of an underwriter of common stock (or other securities) of the Company.
2.3 EFFECTIVENESS.
(a) The Company will from time to time amend or supplement the
registration statement and the prospectus contained therein used in any
Public Offering under which Registrable Shares are being sold pursuant to
this Agreement as and to the extent necessary to comply with the
Securities Act and any applicable state securities statute or regulation.
(b) Each Holder selling Registrable Shares agrees that, upon
receipt of any notice from Company of the happening of any event of the
kind described in Section 2.7(c), such Holder will immediately
discontinue disposition of Registrable Shares pursuant to the
Registration Statement until such Holder's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 2.7(c), and,
if so directed by Company, each such Holder will deliver to Company (at
Company's expense) all copies, other than permanent file copies then in
such Holder's possession, of the prospectus covering such Registrable
Shares current at the time of receipt of such notice. In such event, the
Company shall promptly, and within no more than 30 days of giving notice
to the Holders as provided above in this Section 2.3(c), prepare a
supplement or post-effective amendment to such registration statement or
related prospectus or file any other required document so that, as
thereafter delivered to the purchasers of Registrable Securities sold
thereunder, the prospectus will not contain an untrue statement of a
material fact or omit 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.
2.4 INDEMNIFICATION.
(a) Indemnification of Holders. In the event that the Company
registers any of the Registrable Shares under the Securities Act, the
Company will indemnify and hold harmless each Holder and each underwriter
of the Registrable Shares so registered (including any broker or dealer
through which such shares may be sold) and each person, if any, who
controls such Holder or any such underwriter within the meaning of
Section 15 of the Securities Act from and against any and all losses,
claims, damages, expenses or liabilities (or any action in respect
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thereof), joint or several, to which they or any of them become subject
under the Securities Act or under any other statute or at common law or
otherwise, and, except as hereinafter provided, will reimburse each such
Holder, each such underwriter and each such controlling person, if any,
for any legal or other expenses reasonably incurred by them or any of
them, as such expenses are incurred, in connection with investigating or
defending any actions whether or not resulting in any liability, insofar
as such losses, claims, damages, expenses, liabilities or actions arise
out of or are based upon (i) any untrue statement or alleged untrue
statement of a material fact contained in the registration statement, in
any preliminary or amended preliminary prospectus or in the prospectus
(or the registration statement or prospectus as from time to time amended
or supplemented by the Company); (ii) any omission or alleged omission to
state therein a material fact required to be stated therein or necessary
in order to make the statements therein not misleading; or (iii) any
violation by the Company of the Securities Act, the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), a state securities law or
any rule or regulation under the Securities Act, the Exchange Act or any
state securities law; provided, however, that the indemnity contained in
this Section 2.4(a) will not apply where such untrue statement or
omission was made in such registration statement, preliminary or amended,
preliminary prospectus or prospectus in reliance upon and in conformity
with information furnished in writing to the Company in connection
therewith by such Holder of Registrable Shares, any such underwriter or
any such controlling person expressly for use therein or arises from such
Holder's breach of its obligations under this Agreement. Promptly after
receipt by any Holder of Registrable Shares, any underwriter or any
controlling person of notice of the commencement of any action in respect
of which indemnity may be sought against the Company, such Holder of
Registrable Shares, or such underwriter or such controlling person, as
the case may be, will notify the Company in writing of the commencement
thereof, and, subject to the provisions hereinafter stated, the Company
shall assume the defense of such action (including the employment of
counsel, who shall be counsel reasonably satisfactory to such Holder of
Registrable Shares, such underwriter or such controlling person, as the
case may be), and the payment of expenses insofar as such action shall
relate to any alleged liability in respect of which indemnity may be
sought against the Company. Such Holder of Registrable Shares, any such
underwriter or any such controlling person shall have the right to employ
separate counsel in any such action and to participate in the defense
thereof in the event the representation of such Holder, underwriter or
controlling person by counsel retained by or on the behalf of the Company
would be inappropriate due to conflicts of interest between any such
person and any other party represented by such counsel in such proceeding
or action, in which case the Company shall pay, as incurred, the
reasonable fees and expenses of such separate counsel. The Company shall
not be liable to indemnify any person under this Section 2.4(a) for any
settlement of any such action effected without the Company's consent
(which consent shall not be unreasonably withheld). The Company shall
not, except with the approval of each party being indemnified under this
Section 2.4(a) (which approval will not be unreasonably withheld),
consent to entry of any judgment or enter into any settlement that does
not include as an unconditional term thereof the giving by the claimant
or plaintiff to the parties being so indemnified of a release from all
liability in respect to such claim or litigation.
(b) Indemnification of Company. In the event that the Company
registers any of the Registrable Shares under the Securities Act, each
Holder of the Registrable Shares so registered will indemnify and hold
harmless the Company, each of its directors, each of its officers who
have signed the registration statement, each underwriter of the
Registrable Shares so registered (including any broker or dealer through
which any of such shares may be sold) and each person, if any, who
controls the Company within the meaning of Section 15 of the Securities
Act and all other Holders and their respective officers, directors and
controlling persons from and against any and all losses, claims, damages,
expenses or liabilities (or any action in respect
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thereof), joint or several, to which they or any of them may become
subject under the Securities Act or under any other statute or at common
law or otherwise, and, except as hereinafter provided, will reimburse the
Company and each such director, officer, underwriter or controlling
person for any legal or other expenses reasonably incurred by them or any
of them, as such expenses are incurred, in connection with investigating
or defending any actions whether or not resulting in any liability,
insofar as such losses, claims, damages, expenses, liabilities or actions
arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in the registration statement, in
any preliminary or amended preliminary prospectus or in the prospectus
(or the registration statement or prospectus as from time to time amended
or supplemented) 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 in order to make the statements therein not
misleading, but only insofar as any such statement or omission was made
in reliance upon and in conformity with information furnished in writing
to the Company in connection therewith by such Holder, expressly for use
therein; provided, however, that such Holder's obligations hereunder
shall be limited to an amount equal to the proceeds to such Holder of the
Registrable Shares sold in such registration. Promptly after receipt of
notice of the commencement of any action in respect of which indemnity
may be sought against such Holder of Registrable Shares, the Company will
notify such Holder of Registrable Shares in writing of the commencement
thereof, and such Holder of Registrable Shares shall, subject to the
provisions hereinafter stated, assume the defense of such action
(including the employment of counsel, who shall be counsel reasonably
satisfactory to the Company) and the payment of expenses insofar as such
action shall relate to the alleged liability in respect of which
indemnity may be sought against such Holder of Registrable Shares. The
Company and each such director, officer, underwriter or controlling
person shall have the right to employ separate counsel in any such action
and to participate in the defense thereof in the event the representation
of the Company, any of its officers or directors or any underwriter or
controlling person by counsel retained by or on the behalf of such Holder
would be inappropriate due to conflicts of interest between any such
person and any other party represented by such counsel in such proceeding
or action, in which case such Holder shall pay, as incurred, the
reasonable fees and expenses of such separate counsel. Such Holder shall
not be liable to indemnify any person for any settlement of any such
action effected without such Holder's consent (which consent shall not be
unreasonably withheld). Such Holder shall not, except with the approval
of the person being indemnified (which approval shall not be unreasonably
withheld), consent to entry of any judgment or enter into any settlement
that does not include as an unconditional term thereof the giving by the
claimant or plaintiff to the party being so indemnified of a release from
all liability in respect to such claim or litigation.
2.5 CONTRIBUTION. If the indemnification provided for in Section
2.4 is held by a court of competent jurisdiction to be unavailable to an
indemnified party with respect to any loss, liability, claim, damage, or expense
referred to therein, then the indemnifying party, in lieu of indemnifying such
indemnified party hereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such loss, liability, claim, damage, or
expense in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the other
in connection with the statements or omissions that resulted in such loss,
liability, claim, damage, or expense as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information, and opportunity to correct or prevent such
statement or omission, provided, that the maximum liability of a Holder shall be
limited to an amount equal to the proceeds to such holder of the Registrable
Securities Sold in such registration. No person or entity guilty
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of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) will be entitled to contribution from any person or entity who
was not guilty of such fraudulent misrepresentation.
2.6 EXCHANGE ACT REGISTRATION. With a view to making available to
the Holders the benefits of Rule 144 promulgated under the Act and any other
rule or regulation of the Securities Exchange Commission (the "SEC") that may at
any time permit a Holder to sell securities of the Company to the public without
registration, the Company agrees to:
(a) make and keep public information available, as those terms
are understood and defined in SEC Rule 144, at all times after ninety
(90) days after the effective date of the first registration statement
filed by the Company for the offering of its securities to the general
public;
(b) file on a timely basis with the Securities and Exchange
Commission all information that the Commission may require under either
of Section 13 or Section 15(d) of the Exchange Act and, so long as it is
required to file such information, take all action that may be required
as a condition to the availability of Rule 144 under the Securities Act
(or any successor exemptive rule hereinafter in effect) with respect to
the Company's common stock; and
(c) furnish to any Holder forthwith upon request (i) a written
statement by the Company as to its compliance with the reporting
requirements of Rule 144, (ii) a copy of the most recent annual or
quarterly report of the Company as filed with the Securities and Exchange
Commission, and (iii) any other reports and documents that a Holder may
reasonably request in order to avail itself of any rule or regulation of
the Securities and Exchange Commission allowing a Holder to sell any such
Registrable Shares without registration.
2.7 FURTHER OBLIGATIONS OF THE COMPANY. Whenever the Company is
required hereunder to register Registrable Shares, it agrees that it shall also
do the following:
(a) Furnish to each selling Holder such copies of each
preliminary and final prospectus and any other documents that such Holder
may reasonably request to facilitate the public offering of its
Registrable Shares;
(b) Use its best efforts to register or qualify the
Registrable Shares to be registered pursuant to this Agreement under the
applicable securities or "blue sky" laws of such jurisdictions as any
selling Holder may reasonably request; provided, however, that the
Company shall not be obligated to qualify to do business in any
jurisdiction where it is not then so qualified or to take any action that
would subject it to the service of process in suits other than those
arising out of the offer or sale of the securities covered by the
registration statement in any jurisdiction where it is not then so
subject;
(c) Notify each Holder of Registrable Shares covered by such
registration statement at any time when a prospectus relating thereto is
required to be delivered under the Act of the happening of any event as a
result of which the prospectus included 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 the light of the
circumstances then existing and then use its reasonable best efforts to
correct promptly such statement or omission;
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(d) Cause all such Registrable Shares registered hereunder to be
listed on each securities exchange on which similar securities issued by
the Company are then listed if such listing is then permitted under the
rules of the exchange;
(e) Provide a transfer agent and registrar for all Registrable
Shares registered pursuant hereunder and a CUSIP number for all such
Registrable Shares, in each case not later than the effective date of
such registration;
(f) In the event of any underwritten public offering, enter into
and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering. Each
Holder participating in such underwriting shall also enter into and
perform its obligations under such an agreement;
(g) Furnish, at the request of any Holder requesting registration
of Registrable Shares pursuant to this Section 2, on the date that such
Registrable Shares are delivered to the underwriters for sale in
connection with a registration pursuant to this Section 2, if such
securities are being sold through underwriters, or, if such securities
are not being sold through underwriters, on the date that the
registration statement with respect to such securities becomes effective:
(i) an opinion, dated such date, of the counsel representing
the Company for the purposes of such registration, in form and
substance as is customarily given to underwriters in an underwritten
public offering, addressed to the underwriters, if any, and to the
Holders requesting registration of Registrable Shares; and
(ii) "comfort" letters signed by the Company's independent
public accountants who have examined and reported on the Company's
financial statements included in the registration statement, to the
extent permitted by the standards of the American Institute of
Certified Public Accountants, covering substantially the same matters
with respect to the registration statement (and the prospectus
included therein) and (in the case of the accountants' "comfort"
letters) with respect to events subsequent to the date of the
financial statements, as are customarily covered in opinions of
issuer's counsel and in accountants' "comfort" letters delivered to
the underwriters in underwritten public offerings of securities, but
only if and to the extent that the Company is required to deliver or
cause the delivery of such opinion or "comfort" letters to the
underwriters in an underwritten public offering of securities;
(iii) Permit each selling Holder or its counsel or other
representatives upon the receipt of commercially reasonable
confidentiality agreements, to inspect and copy such corporate
documents and records as may reasonably be requested by them; and
(iv) Furnish to each selling Holder, upon request, a copy of
all documents filed and all correspondence from or to the Securities
and Exchange Commission in connection with any such offering unless
confidential treatment of such information has been requested of the
Securities and Exchange Commission.
2.8 EXPENSES. In the case of a registration under this Agreement, the
Company shall bear all costs and expenses of each such registration, including,
but not limited to, printing, legal and accounting expenses, Securities and
Exchange Commission filing fees and "blue sky" fees and expenses; provided,
however, that the Company shall have no obligation to pay or otherwise bear (i)
any portion of the fees or disbursements of more than one counsel for the
Holders in connection with the registration of
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their Registrable Shares, which in no event shall exceed a reasonable fee, (ii)
any portion of the underwriter's commissions or discounts attributable to the
Registrable Shares being offered and sold by the Holders of Registrable Shares,
or (iii) any of such expenses if the payment of such expenses by the Company is
prohibited by the laws of a state in which such offering is qualified and only
to the extent so prohibited.
2.9 TRANSFER OF REGISTRATION RIGHTS. A Holder may assign, transfer or
participate all or any portion of the rights hereunder; provided that (1) such
transfers comply with all applicable law, (2) no such transfer is made to a
competitor of the Company (unless all common and preferred stock in the Company
is being transferred to such competitor in such transaction), and (3) no such
transfer is made to a third party which the Board of Directors of the Company
determines in good faith would be detrimental to the Company as a shareholder;
provided that (i) any such permitted transferee agrees to become a party to this
Agreement, and (ii) such transfer is exempt from registration under the
Securities Act of 1933. For purposes of this Section 2.9, "competitor of the
Company" means a company whose principal lines of business include
business-to-business electronic procurement services. The third proviso of the
preceding sentence shall not apply to a transfer made to an affiliated fund or
entity or a partner or member of any Holder which has that relationship with a
Holder at the time of the Closing or to a family trust or descendant of any such
person.
2.10 TERMINATION OF REGISTRATION RIGHTS. The obligations of the
Company to register any Holder's Registrable Shares pursuant to this Section 2
shall terminate five (5) years after the date hereof or, with respect to any
Holder, at such time as all of the Registrable Securities of such Holder may be
sold within a three month period under Securities and Exchange Commission Rule
144.
2.11 NO SUPERIOR RIGHTS. The Company shall not (i) enter into any
agreement granting registration rights with respect to its securities which are
inconsistent with or superior to the rights granted to the Purchasers hereunder
or (ii) amend any agreement in effect as of the date hereof which grants
registration rights to any other person or entity so as to cause such
registration rights to be inconsistent with those granted to the Purchasers of
Registrable Securities hereunder.
2.12 ASSIGNABILITY. Subject to the restrictions on transfer set forth
in Section 2.9, this Agreement shall be binding upon and inure to the benefit of
the respective heirs, successors and assigns of the parties hereto.
2.13 LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of California; provided, however, that if
any California law or laws require or permit the application of the laws of any
other jurisdiction to this Agreement, such California law or laws shall be
disregarded with the effect that the remaining laws of the State of California
shall nonetheless apply.
2.14 AMENDMENT. Any modification, amendment, or waiver of this
Agreement or any provision hereof, either retroactively or prospectively, shall
be in writing and executed by the Company and the Holders of not less than a
majority of the Registrable Shares which shall be binding upon all of the
parties hereto; provided however, that any amendment, modification or waiver
that would adversely affect the rights hereunder of any Purchaser, without
similarly affecting the rights hereunder of all of the Purchasers, shall not be
effective as to such Purchaser without such Purchaser's prior written consent.
2.15 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.
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2.16 NOTICE. Any notices and other communications required or
permitted under this Agreement shall be effective if in writing and delivered
personally or sent by telecopier, nationally recognized overnight courier or
registered or certified mail, postage prepaid, addressed as follows:
If to the Purchasers, to: The names and addresses
set forth on Exhibit A hereto.
If to the Company, to: Vsource, Inc.
0000 Xxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxx, Xxxxxxxxxx 00000
Attention: Xxxxxx X. XxXxxxxxx
Facsimile: (000) 000-0000
with a copy to: Sheppard, Mullin, Xxxxxxx & Hampton LLP
000 Xxxx Xxxxxx Xxxxx, 0xx Xxxxx
Xxxxx Xxxx, Xxxxxxxxxx 00000
Attention: Xxxx X. Xxxxxxxxxx, Esq.
Facsimile: (000) 000-0000
Unless otherwise specified herein, such notices or other communications
shall be deemed effective (a) on the date delivered, if delivered personally,
(b) two business days after being sent, if sent by nationally recognized
overnight courier, (c) one business day after being sent, if sent by telecopier
with confirmation of good transmission and receipt, and (d) three business days
after being sent, if sent by registered or certified mail, postage prepaid. Each
of the parties herewith shall be entitled to specify another address by giving
notice as aforesaid to each of the other parties hereto.
2.17 SEVERABILITY. In case any provision of this Agreement shall be
invalid, illegal, or unenforceable, it shall, to the extent practicable, be
modified so as to make it valid, legal and enforceable and to retain as nearly
as practicable the intent of the parties; and the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.
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[This is page 11 to the Registration Rights Agreement to which Vsource, Inc., a
Nevada corporation, and the Purchasers set forth below are parties:]
IN WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be executed by their respective officers thereunto duly
authorized, as of the date first above written.
VSOURCE, INC.
By:
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Xxxxxx X. XxXxxxxxx
Chief Executive Officer
"PURCHASER"
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EXHIBIT A
NAME AND ADDRESS # OF SHARES PURCHASE
OF PRICE
PURCHASER
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