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Exhibit 10.77    
  

 
  VCAMPUS CORPORATION
  SECURITIES PURCHASE AGREEMENT    
  

        This Securities Purchase Agreement (the "Agreement") is entered into as of the 30th day of September 2002, by and among VCampus Corporation, a Delaware
corporation (the "Company"), and the purchasers listed on Exhibit A hereto (the "Purchasers"). 

        WHEREAS, the Company desires to enter into this Agreement with the Purchasers to sell and issue preferred stock and warrants to the
Purchasers; and 

        WHEREAS, the Purchasers desire to enter into this Agreement to acquire preferred stock and warrants of the Company on the terms and
conditions set forth herein; 

        NOW, THEREFORE, in consideration of the mutual promises, representations, warranties, covenants and conditions set forth in this
Agreement, the parties to this Agreement mutually agree as follows: 

        1.    Authorization and Sale.    

        1.1    Authorization.    The Company has authorized the issuance and
sale to the Purchasers of: 

	(a)
	A
sufficient number of shares of its Series G Convertible Preferred Stock, $0.01 par value per share (the "Series G Preferred Stock"), having substantially the rights,
preferences, privileges and restrictions set forth in the Certificate of Designations of Series G Convertible Preferred Stock in substantially the form attached hereto as  Exhibit B (the
"Certificate of Designations"), in order to raise approximately $1,000,000; and

	(b)
	warrants
for the purchase of a number of shares of common stock equal to 25% of the number of shares of common stock initially issuable upon conversion of the Series G
Preferred Stock purchased hereunder, in substantially the form attached hereto as Exhibit C (the "Warrants"). 

        1.2    Sale.    Subject to the terms and conditions hereof, each
Purchaser agrees to purchase from the Company, and the Company agrees to sell and issue to such Purchaser, the number of shares of Series G Preferred Stock at a per share purchase price of
$21.96 (the "Shares") and the number of Warrants to purchase shares of common stock as set forth on Exhibit A attached hereto. Each share of
Series G Preferred Stock shall initially be convertible into ten (10) shares of common stock. 

        2.    Closings; Delivery.    

        2.1    Closings.    The closing of the purchase and sale of the Shares
and Warrants under this Agreement shall take place at 2:00 p.m. (Eastern time) on September 30, 2002 at the offices of Wyrick Robbins Yates & Ponton LLP, 4101 Lake Boone Trail,
Suite 300, Raleigh, North Carolina, or at such other time and place as the Company and the Purchasers may agree. Additional Purchasers may enter into this Agreement with the Company's consent at
additional closings (each closing hereunder, a "Closing"). 

        2.2    Delivery.    At each Closing, subject to the terms and
conditions hereof, the Company will deliver to the Purchasers certificates representing the Shares and the Warrants to be purchased by the Purchasers from the Company at the Closing, dated the date of
the Closing, against payment of the purchase price therefor payable as of the date of such Closing by wire transfer. 

        3.    Representations and Warranties of the Company.    The Company
hereby represents and warrants to each Purchaser as follows. 

        3.1    Organization and Standing.    The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware, and has all requisite corporate power and authority to own and operate its properties and assets and to carry
on its 

business as now conducted and as currently proposed to be conducted. The Company is duly qualified and authorized to do business, and is in good standing as a foreign corporation, in Virginia and in
each other jurisdiction where the nature of its activities and of its properties makes such qualification necessary, except where a failure to do so would not have a material adverse effect on the
Company. 

        3.2    Capitalization.    The authorized and outstanding capital of
the Company, as of June 30, 2002, consisted of: 1,200,000 shares of Series D Convertible Preferred Stock, $0.01 par value per share, 1,013,809 of which are issued and outstanding;
1,000,000 shares of Series C Convertible Preferred Stock, $0.01 par value per share, 623,339 shares of which are issued and outstanding; 3,000,000 shares of Series E Convertible
Preferred Stock, 552,530 of which are issued and outstanding; 3,000,000 shares of Series F Convertible Preferred Stock, 2,642,836 of which are issued and outstanding; 1,458,413 shares of
Series F-1 Convertible Preferred Stock, all of which are issued and outstanding; 60,000 shares of Series F-2 Preferred Stock, 27,578 of which are issued and
outstanding; 281,587 shares of undesignated
and unissued Preferred Stock, $0.01 par value per share; and 36,000,000 shares of common stock, $0.01 par value per share, 1,522,648 of which were issued and outstanding. Prior to Closing the Company
will have filed the Certificate of Designations for the Series G Preferred Stock in Delaware authorizing up to 80,000 shares of Series G Preferred Stock, none of which will be
outstanding prior to Closing. 

        All
of the outstanding shares of common stock and preferred stock have been duly authorized and validly issued, are fully paid and nonassessable and were issued in compliance with all
applicable federal and state securities laws. The Company has duly and validly reserved (i) the Shares for issuance as contemplated hereby, (ii) a sufficient number of shares of common
stock for issuance upon conversion of the Shares (the "Conversion Shares"), subject to adjustment pursuant to the terms of the Certificate of Designations, and (iii) a sufficient number of
shares of common stock for issuance upon exercise of the Warrants (the "Warrant Shares"). Except for the conversion rights associated with the Series C, D, E, F, F-1,
F-2 and G Preferred Stock and the rights created under this Agreement and except as disclosed in the reports and documents filed by the Company prior to the date of this Agreement under
the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "SEC Filings"), there are no outstanding rights of first refusal, preemptive
rights or other rights, options, warrants, conversion rights or other agreements, either directly or indirectly, for the purchase or acquisition from the Company of any shares of its capital stock. 

        3.3    Authorization.    All corporate action on the part of the
Company and its directors and stockholders necessary for the authorization, execution and delivery of this Agreement, the performance of all the Company's obligations hereunder and thereunder, and the
authorization, issuance, sale and delivery of the Shares, Conversion Shares, the Warrants and the Warrant Shares (collectively, the "Securities") has been taken. This Agreement, when executed and
delivered by the Company and the respective other parties thereto, shall constitute a valid and legally binding obligation of the Company enforceable in accordance with its terms, subject to laws of
general application relating to bankruptcy, insolvency and the relief of debtors, rules and laws governing specific performance, injunctive relief and other equitable remedies. 

        3.4    Validity of the Shares.    The Shares and Warrants, when issued
pursuant to the terms of this Agreement, and the Conversion Shares and Warrant Shares, when issued pursuant to the terms of the Certificate of Designation and the Warrants, will be validly issued, and
fully paid and nonassessable and will be free of any liens or encumbrances; provided, however, that such securities will be subject to restrictions on transfer under state and/or federal securities
laws as set forth herein and subject to certain other restrictions, including restrictions imposed pursuant to Nasdaq Marketplace Rules, as set forth in the Certificate of Designations and the
Warrants. 

        3.5    Compliance with Other Instruments.    The Company is not in
violation of any provisions of its Certificate of Incorporation or its Bylaws as amended, or of any provisions of any material agreement or any judgment, decree or order by which it is bound or any
statute, rule or regulation 

applicable to the Company. Subject to the compliance with such filings as may be required to be made with the SEC, the National Association of Securities Dealers, Inc. (the "NASD") and certain
state
securities commissions, the execution, delivery and performance of this agreement and the issuance and sale of the Shares and Warrants pursuant hereto and, subject to Nasdaq shareholder approval
rules, the issuance of the Conversion Shares and the Warrant Shares pursuant to the Certificate of Designations and the Warrants, respectively, will not result in any such violation or be in conflict
with or constitute a default under any such provisions or result in the creation of any mortgage, pledge, lien, encumbrance or charge upon any of the properties or assets of the Company. 

        3.6    Governmental Consents.    All consents, approvals, orders or
authorization of, or registrations, qualifications, designations, declarations or filings with, any federal or state governmental authority on the part of the Company required in connection with the
valid execution and delivery of this Agreement, the offer, sale or issuance of the Securities, or the consummation of any other transaction contemplated hereby, have been obtained, except for notices
required to be filed with the SEC, the NASD and certain state securities commissions thereafter, which notices will be filed on a timely basis. 

        3.7    Accuracy of Reports.    The SEC Filings required to be filed by
the Company within the year prior to the date of this Agreement under the Securities Exchange Act of 1934 have been duly filed, were in substantial compliance with the requirements of their respective
forms, were complete and correct in all material respects as of the dates at which the information was furnished, and contained (as of such dates) no untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. 

        3.8    Disclosure.    No representation or warranty of the Company
contained in this Agreement contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein, in light of the
circumstances under which they were made, not misleading. 

        4.    Representations and Warranties of the Purchasers.    Each
Purchaser hereby represents and warrants to the Company as follows: 

        4.1    Power and Authority.    It has the requisite power and
authority to enter into this Agreement, to purchase the Securities and to carry out and perform its obligations under the terms of this Agreement. 

        4.2    Due Execution.    This Agreement has been duly authorized,
executed and delivered by it, and, upon due execution and delivery by the Company, will be a valid and binding agreement of it, subject to laws of general application relating to bankruptcy,
insolvency and the relief of debtors, rules and laws governing specific performance, injunctive relief and other equitable remedies. 

        4.3    Investment Representations.    

        (a)  Purchaser
is a resident of the state indicated on the signature page hereof, is legally competent to execute this Agreement, and: 

	(i)
	if
Purchaser is an individual, has his or her principal residence in such state and is at least 21 years of age; or

	(ii)
	if
Purchaser is a corporation, partnership, trust or other form of business organization, has its principal office in such state; or

	(iii)
	if
Purchaser is a corporation, partnership, trust or other form of business organization, Purchaser has not been organized for the specific purpose of
acquiring the Securities. 

        (b)  The
Purchaser has read this Agreement carefully and, to the extent believed necessary, has discussed the representations, warranties and agreements and the applicable
limitations upon the Purchaser's resale of the Securities with counsel. 

        (c)  The
Purchaser understands that no federal or state agency has made any finding or determination regarding the fairness of this offering, or any recommendation or
endorsement of this offering. 

        (d)  The
Purchaser is an "accredited investor" as defined in Rule 501 of Regulation D promulgated under the Act. 

Entities
that are accredited investors under Rule 501 include, among others, certain banks, savings and loan associations, registered securities broker-dealers, insurance companies, registered
investment companies and trusts. Individuals that are accredited investors under Rule 501 include, among others, any natural person whose individual net worth, or joint net worth with that
person's spouse, exceeds $1 million; or who had income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of
those years and who has a reasonable expectation of reaching the same income level in the current year. 

        (e)  The
Purchaser has had access to and has read copies of the Company's SEC Filings and has had an adequate opportunity to ask questions of and receive answers from the
Company regarding these documents and to obtain such other information as the Purchaser desires in order to evaluate an investment in the Securities. 

        (f)    The
Purchaser is financially able to bear the economic risk of this investment, including the ability to afford holding the Securities for an indefinite period, or to
afford a complete loss of its investment. 

        (g)  The
Purchaser is purchasing the Securities for the Purchaser's own account, with the intention of holding the Securities for investment purposes and not for the purpose
of reselling or otherwise participating, directly or indirectly, in a distribution of the Securities, and shall not make any sale, transfer or other disposition of any portion of the Securities
purchased hereby without registration under the Act and any applicable securities act of any state or unless an exemption from registration is available under such acts. 

        (h)  The
Purchaser understands that an investment in the Securities is a highly illiquid investment, and that, the Purchaser will have to bear the economic risk of the
investment indefinitely (or at least until such shares may become registered as provided under this Agreement) because the shares of common stock underlying the Securities have not been registered
under the Act and the Securities are being issued pursuant to a private placement exemption under Regulation D, on the grounds that no public offering is involved. Therefore, the Securities and
the shares of common stock issuable in connection therewith cannot be offered, sold, transferred, pledged or hypothecated to any person, unless either they are subsequently registered under the Act
and applicable state securities laws or an exemption from registration is available and the Purchaser obtains a favorable opinion of the Company's counsel to that effect. 

        (i)    Prior
to registration of the Shares by the Company pursuant to the Registration Rights Agreement referenced in Section 5.6 hereof, the Purchaser understands that
the provisions of Rule 144 promulgated under the Act are not available for at least one (1) year to permit resale of the Securities or the shares of common stock underlying the
Securities, and there can be no assurance that the conditions necessary to permit routine sales of such securities under Rule 144 will ever be satisfied, and, if Rule 144 should become
available, routine sales made in reliance on its provisions could be made only in limited amounts and in accordance with the terms and conditions of the Rule. The Purchaser further understands that in
connection with sales for which Rule 144 is not available, compliance with some other registration exemption will be required, which may not be available. 

        (j)    The
Purchaser understands and agrees that stop transfer instructions will be given to the Company's transfer agent or the officer in charge of its stock records and
noted on the appropriate records of the Company to the effect that the Securities and the shares of common stock issuable upon exercise or conversion thereof may not be transferred out of the
Purchaser's name unless 

either such securities become registered under the Act or it is established to the satisfaction of counsel for the Company that an exemption from the registration provisions of the Act and applicable
state securities laws is available therefore. The Purchaser further agrees that there will be placed on the certificates for the Securities and the underlying common stock, or any substitutions
therefore, a legend stating in substance as follows, that the Purchaser understands and agrees that the Company may refuse to permit the transfer of the stock out of its name and that the stock must
be held indefinitely in the absence of compliance with the terms of such legend. 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES ACT AND MAY NOT BE SOLD, TRANSFERRED OR PLEDGED IN THE
ABSENCE OF SUCH REGISTRATION UNLESS THE CORPORATION RECEIVES AN OPINION OF COUNSEL (WHICH MAY BE COUNSEL FOR THE CORPORATION) REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY BE MADE IN COMPLIANCE
WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS AND REGULATIONS. 

The
Purchaser agrees to indemnify the Company, its directors, officers and employees, and to hold them harmless from and against any and all liability, damages, costs or expenses, including reasonable
attorney fees, on account of or arising out of (i) any inaccuracy in the Purchaser's representations and warranties hereinabove set forth; (ii) the disposition of any Securities or
common stock which it will receive, contrary to its foregoing representations and warranties; and (iii) any action, suit or proceeding based upon either the claim that the Purchaser's
representations or warranties were inaccurate or misleading or otherwise cause for obtaining damages or redress from the Company, its directors, officers or employees, or the disposition of any
portion of the Securities or common stock. 

        4.4    Government Consents.    No consent, approval or authorization
of, or designation, declaration or filing with, any state, federal or foreign governmental authority on the part of such Purchaser because of any special characteristic of such Purchaser is required
in connection with the valid execution and delivery of this Agreement by such Purchaser or the consummation by such Purchaser of the transactions contemplated hereby; provided, however, that such
Purchaser makes no representations as to compliance with applicable state securities laws. 

        5.    Conditions to the Purchaser's Obligations at the Closing.    The
obligations of a Purchaser to purchase the Securities at the Closing are subject to the fulfillment on or before such Closing of each of the following conditions: 

        5.1    Representations and Warranties.    The representations and
warranties of the Company contained in Section 3 shall be true in all material respects on and as of the Closing with the same force and effect as if they had been made at the Closing. 

        5.2    Performance.    The Company shall have performed and complied
in all material respects with all agreements and conditions contained in this Agreement required to be performed or complied with by it on or before the Closing. 

        5.3    Qualifications.    All authorizations, approvals or permits, if
any, of any governmental authority or regulatory body of the United States or of any state that are required prior to and in connection with the lawful issuance and sale of the Securities pursuant to
this Agreement shall have been duly obtained and shall be effective on and as of the Closing. 

        5.4    Legal Investment.    At the time of the Closing, the purchase
of the Securities by the Purchaser hereunder shall be legally permitted by all laws and regulations to which it or the Company is subject. 

        5.5    Proceedings and Documents.    All corporate and other
proceedings in connection with the transactions contemplated at the Closing hereby and all documents and instruments incident to such transactions shall be reasonably satisfactory in substance and
form to the Purchaser, and the 

Purchaser shall have received all such counterpart originals or certified or other copies of such documents as it may reasonably request. 

        5.6    Registration Rights Agreement.    The Company shall have
executed and delivered a Registration Rights Agreement to the Purchaser, in substantially the form attached hereto as Exhibit D, granting
registration rights with respect to the Conversion Shares and the Warrant Shares. 

        6.    Conditions to the Company's Obligations at the Closing.    The
obligations of the Company to issue and sell Securities at the Closing are subject to the fulfillment on or before the Closing of each of the following conditions: 

        6.1    Representations and Warranties.    The representations and
warranties of the Purchasers contained in Section 4 shall be true in all material respects on and as of the Closing with the same force and effect as if they had been made at the Closing. 

        6.2    Performance.    The Purchasers shall have performed and
complied in all material respects with all agreements and conditions contained in this Agreement required to be performed or complied with by them on or before the Closing. 

        6.3    Qualifications.    All authorizations, approvals or permits, if
any, of any governmental authority or regulatory body of the United States or of any state that are required prior to and in connection with the lawful issuance and sale of the Securities pursuant to
this Agreement shall have been duly obtained and shall be effective on and as of the Closing. 

        6.4    Legal Investment.    At the time of the Closing, the purchase
of the Securities by the Purchasers hereunder shall be legally permitted by all laws and regulations to which it or the Company is subject. 

        7.    Miscellaneous.    

        7.1    Entire Agreement; Effectiveness.    This Agreement and the
documents referred to herein constitute the entire agreement among the parties, and no party shall be liable or bound to any other party in any manner by any warranties, representations or covenants
except as specifically set forth herein or therein. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. Nothing in
this Agreement, express or implied, is intended to confer upon any third party any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in
this Agreement. 

        7.2    Governing Law.    This Agreement shall be governed by and
construed under the laws of the State of Delaware as applied to agreements among Delaware residents, made and to be performed entirely within the State of Delaware. 

        7.3    Counterparts; Facsimiles.    This Agreement may be executed in
two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery by facsimile transmission of a signature page
hereto shall constitute execution hereof. 

        7.4    Headings.    The headings used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement. 

        7.5    Notices.    Any notice required or permitted under this
Agreement shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit with the United States Post Office, by registered or certified mail, postage prepaid,
or sent by confirmed telecopy, addressed (a) if the Company, at: 

VCampus
Corporation

1850 Centennial Park Drive, Suite 200

Reston, Virginia 20191

Attention: Chief Financial Officer 

With
a copy to:

Kevin A. Prakke, Esq.

Wyrick Robbins Yates & Ponton LLP

4101 Lake Boone Trail, Suite 300

Raleigh, North Carolina 27607-7506 

or
at such other address as the Company shall have furnished to a Purchaser in writing, and (b) if to a Purchaser, at its address on the books and records of the Company. 

        7.6    Attorneys' Fees.    Should any litigation or arbitration be
commenced between the parties hereto concerning this Agreement, the party prevailing in such litigation or arbitration shall be entitled, in addition to such other relief as may be granted, to a
reasonable sum for attorneys' fees and costs in such litigation or arbitration, which fees and costs shall be determined by the court or arbitrator, as the case may be. 

        7.7    Survival.    The representations, warranties, covenants and
agreements made herein shall survive any investigation made by any Purchaser and the Closing. All statements as to factual matters contained in any certificate or other instrument delivered by or on
behalf of the Company pursuant hereto or in connection with the transactions contemplated hereby shall be deemed to be representations and warranties made by the Company hereunder as of the date of
such certificate or instrument. 

        7.8    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. 

        7.9    Delays or Omissions.    No delay or omission to exercise any
right, power or remedy accruing to the Company or a Purchaser or any subsequent holder of any Securities upon any breach, default or noncompliance of a Purchaser, any subsequent holder of any
Securities or the Company under this Agreement, the Certificate of Designations or the Warrant shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such
breach, default or noncompliance, or any acquiescence therein, or of any similar breach, default or noncompliance thereafter occurring. It is further agreed that any waiver, permit, consent or
approval of any kind or character on the part of the Company or a Purchaser of any breach, default or noncompliance under this Agreement, the Certificate of Designations or the Warrant or any waiver
on the Company's or a Purchaser's part of any provisions or conditions of this Agreement must be in writing and shall be effective only to the extent
specifically set forth in such writing and that all remedies, either under this Agreement, the Certificate of Designations or the Warrants, by law, or otherwise afforded to the Company and the
Purchasers, shall be cumulative and not alternative. 

        7.10    Information Confidential.    Each Purchaser acknowledges that
this Agreement and all attachments hereto are confidential and for such Purchaser's use only, and it will refrain from using such information and any Company confidential information obtained by it
pursuant to this Agreement (collectively, "Confidential Information") or reproducing, disclosing or disseminating Confidential Information to any other person (other than its employees, affiliates,
agents or partners having a need to know the contents of such information and its attorneys), except in connection with the enforcement of rights under this Agreement, unless the Company has made such
information available to the public generally or it is required by a governmental body to disclose such information. 

        7.11    Amendments and Waivers.    Except as otherwise expressly
provided herein, any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance, either retroactively or
prospectively and either for a specified period of time or indefinitely) with the written consent of the Company and the Purchaser to be bound, or persons holding a majority of the Securities, on an
as-converted to or 

exercised for common stock basis. Any amendment or waiver effected in accordance with this Section shall be binding upon the Purchaser and each transferee of the Securities. 

        7.12    Expenses.    The Company and each Purchaser shall be
responsible for its own costs and expenses, including "due diligence" investigation and attorneys' fees and expenses, incurred in connection with the preparation, execution and delivery of this
Agreement and other related documentation. 

The Next Page is the Signature Page.  

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

	COMPANY:	VCAMPUS CORPORATION
	

	

 	
 	

 
	 	
 Daniel J. Neal,

Chief Executive Officer
	
PURCHASER:	

 	
 	

 
	 	

	

 	

By:	
 	

 
	 	 	 	

	

 	

Name:	
 	

 
	 	 	 	

	

 	

Title:	
 	

 
	 	 	 	

 
 

EXHIBIT A    
    
    SCHEDULE OF PURCHASERS    
  

	Purchasers
	 	Amount Invested
	 	Series G

Shares
	 	Common Stock

Initially Issuable

Upon Conversion
	 	Warrants

	

	
 	

 	
 	

 	
 	

 	
 	

 
	

	
 	

 	
 	

 	
 	

 	
 	

 
	

	
 	

 	
 	

 	
 	

 	
 	

 
	

	
 	

 	
 	

 	
 	

 	
 	

 
	

	
 	

 	
 	

 	
 	

 	
 	

 
	

	
 	

 	
 	

 	
 	

 	
 	

 
	

	
 	

 	
 	

 	
 	

 	
 	

 
	Totals:	 	 	 	 	 	 	 	 

 
 

EXHIBIT B    
    
    SERIES G CERTIFICATE OF DESIGNATIONS    
  

 
 

EXHIBIT C    
    
    FORM OF WARRANT    
  

 
 

EXHIBIT D    
    
    REGISTRATION RIGHTS AGREEMENT    
  

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Exhibit 10.77

VCAMPUS CORPORATION SECURITIES PURCHASE AGREEMENT

EXHIBIT A SCHEDULE OF PURCHASERS

EXHIBIT B SERIES G CERTIFICATE OF DESIGNATIONS

EXHIBIT C FORM OF WARRANT

EXHIBIT D REGISTRATION RIGHTS AGREEMENTQuickLinks
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Exhibit 10.78    
  

 
  REGISTRATION RIGHTS AGREEMENT    
  

        Registration Rights Agreement, dated effective as of September 30, 2002, by and between VCampus Corporation, a Delaware corporation (the "Company"), and
each of the purchasers set forth on Schedule A attached hereto (each individually, a "Purchaser" and collectively, the "Purchasers"). 

W I T N E S S E T H:

        WHEREAS,
Company and each Purchaser have entered into a Securities Purchase Agreement dated as of the date hereof (the "Purchase Agreement"), pursuant to which the Company has agreed to
issue and sell to the Purchasers, and the Purchasers have agreed to purchase from the Company shares of Series G Preferred Stock of the Company and Warrants exercisable for common stock of the
Company (the "Warrants"); and 

        WHEREAS,
in order to induce the Purchasers to enter into the Purchase Agreement and to purchase the Series G Preferred Stock and/or Warrants, the Company has agreed to provide
registration rights with respect thereto; 

        NOW,
THEREFORE, in consideration of the premises and the covenants hereinafter contained, it is agreed as follows: 

        1.    Definitions.    Unless otherwise defined herein, terms used herein shall have the meaning ascribed to them in
the Purchase Agreement, and the following shall have the following respective meanings (such meanings being equally applicable to both the singular and plural form of the terms defined): 

        "Agreement"
shall mean this Registration Rights Agreement, including all amendments, modifications and supplements and any exhibits or schedules to any of the foregoing, and shall refer
to the Agreement as the same may be in effect at the time such reference becomes operative. 

        "Warrant
Shares" shall mean shares of common stock issued upon exercise of the Warrants. 

        "Holder"
shall mean (i) each Purchaser, and (ii) any other Person holding Registrable Securities to whom the registration rights conferred by this Agreement have been
transferred in compliance with this Agreement. 

        "Majority
Holders" shall mean the Holders of a majority of the Registrable Securities. 

        "NASD"
shall mean the National Association of Securities Dealers, Inc., or any successor corporation thereto. 

        "Piggy-back
Registration" shall have the meaning ascribed to it in Section 3. 

        "Registrable
Securities" shall mean the shares of common stock issuable pursuant to the Purchase Agreement, including the Warrant Shares, and the shares of common stock issuable upon
conversion of the Series G Preferred Stock and shares of common stock which the Purchasers hereafter obtains the right to acquire pursuant to any dividend, distribution, stock split or similar
transaction or rights to the extent that all of the holders of the common stock received shares of common stock; provided,  however, that the aforementioned
shares shall only be treated as Registrable Securities if and for so long as they have not been sold to or through a
broker or underwriter in a public distribution, or only until the date on which all of the Registrable Securities can be disposed of in any three month period pursuant to Rule 144 (or any
similar or analogous rule under the Securities Act of 1933). 

        "Registration
Statement" shall mean a registration statement filed by the Company with the U.S. Securities and Exchange Commission for a public offering and sale of securities of the
Company (other than a Registration Statement on Form S-4 or S-8 or any successor form for securities to be offered in a transaction of the type referred to in
Rule 145 under the Securities Act or to employees of Company pursuant to any employee benefit plan, respectively). 

        "Warrants"
shall mean the warrants to purchase shares of the Company's common stock issued to the Purchasers on the date hereof. 

        2.    Mandatory Registration.    Within 90 days from the date hereof, the Company shall file a
Registration Statement covering the Registrable Securities and shall thereafter use its best efforts to effect the registration under the Securities Act of the Registrable Securities for sale within
90 days after such filing, all to the extent required to permit the disposition of the Registrable Securities so registered for a period of up to one year. 

        3.    Piggy-back Registration.    If the Company at any time proposes to file a registration
statement under the Securities Act on any form (other than a Registration Statement on Form S-4 or S-8 or any successor form for securities to be offered in a
transaction of the type referred to in Rule 145 under the Securities Act or to employees of Company pursuant to any employee benefit plan, respectively) for the general registration of
securities (a "Piggy-back Registration Statement"), it will give written notice to all Holders at least 15 days before the initial filing with the SEC of such Piggy-back
Registration Statement, which notice shall set forth the intended method of disposition of the securities proposed to be registered by Company. The notice shall offer to include in such filing the
aggregate number of shares of Registrable Securities as such Holders may request. 

        Each
Holder desiring to have Registrable Securities registered under this Section 3 shall advise Company in writing within 10 Business Days after the date of receipt of such offer
from Company, setting forth the amount of such Registrable Securities for which registration is requested. Company shall thereupon include in such filing the number of shares of Registrable Securities
for which registration is so requested, subject to the next sentence, and shall use its best efforts to effect registration under the Securities Act of such shares. In connection with any registration
subject to this Section 3, which is to be effected in a firm commitment underwriting, Company will not be required to include Registrable Securities in such underwriting unless the Holder of
such Registrable Securities accepts the terms and conditions of the underwriting agreement which is agreed upon between Company and the managing underwriter selected by Company, so long as such
underwriting agreement conforms to industry standards and practices and the obligations and liabilities imposed on the Holders under such agreement are customary for the stockholders selling
securities in an underwritten offering. If the managing underwriter of a proposed public offering shall advise Company in writing that, in its opinion, the distribution of the Registrable Securities
requested to be included in the registration concurrently with the securities being registered by Company would materially and adversely affect the distribution of such securities by Company, then all
selling security holders with piggy-back registration rights shall reduce the amount of securities each intended to distribute through such offering on a pro rata basis. Except as
otherwise provided in Section 5, all expenses of such registration shall be borne by Company. The Company shall have the right to terminate or withdraw any Registration Statement initiated
under this Section 3 prior to the effectiveness of such Registration Statement whether or not the Holders have elected to include Registrable Securities in such Registration Statement. 

        4.    Registration Procedures.    If the Company is required by the provisions of Section 2 or 3 to use its
best efforts to effect the registration of any of its securities under the Securities Act, Company will, as expeditiously as possible: 

        (a)  prepare
and file with the SEC a Registration Statement with respect to such securities and use its best efforts to cause such Registration Statement to become and remain
effective for a period of time required for the disposition of such securities by the holders thereof, but not to exceed one year (or, with respect to any underwritten offering, such shorter period as
the underwriters need to complete the
distribution of the registered offering or, with respect to a shelf Registration Statement on a form under the Securities Act relating to the offer and sale of Registrable Securities from time to time
in accordance with Rule 415, such longer period as may be required to dispose of the Registrable Securities covered by such Registration Statement); 

        (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 keep
such Registration Statement effective and to comply with the provisions of the Securities Act with respect to 

the sale or other disposition of all securities covered by such Registration Statement until the earlier of such time as all of such securities have been disposed of in a public offering or the
expiration of one year; 

        (c)  furnish,
to such selling security holders such number of copies of a summary prospectus or other prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act, and such other documents, as such selling security holders may reasonably request; 

        (d)  use
its best efforts to register or qualify the securities covered by such Registration Statement under such other securities or blue sky laws of such jurisdictions
within the United States and Puerto Rico as each holder of such securities shall request (provided,  however, that Company shall not be obligated to qualify
as a foreign corporation to do business under the laws of any jurisdiction in which it is not
then qualified or to file any general consent to service or process), and do such other reasonable acts and things as may be required of it to enable such holder to consummate the disposition in such
jurisdiction of the securities covered by such Registration Statement; 

        (e)  enter
into customary agreements (including an underwriting agreement in customary form) and take such other actions as are reasonably required in order to expedite or
facilitate the disposition of such Registrable Securities; 

        (f)    otherwise
use its best efforts to comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as reasonably
practicable, but not later than 18 months after the effective date of the Registration Statement, an earnings statement covering the period of at least 12 months beginning with the first
full month after the effective date of such Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act; 

        (g)  give
written notice to Holders: 

	(i)
	when
such Registration Statement or any amendment thereto has been filed with the SEC and when such Registration Statement or any posteffecive amendment
thereto has become effective;

	(ii)
	of
any request by the SEC for amendments or supplements to such Registration Statement or the prospectus included therein or for additional
information;

	(iii)
	of
the issuance by the SEC of any stop order suspending the effectiveness of such Registration Statement or the initiation of any proceedings for that
purpose;

	(iv)
	of
the receipt by Company or its legal counsel of any notification with respect to the suspension of the qualification of the common stock for sale in
any jurisdiction or the initiation or threatening of any proceeding for such purpose; and

	(v)
	of
the happening of any event that requires Company to make changes in such Registration Statement or the prospectus in order to make the statements
therein not misleading (which notice shall be accompanied by an instruction to suspend the use of the prospectus until the requisite changes have been made); 

        (h)  use
its best efforts to prevent the issuance or obtain the withdrawal of any order suspending the effectiveness of such Registration Statement at the earliest possible
time; 

        (i)    furnish
to each Holder, without charge, at least one copy of such Registration Statement and any post-effective amendment thereto, including financial
statements and schedules, and, if the Holder so requests in writing, all exhibits (including those, if any, incorporated by reference); 

        (j)    cooperate
with the Holders to facilitate the timely preparation and delivery of certificates representing the Registrable Securities to be sold free of any restrictive
legends and in such denominations and registered in such names as the Holders may request a reasonable period of time prior to sales of the Registrable Securities; and 

        (k)  upon
the occurrence of any event contemplated by Section 4(g)(v) above, promptly prepare a post-effective amendment to such Registration
Statement or a supplement to the related prospectus or file any other required document so that, as thereafter delivered to Holders, the prospectus will not contain an untrue statement of a material
fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the Holders in accordance with Section 4(g)(v) above to suspend the
use of the prospectus until the requisite changes to the prospectus have been made, then the Holders shall suspend use of such prospectus, and the period of effectiveness of such Registration
Statement provided for above shall each be extended by the number of days from and including the date of the giving of such notice to Holders shall have received such amended or supplemented
prospectus pursuant to this Section 4(k). 

        It
shall be a condition precedent to the obligation of Company to take any action pursuant to this Agreement in respect of the securities which are to be registered at the request of any
Holder that such Holder shall furnish to Company such information regarding the securities held by such Holder and the intended method of disposition thereof as Company shall reasonably request and as
shall be required in connection with the action taken by Company. 

        5.    Expenses.    All expenses incurred in complying with this Agreement, including, without limitation, all
registration and filing fees (including all expenses incident to filing with the NASD), printing expenses, fees and disbursements of counsel for Company, expenses of any special audits incident to or
required by any such registration and expenses of complying with the securities or blue sky laws of any jurisdiction pursuant to Section 4(d), shall be paid by Company, except that: 

	(a)
	all
such expenses in connection with any amendment or supplement to a Registration Statement or prospectus required to be filed pursuant to Section 3 which is filed more than
one year after the effective date of such Registration Statement because any Holder has not effected the disposition of the securities requested to be registered shall be paid by such Holder; and

	(b)
	Company
shall not be liable for any fees, discounts or commissions to any underwriter or any fees or disbursements of counsel for any underwriter in respect of the securities sold by
such Holder. 

        6.    Indemnification and Contribution.    

	(a)
	In
the event of any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, Company shall indemnify and hold harmless the holder of such
Registrable Securities, such holder's directors and officers, and each other person (including each underwriter) who participated in the offering of such Registrable Securities and each other person,
if any, who controls such holder or such participating person within the meaning of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which such holder or
any such director or officer or participating person or controlling person may become subject under the Securities Act or any other statute or at common law, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon (i) any alleged untrue statement of any material fact contained, on the effective date thereof, in any Registration
Statement under which such securities were registered
under the Securities Act, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereto, or (ii) any alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, and shall reimburse such holder or such director, officer or participating person or controlling person for
any legal or any other expenses reasonably incurred by such holder or such director, officer or participating person or controlling person in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that Company shall not be liable in any such case to the extent that any such loss, claim, damage
or liability arises out of or is based upon any actual or alleged untrue statement or actual or alleged omission made in such Registration Statement, preliminary prospectus, prospectus or 

amendment
or supplement in reliance upon and in conformity with written information furnished to Company by such holder specifically for use therein or (in the case of any underwritten offering) so
furnished for such purposes by any underwriter. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such holder or such director, officer or
participating person or controlling person, and shall survive the transfer of such securities by such holder. 

	(b)
	Each
Holder, by acceptance hereof, agrees to indemnify and hold harmless Company, its directors and officers and each other person, if any, who controls Company within the meaning of
the Securities Act against any losses, claims, damages or liabilities, joint or several, to which Company or any such director or officer or any such person may become subject under the Securities Act
or any other statute or at common law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon information in writing provided to Company
by such Holder specifically for use in the following documents and contained, on the effective date thereof, in any Registration Statement under which securities were registered under the Securities
Act at the request of such holder, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereto. Notwithstanding the provisions of this paragraph (b)
or paragraph (c) below, no Holder shall be required to indemnify any person pursuant to this Section 6 or to contribute pursuant to paragraph (c) below in an amount in excess of
the amount of the aggregate net proceeds received by such Holder in connection with any such registration under the Securities Act.

	(c)
	If
the indemnification provided for in this Section 6 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any losses, claims, damages,
liabilities or expenses referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified parties in connection with
the actions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and
indemnified parties shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified parties, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be
deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. 

        The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6(c) were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 

        7.    Certain Limitations on Registration Rights.    Notwithstanding the other provisions of this Agreement: 

	(a)
	Company
shall have the right to delay the filing or effectiveness of, or by written notice require the Holders to cease sales of Registrable Securities pursuant to, a Registration
Statement required pursuant to this Agreement during one or more periods aggregating not more than 60 days in any twelve-month period (such period or periods, the "Suspension Period") in the
event that (i) Company would, in accordance with the advice of its counsel, be required to disclose in the prospectus information not otherwise then required by law to be 

publicly
disclosed, (ii) in the judgment of Company's Board of Directors, there is a reasonable likelihood that such disclosure, or any other action to be taken in connection with the
prospectus, would materially and adversely affect any existing or prospective material business situation, transaction or negotiation or otherwise materially and adversely affect Company, or
(iii) the Registration Statement can no longer be used under the Securities Act; provided that the period of effectiveness of the Registration Statement shall be extended by the length of any
such Suspension Period; 

	(b)
	If
Company suspends the Registration Statement or requires the Holders to cease sales of the common stock pursuant to paragraph (a) above, Company shall, as promptly as
practicable following the termination of the circumstances which entitled Company to do so, take such action as may be necessary to reinstate the effectiveness of the Registration Statement and/or
give written notice to all Holders authorizing them to resume sales pursuant to the Registration Statement. If, as a result thereof, the prospectus included in the Registration Statement has been
amended to comply with the requirements of the Securities Act, Company shall enclose such revised prospectus with a notice to Holders given pursuant to this paragraph (b), and the Shareholders
shall make no offers or sales of shares pursuant to such Registration Statement other than by means of such revised prospectus. 

        8.    Restrictions on Sale After Public Offering.    Except for transfers made in transactions exempt from the
registration requirements under the Securities Act, Company and each Holder hereby agree not to offer, sell, contract to sell or otherwise dispose of any of their Registrable Securities within
120 days after the date of any final prospectus relating to the public offering of common stock, if underwritten, whether by Company or by any Holders, except pursuant to such prospectus or
with the written consent of the managing underwriter or underwriters for such offering. 

        9.    Miscellaneous.    

	(a)
	Amendments and Waivers.    Except as otherwise provided herein, the provisions of this Agreement may not be amended, modified
or supplemented, and waivers or consents to departure from the provisions hereof may not be given without the written consent of the Majority Holders and the Company.

	(b)
	Notice Generally.    Any notice, demand, request, consent, approval, declaration, delivery or other communication hereunder
to be made pursuant to the provisions of this Agreement shall be sufficiently given or made if in writing and either delivered in person with receipt acknowledged or sent by registered or certified
mail, return receipt requested, postage prepaid, or by telecopy and confirmed by telecopy answerback, addressed as follows:

	(i)
	If
to any Holder, at its last known address appearing on the books of Company maintained for such purpose.

	(ii)
	If
to Company, at 

VCampus
Corporation

Suite 200

1850 Centennial Park Drive

Reston, VA 20191

Attention: Chief Financial Officer

Telecopy Number: (703) 654-7311 

with
a copy to 

Wyrick
Robbins Yates & Ponton LLP

Suite 300

4101 Lake Boone Trail

Raleigh, NC 27607

Attn: Kevin A. Prakke, Esq. 

or
at such other address as may be substituted by notice given as herein provided. The giving of any notice required hereunder may be waived in writing by the party entitled to receive such notice.
Every notice, demand, request, consent, approval, declaration, delivery or other communication hereunder shall be deemed to have been duly given or served on the date on which personally delivered,
with receipt acknowledged, telecopied and confirmed by telecopy answerback or three Business Days after the same shall have been deposited in the United States mail. 

        (c)    Successors and Assigns.    This Agreement shall inure to the benefit of and be binding upon the successors and
assigns of each of the parties hereto including any person to whom Registrable Securities are transferred. 

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

        (e)    Governing Law; Jurisdiction.    This Agreement shall be governed by, construed and enforced in accordance with
the laws of the State of Delaware without giving effect to the conflict of laws provisions thereof. 

        (f)    Severability.    Wherever possible, each provision of this Agreement shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 

        (g)    Entire Agreement.    This Agreement, together with the Purchase Agreement, the Series G Certificate of
Designations and Warrants, represents the complete agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein. This Agreement supersedes all prior
agreements and understandings between the parties with respect to the subject matter hereof. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

	COMPANY:	VCAMPUS CORPORATION
	

 	

By:	
 	

 
	 	 	 	

	 	Name:	 	Daniel J. Neal
	 	Title:	 	Chief Executive Officer
	

	

 	
 	

 
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SCHEDULE A
  Schedule of Purchasers    
  

QuickLinks

Exhibit 10.78

REGISTRATION RIGHTS AGREEMENT

SCHEDULE A Schedule of Purchasers

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