Document:

Exhibit 10.4

NESS TECHNOLOGIES, INC.

FIRST
AMENDMENT

TO

SECOND AMENDED AND RESTATED REGISTRATION RIGHTS
AGREEMENT

This FIRST AMENDMENT TO
SECOND AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Amendment”),
dated as of September 2, 2004, amends that certain Second Amended and Restated
Registration Rights Agreement dated as of June 30, 2003 (the “Agreement”) among
the Investors listed on Schedule I thereto and Ness Technologies, Inc., a
Delaware corporation (the “Company”). 
Capitalized terms not otherwise defined herein have the meanings
ascribed thereto in the Agreement.

R  E  C  I  T  A  L
S

WHEREAS, the Company is
contemplating an initial public offering of its shares of Common Stock,
underwritten by Lehman Brothers Inc. and/or Merrill Lynch, Pierce, Fenner &
Smith Incorporated, to be effective no later than December 31, 2004 (the “2004
IPO”);

WHEREAS, in contemplation
of the 2004 IPO, the parties hereto wish to amend the Agreement to revise the
cut back provisions applicable to an Initial Public Offering of the Company’s
securities;

WHEREAS, this Amendment
affects neither the GLY Registration Rights Agreement nor the Velston
Registration Rights Agreement; and

WHEREAS,
the undersigned are Investors holding, in the aggregate, at least a majority of
the currently outstanding Registrable Securities and can, therefore, together
with the Company, effect this Amendment to the Agreement.

NOW, THEREFORE, in
consideration of the premises and the covenants and agreements herein
contained, the parties hereto, intending to be legally bound, hereby agree as
follows:

1.     Section 2(b)(ii) of the Agreement shall be
amended and restated in its entirety to read as follows:

“Underwriting. 
If the registration of which the Company gives notice is for a
registered public offering involving an underwriting, the Company shall so
advise each of the Holders as a part of the written notice given pursuant to
Section 2(b)(i)(A).  In such event, the
right of each of the Holders to registration pursuant to this Section 2(b)
shall be conditioned upon such Holders’ participation in such underwriting and
the inclusion of such Holders’ Registrable Securities in the underwriting to
the extent provided herein.  The Holders
whose shares are to be included in such registration shall (together with the
Company and the Other Stockholders distributing their securities through such
underwriting) enter into an underwriting agreement in customary form with the
representative of the underwriter or underwriters selected for underwriting by
the Company.  Notwithstanding any other
provision of this Section 2(b), if the representative determines that marketing
factors require a limitation on the number of shares to be underwritten,

 

 

the Company shall
so advise all holders of securities requesting registration, and the number of
shares that are entitled to be included in the registration and underwriting
shall be allocated as follows:

 

(A) if such registration is the Initial Public
Offering, the representative may exclude from such registration and underwriting
some or all of the Registrable Securities which would otherwise be underwritten
in the following manner: First, the securities of the Company held by officers,
directors, Holders and Other Stockholders of the Company (other than the shares
of Common Stock issuable upon conversion of the Class C Preferred Stock, the
shares of Common Stock issuable as payment of accrued dividend on the Class B
Preferred Stock and 20% of the shares of Common Stock issuable upon conversion
of the Class B Preferred Stock), on a pro rata basis (based on the number of
such shares requested to be registered by such stockholder), to the extent
required by such limitation. Second, if a limitation on the number of shares is
still required, the number of shares of Common Stock issuable as payment of
accrued dividend on the Class B Preferred Stock and the remaining 20% of the
shares of Common Stock issuable upon conversion of the Class B Preferred Stock,
on a pro rata basis (based on the number of such shares requested to be registered
by such Holder), to the extent required by such limitation. Third, if a
limitation on the number of shares is still required, the number of shares of
Common Stock issuable upon conversion of the Class C Preferred Stock, on a pro
rata basis (based on the number of such shares requested to be registered by
such Holder), by such minimum number of shares as is necessary to comply with
such limitation; and

 

(B) if such
registration is other than the Initial Public Offering, the representative may
limit the number of Registrable Securities to be included in the registration
and underwriting to not less than twenty five percent (25%) of the shares
included therein (based on the number of shares) and may exclude the shares to
be included in the registration and underwriting in the following manner:  First, the securities of the Company held by
officers, directors and Other Stockholders of the Company (other than
Registrable Securities and securities that are subject to the Priority
Agreements and other than Holders who by contractual right demanded such
registration (“Demanding Holders”)) to the extent required by such limitation.
Second, if a limitation on the number of shares is still required, the shares
that may be included in the registration and underwriting by each of the
Holders and Demanding Holders (other than persons entitled to the benefit of
the Priority Agreements with respect to the securities covered thereby), on a
pro rata basis (based on the number of shares held by such Holder), as is
necessary to comply with such limitation.

If any of the Holders or any officer, director or
Other Stockholder disapproves of the terms of any such underwriting, he may
elect to withdraw therefrom by written notice to the Company and the
underwriter.  Any Registrable Securities
or other securities excluded or withdrawn from such underwriting shall be
withdrawn from such registration.”

 

2.     This Amendment shall be effective upon
execution by the Company and Investors holding the requisite number of
Registrable Securities; provided, however, that this Amendment
shall be null and void in the event that the 2004 IPO is not consummated on or
before December 31, 2004.

 

3.     This Amendment may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

4.     This Amendment shall be governed by and
construed in accordance with the laws of the State of New York applicable to
contracts made and to be performed entirely within such State.

5.     The Agreement is amended hereby solely as
specifically set forth herein, subject to the conditions set forth herein and,
as so amended, the Agreement continues in full force and effect.

 

 

 

 

[SIGNATURE PAGES
FOLLOW]

 

 

 

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED
REGISTRATION RIGHTS AGREEMENT]

 

IN WITNESS WHEREOF, the
undersigned have executed this Amendment as of the date first set forth above.

	
  NESS TECHNOLOGIES, INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  INVESTORS:

  
	
   

  
	
  NESSTECH LLC

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  WARBURG, PINCUS EQUITY PARTNERS, L.P.

  
	
   

  
	
  By:

  	
  WARBURG, PINCUS & CO., General Partner

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  WARBURG, PINCUS NETHERLANDS EQUITY PARTNERS I, C.V.

  
	
   

  
	
  By:

  	
  WARBURG, PINCUS & CO., General Partner

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  

 

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED
REGISTRATION RIGHTS AGREEMENT]

 

IN WITNESS WHEREOF, the
undersigned have executed this Amendment as of the date first set forth above.

	
  WARBURG, PINCUS NETHERLANDS EQUITY PARTNERS II, C.V.

  
	
   

  	
   

  
	
  By:

  	
  WARBURG, PINCUS & CO., General Partner

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  WARBURG, PINCUS NETHERLANDS EQUITY PARTNERS III,
  C.V.

  
	
   

  
	
  By:

  	
  WARBURG, PINCUS & CO., General Partner

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  WARBURG, PINCUS VENTURES INTERNATIONAL, L.P.

  
	
   

  
	
  By:

  	
  WARBURG, PINCUS & CO., General Partner

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  WARBURG, PINCUS
  VENTURES, L.P.

  
	
   

  
	
  By:

  	
  WARBURG, PINCUS & CO., General Partner

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED REGISTRATION
RIGHTS AGREEMENT]

 

IN WITNESS WHEREOF, the
undersigned have executed this Amendment as of the date first set forth above.

	
  GOWRON (INTERNATIONAL) LIMITED

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  GMUL-AMGAL INVESTMENTS LTD.

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  G.L.Y. HIGH-TECH INVESTMENTS INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  VELSTON PTE. LTD.

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  SOCRATES TRUSTS LTD.

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED
REGISTRATION RIGHTS AGREEMENT]

 

IN WITNESS WHEREOF, the
undersigned have executed this Amendment as of the date first set forth above.

	
  PROF. LEVY TRUSTS LTD. TO BE HELD IN TRUST FOR THE
  BENEFIT OF MICHAEL BRAIMAN

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  JOHN AUGUST ROLLWAGEN

  
	
   

  
	
   

  
	
  ERWIN KELEN FAMILY LTD. PARTNERSHIP

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED
REGISTRATION RIGHTS AGREEMENT]

 

            IN WITNESS WHEREOF, the undersigned have executed this
Amendment as of the date first set forth above.

 

	
   

  
	
  ESTHER DYSON

  
	
   

  
	
   

  
	
  GEOFF SQUIRE

  
	
   

  
	
   

  
	
  PETR NEVICKY

  
	
   

  
	
   

  
	
  INSIGHT CAPITAL PARTNERS II, L.P.

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  INSIGHT CAPITAL PARTNERS (CAYMAN) II, L.P.

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  WI SOFTWARE INVESTORS LLC

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
   

  
	
  MANFRED JOSEPH

  

 

 

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED
REGISTRATION RIGHTS AGREEMENT]

 

                IN WITNESS
WHEREOF, the undersigned have executed this Amendment as of the date first set
forth above.

 

	
   

  
	
  ROBERT GLANVILLE

  
	
   

  
	
   

  
	
  BEN TANDOWSKI

  
	
   

  
	
   

  
	
  NATHAN SCHLEIFER

  
	
   

  
	
   

  
	
  ANDREW WRIGHT

  
	
   

  
	
   

  
	
  THOMAS  W.
  GENEGA

  
	
   

  
	
   

  
	
  DAVID JAROSLAWICZ

  
	
   

  
	
   

  
	
  IRENE MATH

  
	
   

  
	
   

  
	
  DAVID I. KUBERSKY

  
	
   

  
	
   

  
	
  JOSEPH C. FUNG

  
	
   

  
	
   

  
	
  JEANNE M. O’BYRNE

  
	
   

  
	
   

  
	
  MARTIN R. SCHUCHMAN

  
	
   

  
	
   

  
	
  KENNETH M. HARNEY

  
	
   

  
	
   

  
	
  MITCHELL MOND

  

 

 

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED
REGISTRATION RIGHTS AGREEMENT]

 

                IN WITNESS
WHEREOF, the undersigned have executed this Amendment as of the date first set
forth above.

 

	
   

  
	
  CHRIS P. KARTCHNER

  
	
   

  
	
   

  
	
  DOUGLAS J. STOCK

  
	
   

  
	
   

  
	
  STEPHEN EMMERICH

  
	
   

  
	
   

  
	
  RUSSELL S. PERLMAN

  
	
   

  
	
   

  
	
  APAR INVESTMENTS (SINGAPORE) PRIVATE LTD.

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  RAJEEV SRIVASTAVA

  
	
   

  
	
   

  
	
  DAVID AND MAURA EDEN JTWRS

  
	
   

  
	
   

  
	
  ALAN MINTZ

  
	
   

  
	
   

  
	
  WILLIAM T. PASQUA

  
	
   

  
	
   

  
	
  GERSHON SONTAGQuickLinks
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Exhibit 4.1    
    

	COMMON STOCK	 	COMMON STOCK
	

(CELLEGY PHARMACEUTICALS, INC. LOGO)
	

INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE
	

SEE REVERSE FOR	
 	

CUSIP 15115L10
	CERTAIN DEFINITIONS	 	 
	

THIS CERTIFIES THAT	
 	

 
	

IS THE OWNER OF	
 	

 

fully
paid and non-assessable shares of COMMON STOCK, of the par value of $.0001 per share, of CELLEGY PHARMACEUTICALS, INC, transferable on the books of the Corporation by the holder
hereof in person or by duly authorized attorney upon surrender of this Certificate properly endorsed. 

        This
Certificate is not valid unless countersigned by the Transfer Agent and registered by the Registrar. Witness the facsimile seal of the Corporation and the facsimile signatures of
its duly authorized officers. 

(CELLEGY
PHARMACEUTICALS, INC SEAL) 

Dated

	/s/  A.RICHARD JUELIS      
 SECRETARY	 	/s/  K. MICHAEL FORREST      
 CHIEF EXECUTIVE OFFICER

COUNTERSIGNED
AND REGISTERED:

                MELLON INVESTOR SERVICES LLC

                                TRANSFER AGENT AND REGISTRAR 

	BY:	
 AUTHORIZED SIGNATURE	 

CELLEGY
PHARMACEUTICALS, INC. 

        THE
CORPORATION WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS A STATEMENT OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER
SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES THEREOF OF THE CORPORATION, AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS. SUCH REQUEST MAY BE MADE TO THE
CORPORATION OR THE TRANSFER AGENT. 

        The
following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or
regulations: 

	TEN COM-	 	as tenants in common
	TEN ENT-	 	as tenants by the entireties
	JT TEN-	 	as joint tenants with right of survivorship and Not as tenants in common

	

UNIF GIFT MIN ACT-	
 	

	
 	

Custodian	
 	

	 	 	(Cust)	 	 	 	(Minor)

	

 	
 	

under Uniform Gifts to Minors Act
	

 	
 	

	 	 	(State)

	

UNIF GIFT MIN ACT-	
 	

	
 	

Custodian (until age	
 	

	
 	

)
	 	 	(Cust)	 	 	 	 	 	 
	 	 	
	 	under Uniform Transfer to Minors Act
	 	 	(Minor)	 	 	 	 	 	 

	

 	
 	

 (State)

        Additional
abbreviations may also be used though not in the above list. 

For
Value received,                          hereby sell, assign and transfer unto 

PLEASE
INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE 

PLEASE
PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE 

Shares
of the capital stock represented by the within Certificate, and do hereby irrevocably constitute and appoint 

Attorney
to transfer the said stock on the books of the within-named Corporation with full power of substitution in the premises. 

Dated,

	 	 	X	 	

	

 	
 	

NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE, IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE WHATEVER.
	

SIGNATURE GUARANTEED:	
 	

 
	

 	
 	

	

 	
 	

THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARRANTEE MEDALLON PROGRAM)

PURSUANT TO S.E.C. RULE 17Ad-15.

QuickLinks

Exhibit 4.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]