Document:

EXHIBIT 4.3

VSOURCE, INC.

REGISTRATION RIGHTS AGREEMENT

Dated as of October 25, 2002

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TABLE OF CONTENTS

				Page
	1.	Registration Rights	1
		1.1	Definitions	1
		1.2	Request for Registration	5
		1.3	Company Registration	7
		1.4	Form S-3 Registration	8
		1.5	Obligations of the Company	10
		1.6	Information from Holder	12
		1.7	Expenses of Registration	12
		1.8	Delay of Registration	13
		1.9	Indemnification	13
		1.10	Reports Under Securities Exchange Act of 1934	16
		1.11	Assignment of Registration Rights	16
		1.12	Limitations on  Subsequent Registration Rights	16
		1.13	Governmental Authorities	17
		1.14	Termination of Registration Rights	17
	2.	Miscellaneous	17
		2.1	Additional Investors	17
		2.2	Successors and Assigns	17
		2.3	Governing Law; Venue	17
		2.4	Counterparts	18
		2.5	Titles and Subtitles	19
		2.6	Notices	19
		2.7	Expenses	19
		2.8	Amendments and Waivers	19
		2.9	Aggregation of Stock	19
		2.10	Further Assurances	20
		2.11	Severability	20
		2.12	Entire Agreement	20

SCHEDULE

	

SCHEDULE A
	Schedule of Investors
		

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VSOURCE, INC.

REGISTRATION RIGHTS AGREEMENT

         This REGISTRATION RIGHTS AGREEMENT (this "Agreement") is entered into as of
October 25, 2002 by and among Vsource, Inc., a Delaware corporation (the "Company"), the
Founder Investors listed on Schedule A (the "Founder Investors") and the other Investors listed
on Schedule A (together with the Founder Investors, the "Investors").

                  The Investors are the owners of that number of shares of Series 4-A Convertible
Preferred Stock, par value U.S.$0.01 per share (the "Series 4-A Preferred Stock"), as set forth in
detail on Schedule A.    

                  The obligations of the Company and certain of the Investors under the Series 4-A
Convertible Preferred Stock Purchase Agreement dated as of October 23, 2002 (the "Series 4-A
Purchase Agreement") are conditioned, among other things, upon the execution and delivery of
this Agreement by the Investors and the Company.

                  In consideration of the mutual premises and covenants contained in this
Agreement and for other good and valuable consideration, the sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

1.    Registration Rights

    1.1         Definitions

                  For purposes of this Agreement, the following terms have the meanings set forth
below:

                  (a)         	"Act" means the Securities Act of 1933, as amended.

                  (b)         	"Affiliate" of an entity means a person or entity that directly, or indirectly
through one or more intermediaries, controls or is controlled by, or is under common control
with, such entity.

                  (c)         	"Form S-3" means such form under the Act as in effect on the date hereof
or any registration form under the Act subsequently adopted by the SEC that permits inclusion or
incorporation of substantial information by reference to other documents filed with the SEC.

                  (d)         	"Governmental Authority" is defined in Section 1.5(a).

                  (e)         	"Holder" means any person owning or having the right to acquire
Registrable Securities or any assignee thereof in accordance with Section 1.11.

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                  (f)         	"Indemnified Person" is defined in Section 1.9(a).

                  (g)         	"Initiating Holder(s)" is defined in Section 1.2(a).

                  (h)         	"IRR" means the discount rate that would make the present value of a
stream of Payments (as defined below) and Receipts (as defined below) equal zero where: 

                           (i)         cash payments (the "Payments") are: 

		(a)         	the purchase consideration paid by the Share Purchasers (as
defined in the definition of Qualifying Offering below) to the
Company for Series 4-A Preferred Stock purchased on
October 25, 2002;

		(b)         the purchase consideration paid by the Share Purchasers to the
Company, if any, for Series 4-A Preferred Stock purchased after
October 25, 2002 pursuant to the Series 4-A Purchase Agreement;
and

		(c)         the purchase consideration paid by the Share Purchasers to the
Company, if any, for Common Stock issued upon exercise of
warrants which were issued in connection with the Series 4-A
Preferred Stock (the "Warrant Shares"); and

                           (ii)         amounts received (the "Receipts") are: 

		(a)         dividend distributions and other cash payments, if any,
received by the Share Purchasers from the Company in respect of: (1)
the Series 4-A Preferred Stock and Warrant Shares and (2) any
securities received by the Share Purchasers in respect of the Series 4-A Preferred Stock or Warrant Shares without additional consideration
paid by the Share Purchasers; and

		(b)         the value of Series 4-A Preferred Stock, Warrant Shares and
any securities received by the Share Purchasers in respect of the
Series 4-A Preferred Stock or Warrant Shares without additional
consideration paid by the Share Purchasers held by the Share
Purchasers on the Liquidity Date (as defined below) determined as (1)
the aggregate value of the Series 4-A Preferred Stock and Warrant
Shares and such securities held by the Share Purchasers on the
Liquidity Date in the case of a Qualifying Offering (determined as the
offering price to the public per share of Common Stock times the
number of Warrant Shares and the number of issued or issuable
Conversion Shares (as defined in the definition of Liquidity Date
below)); (2) the aggregate purchase price of the Series 4-A Preferred
Stock, Warrant Shares and/or such securities on the Liquidity Date in
the case of a Qualifying Sale; or (3) the proceeds distributable to the
Share Purchasers on the Liquidity Date in the case of a sale of assets;
and

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                           (iii)         the first date in the measurement of the present value will be
October 25, 2002 and the last date will be the Liquidity Date.

                  (i)         	"Liquidity Date" means the earliest to occur of: (i) the date of registration
effected by preparing and filing a registration statement or similar document in compliance with
the Act, and the declaration or ordering of effectiveness of such registration statement or
document by the SEC (as defined below) or, in connection with a Qualifying Offering (as defined
below) on an Authorized Exchange (as defined in the definition of Qualifying Offering below) in
a jurisdiction other than the United States, any registration, qualification or completion of any
procedure in compliance with the applicable securities laws of such non-U.S. jurisdiction
undertaken or made to permit the unrestricted, lawful distribution or resale of securities to
members of the general public therein, of any of the Common Stock issuable upon conversion of
the Series 4-A Preferred Stock held by the Share Purchasers (as defined in the definition of
Qualifying Offering below) or their Permitted Transferees (the "Conversion Shares") following,
or in conjunction with, the completion of a Qualifying Offering (as defined below); (ii) the date
on which the Share Purchasers and their Permitted Transferees are able to publicly sell all of their
issued or issuable Conversion Shares pursuant to an effective registration statement covering
such shares or in any three month period pursuant to Rule 144, provided that a Qualifying
Offering has occurred; (iii) the date of the closing of a Qualifying Sale (as defined below); and
(iv) the date of the closing of a sale of all or substantially all of the assets of the Company for
consideration that results in distributions per share to the Share Purchasers of proceeds from such
sale equivalent to the consideration that would be received in a Qualifying Sale.

                  (j)         	"Losses" is defined in Section 1.9(a).

                  (k)         	"New Investors" is defined in Section 2.1.

                  (l)         	"1934 Act" means the Securities Exchange Act of 1934, as amended.

                  (m)         	"Offering Documents" means any application, offering memoranda,
prospectuses, registration statements or other documents necessary or appropriate in order to
effect any offer or sale of Registrable Securities in the manner set forth herein. 

                  (n)         	"Permitted Transferee" means any Affiliate of a Holder, any spouse or
lineal ancestor or descendant of a Holder, or any trust or other entity created and existing solely
for the benefit, directly or indirectly, of a Holder or any such person or persons.  

                  (o)         	"Participating Holder" is defined in Section 1.2(a).

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                  (p)         	"Qualifying Offering" means a firm commitment public offering,
underwritten by an internationally reputable investment bank selected by the Company's Board of
Directors, of the Company's Common Stock on an internationally recognized exchange or
quotation system, which exchange or quotation system shall have a minimum market
capitalization, based on the market value of all of the listed securities thereon, of
US$50,000,000,000, as quoted and reported within the EMTK Function of Bloomberg Financial
Markets or if not so quoted, based upon statistics made publicly available on such exchange, or if
such statistics are not available, based upon the reasonable discretion of the Company's Board of
Directors (an "Authorized Exchange") pursuant to an effective registration statement under the
Act (other than a registration statement relating either to the sale of securities to employees of the
Company pursuant to its stock option, stock purchase or similar plan or a transaction pursuant to
Rule 145 under the Act) or, in connection with a Qualifying Offering on an Authorized Exchange
in a jurisdiction other than the United States, pursuant to any registration, qualification or
completion of any procedure in compliance with the applicable securities laws and exchange
rules of such non-U.S. jurisdiction undertaken or made to permit the unrestricted, lawful
distribution or resale of securities to members of the general public therein, the public offering
price per share (the "Offering Price") of which is not less than the price that would yield an IRR
of thirty percent (30%) to the Investors who on October 25, 2002 purchased shares of Series 4-A
Preferred Stock for cash consideration (such Investors being referred to herein as the "Share
Purchasers" and such price being referred to herein as the "30% IRR Price") and in which the
aggregate net proceeds (after deductions of underwriters' commissions and offering expenses) to
the Company exceed US$20,000,000 (or the equivalent in the applicable currency).   

                  (q)         	"Qualifying Sale" means a sale of more than fifty percent (50%) of the
Company's Common Stock on a fully diluted basis (assuming full conversion and exercise of all
outstanding convertible, exchangeable and exercisable securities, including, without limitation,
securities granted under any employee share option plan which have vested) for a purchase price
per share at least equal to the 30% IRR Price, provided however, that in the event the purchase
price for such securities is payable in marketable securities, such marketable securities shall be
valued at the average of the daily closing prices of such marketable securities over the 180
consecutive trading days immediately preceding (and not including) the date such marketable
securities are received, and provided further, that such purchase price is payable in full at the
closing in cash or marketable securities.

                  (r)         	"register," "registered", and "registration" refer to: (i) a registration
effected by preparing and filing a registration statement or similar document in compliance with
the Act and the declaration or ordering of effectiveness of such registration statement or
document or (ii) in the case of an offer and sale outside of the United States, the preparation and
filing of the relevant Offering Documents with any applicable Governmental Authority and the
declaration or ordering of effectiveness of such Offering Documents.

                  (s)         	"Recapitalizations" means stock splits, subdivisions, stock dividends,
combinations, recapitalizations and the like.  

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                  (t)         	"Registrable Securities" means (i) the shares of Common Stock issuable
or issued upon conversion of the Company's Series 4-A Preferred Stock, (ii) shares of Common
Stock issued or issuable upon exercise of the warrants issued to the Investors pursuant to the
Series 4-A Purchase Agreement and (iii) any shares of Common Stock of the Company issued as
(or issuable upon conversions, exchanges or exercises of such shares or of warrants, rights or
other securities issued as) a dividend or other distribution with respect to, or in exchange for, or
in replacement of, such shares referenced in (i) above.  Notwithstanding the foregoing, shares of
Common Stock otherwise designated Registrable Securities shall cease to be Registrable
Securities when (1) such shares are sold by a person in a transaction in which his, her or its rights
under this Section 1 have not been assigned, (2) pursuant to a registration statement under the
Act that has been declared effective or other effective Offering Document and such Registrable
Securities have been disposed of pursuant to such effective registration statement or other
Offering Document or (3) the entire amount of the Registrable Securities of a Holder may be sold
in any ninety (90) day period without registration in compliance with Rule 144 (or any similar
provision then in effect) under the Act.

                  (u)         The number of shares of "Registrable Securities then outstanding" will
be determined by the number of shares of Common Stock outstanding that are, and the number of
shares of Common Stock issuable pursuant to then exercisable, exchangeable or convertible
securities that are, Registrable Securities.

                  (v)         	"S-3 Participating Holders" is defined in Section 1.4(a).

                  (w)         	"SEC" means the U.S. Securities and Exchange Commission.

                  (x)         	"Stop Order" is defined in Section 1.5(f).

                  (y)         	"Violation" is defined in Section 1.9(a).

    1.2         Request for Registration

                  (a)         If, at any time after the date that is ninety (90) days after the date of this
Agreement, the Company receives a written request from the Holders (other than Founding
Investors) of fifteen percent (15%) or more of the Registrable Securities then outstanding (the
"Initiating Holder(s)") that the Company file a registration statement under the Act or other
Offering Document covering the registration of at least five percent (5%) of the Company's total
outstanding share capital on a fully diluted basis at such time, then the Company will promptly,
and in no event later than fifteen (15) days of the receipt thereof, give written notice of such
request to all Holders.  Such Holders have the right by giving written notice to the Company
within thirty (30) days after the Company has given its notice, to include such of their Registrable
Securities as they elect in such notice to the Company (any such Holders being referred to herein
as "Participating Holders") .  Subject to the limitations of Section 1.2(b) and (c), the Company
will use its best efforts to, as expeditiously as possible, take such actions to register with, or
otherwise seek such approvals of, the SEC or any Governmental Authority as are necessary or
appropriate in order to permit the public offer and sale of the Registrable Securities which the
Initiating Holder or Holders and Participating Holders had requested to be included in such
registration.

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                  (b)         If the Initiating Holder or Holders intend to distribute the Registrable
Securities covered by their request by means of an underwriting, they will so advise the Company
as a part of their request made pursuant to this Section 1.2 and the Company will include such
information in the written notice referred to in this Section 1.2.  In such event, the right of any
Holder to include its Registrable Securities in such registration will be conditioned upon such
Holder's participation in such underwriting and the inclusion of such Holder's Registrable
Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the
Initiating Holder or Holders and the Participating Holders) to the extent provided herein.  All
Holders proposing to distribute their securities through such underwriting will enter into an
underwriting agreement in customary form with the underwriter or underwriters selected for such
underwriting by the Company's Board of Directors and the Initiating Holders holding a majority
of the Registrable Securities requested by such Initiating Holders to be included in the
registration.  Notwithstanding any other provision of this Section 1.2, if the managing
underwriter advises the Company that marketing factors require a limitation of the number of
securities underwritten (including Registrable Securities), then the Company will so advise all
Holders of Registrable Securities that would otherwise be underwritten pursuant hereto, and the
number of shares that may be included in the underwriting will be allocated to the Holders of
such Registrable Securities on a pro rata basis (as nearly as practicable) based on the number of
Registrable Securities held by all such Holders (including the Initiating Holder or Holders),
provided, that no Registrable Securities will be excluded unless and until all other securities of
the Company and other stockholders not holding Registrable Securities hereunder who were to
participate in the underwriting have been excluded.  Any Registrable Securities excluded or
withdrawn from such underwriting will be withdrawn from the registration.

                  (c)         In addition, the Company will not be required to effect a registration
pursuant to this Section 1.2:

                           (i)         after the Company has effected three (3) registrations pursuant to
this Section 1.2, and such registrations have been declared or ordered effective; 

                           (ii)         if the Company has filed a registration pursuant to Section 1.2, 1.3
or 1.4 within the preceding six (6) months and such registration statement or other Offering
Document has been declared or ordered effective;

                           (iii)         during the period starting with the date sixty (60) days prior to, and
ending on the date one hundred eighty (180) days following, the Company's good faith estimate
of the effective date of a Company-initiated registration subject to Section 1.3, provided that the
Company is actively employing in good faith its best efforts to cause such registration to become
effective; provided, further that the Company will not be entitled to rely on this clause (iii) as to
any proposed Company-initiated registration if such registration is not effected by the end of
ninety (90) days following the commencement of such period; 

                           (iv)         if the Initiating Holder or Holders propose to dispose of
Registrable Securities that may be registered within ten (10) days of such Initiating Holder's or
Holders' request on Form S-3 pursuant to a request made pursuant to Section 1.4;

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                           (v)         if the Company furnishes to Holders requesting a registration
pursuant to this Section 1.2, a certificate signed by the Company's Chief Executive Officer and
Chairman of the Board stating that the Board of Directors of the Company has determined that it
would be seriously detrimental to the Company and its stockholders for such registration to be
effected at such time, in which event the Company will have the right to defer such filing for a
period of not more than ninety (90) days after receipt of the request of the Initiating Holder or
Holders; provided, that such right to delay a request pursuant to this Section 1.2(c)(v) or Section
1.4(b)(iii) will be exercised by the Company not more than once in any twelve (12)-month
period; or

                           (vi)         in any particular jurisdiction in which the Company would be
required to execute a general consent to service of process in effecting such registration, unless
the Company is already subject to service in such jurisdiction and except as may be required
under the Act.

                  (d)         No registration initiated by the request of Holders hereunder will count as
a registration under Section 1.2 (i) if the effect of any cut-back pursuant to Section 1.2(b) is to
reduce the number of shares requested by the Holders to be included in the registration below
eighty percent (80%) or (ii) if the related registration statement or other Offering Document filed
with the SEC or Governmental Authority is not declared effective (either pursuant to Section
1.2(e) or otherwise) or is declared effective but is subject to a Stop Order or is withdrawn by the
Company before at least eighty percent (80%) of the Holders' securities so registered are sold.

                  (e)         A majority in interest of the Initiating Holder or Holders and the
Participating Holders shall have the right at any time to demand the withdrawal of any
registration statement or other Offering Document filed pursuant to this section (and the
Company shall so withdraw such registration statement or other Offering Document) prior to the
time that such registration has become effective or is otherwise finalized and approved, provided
that no registration statement or other Offering Document shall be withdrawn pursuant to this
section if one or more Initiating Holders meets the minimum requirements for registration set
forth in Section 1.2(a) above and wishes to continue with the registration, it being understood
that in such event any other Initiating or Participating Holders that wish may withdraw their
shares from such registration on an individual basis.

    1.3         Company Registration

                  (a)         If (but without any obligation to do so) the Company proposes to
register (including for this purpose a registration effected by the Company for stockholders other
than the Holders) any of its stock or other securities under the Act in connection with the public
offering of such securities (other than a registration relating solely to the sale of securities to
participants in a Company stock option plan, stock issuance plan or employee stock purchase
plan, a registration relating to a corporate reorganization or other transaction under Rule 145 of
the Act, a registration on any form that does not include substantially the same information as
would be required to be included in a registration statement covering the sale of the Registrable
Securities, or a registration in which the only Common Stock being registered is Common Stock
issuable upon conversion of debt securities that are also being registered), the Company will, at
such time, promptly give each Holder written notice of such registration.  Upon the written
request of each Holder given within twenty (20) days after mailing of such notice by the
Company, the Company will, subject to the provisions of Section 1.3(c), use its best efforts to
cause to be registered under the Act all of the Registrable Securities that each such Holder has
requested to be registered.

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                  (b)         The Company will have the right to terminate or withdraw any
registration initiated by it under this Section 1.3 prior to the effectiveness of such registration
whether or not any Holder has elected to include securities in such registration.  The expenses of
such withdrawn registration shall be borne by the Company in accordance with Section 1.7
hereof.

                  (c)         In connection with any offering involving an underwriting of
shares of the Company's capital stock, the Company will not be required under this Section 1.3
to include any of the Holders' securities in such underwriting unless they accept the terms of the
underwriting as agreed upon between the Company and the underwriters selected by the
Company and enter into an underwriting agreement in customary form with an underwriter or
underwriters selected by the Company's Board of Directors.  If the total amount of securities,
including Registrable Securities, requested by stockholders to be included in such offering
exceeds the amount of securities sold other than by the Company that the underwriters determine
in their sole discretion is compatible with the success of the offering, then the Company will be
required to include in the offering only that number of such securities, including Registrable
Securities, that the underwriters determine in their sole discretion will not jeopardize the success
of the offering (the securities so included to be apportioned pro rata among the selling
stockholders according to the total amount of securities entitled to be included therein owned by
each selling stockholder or in such other proportions as mutually agreed to by such selling
stockholders; provided, that there shall be no reduction in the number of securities requested to
be included in such offering by QCC Communications Corporation or its successors or assigns
("QCC") pursuant to the Domain Name Transfer Agreement dated August 10, 2001 by and
between QCC and the Company, unless QCC consents to a reduction; provided, further in no
event will the amount of securities of the selling stockholders included in the offering be reduced
below twenty-five percent (25%) of the total amount of securities included in such offering).  For
purposes of the preceding parenthetical concerning apportionment, for any selling stockholder
that is a Holder of Registrable Securities and that is a partnership or corporation, the partners,
retired partners and stockholders of such Holder, or the estates and family members of any such
partners and retired partners and any trusts for the benefit of any of the foregoing persons may be
deemed to be a single "selling stockholder", and any pro rata reduction with respect to such
"selling stockholder" will be based upon the aggregate amount of Registrable Securities owned
by all entities and individuals included in such "selling stockholder", as defined in this sentence.

    1.4         Form S-3 Registration

                  In case, at any time after the date which is ninety (90) days after the date of this
Agreement, the Company receives from an Initiating Holder or Holders a written request or
requests that the Company effect a registration on Form S-3 and any related qualification or
compliance with respect to all or a part of the Registrable Securities owned by such Initiating
Holder or Holders, the Company will:

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                  (a)         promptly, and, in no event later than fifteen (15) days after the
Company's receipt of the Initiating Holder's or Holders' request, give written notice of the
proposed registration, and any related qualification or compliance, to all other Holders and such
Holders shall have the right by giving written notice to the Company within fifteen (15) days
after the Company has given its notice, to include such of their Registrable Securities as they
elect in such notice to the Company (any such Holders being referred to herein as "S-3
Participating Holders"); and

                  (b)         use its best efforts to, as expeditiously as possible, take such
actions to register with the SEC as are necessary or appropriate to permit the public offer and sale
of the Registrable Securities which the Initiating Holder or Holders and S-3 Participating Holders
had requested to be included in such registration.  However, the Company will not be obligated
to effect any such registration, qualification or compliance, pursuant to this Section 1.4 under the
following circumstances:

                           (i)         if Form S-3 is not available for such offering by the Initiating
Holder or Holders, but only for so long as Form S-3 is not available;

                           (ii)         if the Initiating Holder or Holders and the S-3 Participating
Holders, together with the holders of any other securities of the Company entitled to inclusion in
such registration, propose to sell Registrable Securities and such other securities (if any) at an
aggregate price to the public (net of any underwriters' discounts or commissions) of less than
U.S.$5,000,000;

                           (iii)         if the Company furnishes to the Initiating Holder or Holders and
the S-3 Participating Holders a certificate signed by the Company's Chief Executive Officer and
Chairman of the Board stating that the Board of Directors of the Company has determined that it
would be seriously detrimental to the Company and its stockholders for such Form S-3
registration to be effected at such time, in which event the Company will have the right to defer
such filing for a period of not more than ninety (90) days after receipt of the request of the
Initiating Holder or Holders under this Section 1.4; provided, that such right to delay a request
pursuant to this Section 1.4(b)(iii) or Section 1.2(c)(v) will be exercised by the Company not
more than once in any twelve (12)-month period;

                           (iv)         if the Company has, within the six (6) month period preceding the
date of such request, already filed one registration on Form S-3 for the Holders pursuant to this
Section 1.4; or

                           (v)         in any particular jurisdiction in which the Company would be
required to execute a general consent to service of process in effecting such registration, unless
the Company is already subject to service in such jurisdiction and except as may be required
under the Act.

                  (c)         Registrations effected pursuant to this Section 1.4 will not be
counted as requests for registration effected pursuant to Section 1.2.

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                  (d)         A majority in interest of the Initiating Holder or Holders and the
Participating Holders shall have the right at any time to demand the withdrawal of any
registration statement filed pursuant to this section (and the Company shall so withdraw such
registration statement) prior to the time that such registration has become effective, provided that
no registration statement shall be withdrawn pursuant to this section if one or more Initiating
Holders meets the minimum requirements for registration set forth in this Section 1.4 above and
wishes to continue with the registration, it being understood that in such event any other
Initiating or Participating Holders that wish may withdraw their shares from such registration on
an individual basis.

    1.5         Obligations of the Company

                  Whenever required under this Section 1 to effect the registration of any
Registrable Securities, the Company will, as expeditiously as possible:

                  (a)         prepare and file with the SEC (or any other equivalent
governmental authority in jurisdiction outside of the United States responsible for the
regulation and oversight of such jurisdiction's securities laws with respect to a registration on an
Authorized Exchange outside of the United States (a "Governmental Authority")) Offering
Documents with respect to such Registrable Securities and use its best efforts to cause such
Offering Documents to become effective as expeditiously as possible, and, upon the request of
the Holders of a majority of the Registrable Securities registered thereunder, keep such Offering
Documents effective for a period of: (1) up to one hundred twenty (120) days in the case of
registration under Sections 1.2 or 1.3 or, if earlier, until the distribution contemplated in the
Offering Document has been completed or (2) up to three hundred sixty-five (365) days in the
case of registration under Section 1.4 or, if earlier, until the distribution contemplated in the
Offering Document has been completed or until all Registrable Securities covered by such
Offering Document can be sold in any ninety (90) day period without registration in compliance
with Rule 144 of the Act; provided, however, that such one hundred twenty (120) day and three
hundred sixty-five (365) day periods, as the case may be, will be extended for a period of time
equal to the period any Holder refrains from selling any securities included in such registration at
the request of an underwriter of the Common Stock (or other securities) of the Company;

                  (b)         notify each Holder whose securities are to be registered of the
effectiveness of the Offering Documents and the effectiveness or final approval of any post-effective amendment to any Offering Document; and prepare and file with the SEC or a
Governmental Authority such amendments and supplements to such Offering Documents as may
be necessary to comply with the provisions of the Act and any other applicable laws with respect
to the disposition of all Registrable Securities covered by such Offering Documents;

                  (c)         furnish to each Holder (i) a draft copy of the Offering Documents,
and (ii) such numbers of copies of a prospectus, including a preliminary prospectus, in
conformity with the requirements of the Act and other applicable law, and such other documents
as it may reasonably request in order to facilitate the disposition of Registrable Securities owned
by it;

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                  (d)         use its best efforts to (i) register and qualify the securities covered
by such Offering Documents under such other securities or "blue sky" laws of such states or
jurisdictions as may be reasonably requested by the Holders, but in any event in no more than
five (5) states and jurisdictions, and do all other acts and things that may be necessary or
desirable to enable the Holders to consummate their public sale or other disposition of the
Registrable Securities in such states or jurisdictions; provided, that the Company will not be
required in connection therewith or as a condition thereto to qualify to do business, where not
otherwise required, or to file a general consent to service of process in any such states or
jurisdictions, unless the Company is already subject to service in such jurisdiction and except as
may be required by the Act and (ii) cause such Registrable Securities to be registered with or
approved by such other governmental agencies or authorities as may be necessary by virtue of the
business and operations of the Company to enable the disposition of such Registrable Securities;

                  (e)         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;

                  (f)         notify each Holder of Registrable Securities covered by such
Offering Document, at any time when a prospectus relating thereto is required to be delivered, of
(i) the issuance of any stop order or equivalent order by the SEC or any Governmental Authority
suspending the effectiveness of such Offering Document or the initiation of any proceedings by
any person to such effect (a "Stop Order"), and use commercially reasonable efforts to obtain the
release of such suspension as soon as reasonably practicable, (ii) any communication from the
SEC or any Governmental Authority threatening the issuance of a Stop Order and (iii) the
happening of any event as a result of which the Offering Documents, as then in effect, include 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 not misleading and promptly furnish to the Holders
copies of a supplement or amendment of such Offering Documents as may be necessary to
correct such misstatement or omission;

                  (g)         cause all such Registrable Securities registered pursuant hereunder
to be listed on each securities exchange on which similar securities issued by the Company are
then listed; 

                  (h)         provide a transfer agent and registrar for all Registrable Securities
registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in each
case not later than the effective date of such registration and use its best efforts to cause the
transfer agent to remove restrictive legends on the securities covered by such registration; and

                  (i)         use its best efforts to furnish, at the request of any Holder
requesting registration of Registrable Securities pursuant to this Section 1, on the date that such
Registrable Securities are delivered to the underwriters for sale in connection with a registration
pursuant to this Section 1, if such securities are being sold through underwriters, or, if such
securities are not being sold through underwriters, on the date that the Offering Document with
respect to such securities becomes effective, (i) an opinion, dated as of 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 and reasonably satisfactory
to a majority in interest of the Holders requesting registration, addressed to the underwriters and
to the Holders requesting registration of Registrable Securities, and (ii) a "comfort" letter dated
as of such date, from the independent certified public accountants of the Company, in form and
substance as is customarily given by independent certified public accountants to underwriters in
an underwritten public offering and reasonably satisfactory to a majority in interest of the
Holders requesting registration, addressed to the underwriters and to the Holders requesting
registration of Registrable Securities.

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    1.6         Information from Holder

                  (a)         It is a condition precedent to the obligations of the Company to
take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling
Holder that such Holder furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of such securities as is
reasonably requested by the Company or the managing underwriter in order to satisfy the
requirements applicable to such registration of such Holder's Registrable Securities.

                  (b)         The Company has no obligation with respect to any registration
requested pursuant to Section 1.2 if, due to the operation of Section 1.6(a), the number of shares
or the anticipated aggregate offering price of the Registrable Securities to be included in the
registration does not equal or exceed the number of shares or the anticipated aggregate offering
price required to originally trigger the Company's obligation to initiate such registration as
specified in Section 1.2(a).

    1.7         Expenses of Registration  

                  (a)         All expenses (other than underwriting discounts and commissions
relating to Registrable Securities of a Holder) incurred in connection with registrations, filings or
qualifications pursuant to Sections 1.2 and 1.3, including, without limitation, all registration,
filing and qualification fees (including "blue sky" fees), printers' and accounting fees, fees and
disbursements of counsel for the Company (including fees and disbursements of one counsel for
the selling Holders selected by the selling Holders holding a majority of the Registrable
Securities to be registered) will be borne by the Company.  Notwithstanding the foregoing, the
Company will not be required to pay for any expenses of any registration pursuant to Section 1.2
if the registration request is subsequently withdrawn in accordance with Section 1.2(e) (in which
case all Initiating Holder or Holders and Participating Holders will bear such expenses pro rata
based upon the number of Registrable Securities that were to be registered in the withdrawn
registration), unless all Holders agree to forfeit their right to one (1) demand registration pursuant
to Section 1.2, and provided, further, that if such withdrawal is made pursuant to Section 1.2(d),
then the Holders will not be required to pay any such expenses and will retain their rights
pursuant to Section 1.2.

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                  (b)         All expenses (other than underwriting discounts and commissions
relating to Registrable Securities of a Holder) incurred in connection with the first two (2)
registrations, filings or qualifications pursuant to Section 1.4, including, without limitation, all
registration, filing and qualification fees (including "blue sky" fees), printers' and accounting
fees, fees and disbursements of counsel for the Company (including fees and disbursements of
one counsel for the selling Holders selected by the selling Holders holding a majority of the
Registrable Securities to be registered, provided, however, such fees and disbursements shall not
exceed US$25,000) will be borne by the Company.  Notwithstanding the foregoing, the
Company will not be required to pay for any expenses of any registration proceeding begun
pursuant to Section 1.4 if the registration request is subsequently withdrawn in accordance with
Section 1.4(d) (in which case all Initiating Holder or Holders and Participating Holders will bear
such expenses pro rata based upon the number of Registrable Securities that were to be registered
in the withdrawn registration), unless all Holders agree to forfeit their right to have the Company
bear the expenses of one (1) registration pursuant to Section 1.4.  Except as provided in this
Section 1.7(b), all expenses incurred in connection with a registration requested pursuant to
Section 1.4, including, without limitation, all registration, filing and qualification fees (including
"blue sky" fees), printers' and accounting fees, fees and disbursements of counsel for the selling
Holder or Holders (but not fees and disbursements of counsel for the Company), will be borne
pro rata by the Holder or Holders participating in the registration.

    1.8         Delay of Registration

                  No Holder will have any right to obtain or seek an injunction restraining or
otherwise delaying any such registration as the result of any controversy that might arise with
respect to the interpretation or implementation of this Section 1.

    1.9         Indemnification

                  In the event any Registrable Securities are included in an Offering Document
under this Section 1:

                  (a)         To the fullest extent permitted by law, the Company covenants and
agrees to indemnify and hold harmless each Holder (other than the Founder Investors), and any
underwriter (as defined in the Act) together with their officers, directors, partners, stockholders,
trustees, affiliates (within the meaning of Rule 405 under the Act), beneficial owners, attorneys,
accountants and representatives and each person, if any, who controls such Holder or
underwriter, within the meaning of the Act or the 1934 Act (the "Indemnified Persons"), from
and against any and all losses, claims, actions, damages, liabilities and expenses (joint or several)
(including, without limitation, attorneys' fees and disbursements and all other expenses incurred
in investigating, preparing, compromising or defending against any such litigation, commenced
or threatened, or any claim whatsoever and all amounts paid in settlement of any such claim or
litigation) to which any of such Indemnified Persons may become subject under the Act, the 1934
Act or other federal or state statutory law or regulation, or at common law or otherwise
(collectively "Losses") as incurred, insofar as such Losses arise out of or are based upon any of
the following (collectively a "Violation"):  (i) any untrue statement or alleged untrue statement of
a material fact contained in such Offering Documents, including any preliminary prospectus or
final prospectus contained therein or any amendments or supplements thereto, (ii) the omission
or alleged omission to state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or alleged violation by the
Company of the Act, the 1934 Act, any state securities laws or any rule or regulation
promulgated under the Act, the 1934 Act or any state securities laws; provided, however, that the
indemnity agreement contained in this Section 1.9(a) will not apply to amounts

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paid in settlement
of any such Loss if such settlement is effected without the consent of the Company (such consent
not to be unreasonably withheld), nor will the Company be liable in any such case for any such
Loss to the extent that it arises out of or is based upon a Violation that solely occurs in reliance
upon and in conformity with written information provided by and relating to an Indemnified
Person, that is furnished expressly for use in connection with such registration by such
Indemnified Person; provided further, that the foregoing indemnity agreement with respect to any
preliminary prospectus will not inure to the benefit of any Indemnified Person from whom the
person asserting any such losses, claims, damages or liabilities purchased shares in the offering,
if a copy of the prospectus (as then amended or supplemented if the Company will have
furnished any amendments or supplements thereto) was not sent or given by or on behalf of such
Indemnified Person to such person, if required by law so to have been delivered, at or prior to the
written confirmation of the sale of the shares to such person, and if the prospectus (as so
amended or supplemented) would have cured the defect giving rise to such loss, claim, damage
or liability.

                  (b)         To the extent permitted by law, each selling Holder, on a several
and not joint basis, will indemnify and hold harmless the Company, each of its directors, each of
its officers who has signed the Offering Document, each person, if any, who controls the
Company within the meaning of the Act, legal counsel and accountants for the Company, any
underwriter, any other stockholder selling securities in such Offering Document and any
controlling person of any such underwriter or other stockholder, against any Losses to which any
of the foregoing persons may become subject, under the Act, the 1934 Act or any other federal or
state statutory law or regulation or at common law or otherwise, insofar as such Losses arise out
of or are based upon any Violation, in each case to the extent (and only to the extent) that such
Violation solely occurs in reliance upon and in conformity with written information provided by
and relating to such Holder that is furnished by such Holder expressly for use in connection with
such Offering Document; provided that in no event will any indemnity under this Section 1.9(b)
exceed the net proceeds from the sale of Registrable Securities received by such Holder; and
provided, further, that the indemnity agreement contained in this Section 1.9(b) will not apply to
amounts paid in settlement of any such Loss if such settlement is effected without the consent of
such Holder (such consent not to be unreasonably withheld).

                  (c)         Promptly after receipt by an indemnified party under this
Section 1.9 of actual knowledge of any claim or the commencement of any action (including any
governmental action), as to which indemnity may be sought, such indemnified party will deliver
to the indemnifying party a written notice of the commencement thereof (but the failure to so
notify an indemnifying party will not relieve it from any liability or obligation which it may have
under this Section 1.9 or otherwise unless the failure to notify results in the forfeiture by the
indemnifying party of substantial rights and defenses and will not in any event relieve the
indemnifying party from any obligations other than the indemnification provided for herein).
The indemnifying party will have the right to participate in, and, to the extent the indemnifying
party so desires, to assume the defense thereof with counsel reasonably satisfactory to the
indemnified party.  However, the indemnified party will have the right to retain separate counsel
and to participate in the defense thereof, with the fees and expenses of such counsel to be paid by
the indemnifying party, if representation of such indemnified party by the counsel retained by the
indemnifying party would be, in the indemnified party's view, inappropriate due to actual or
potential differing interests between such indemnified party and any other party represented by
such counsel in such proceeding.  In no event will the indemnifying party be required to pay the
expenses of more than one counsel per jurisdiction as counsel for the indemnified party.  The
indemnifying party will be responsible for the expenses of such defense even if the indemnifying
party does not elect to assume such defense.  No indemnifying party may, except with the
consent of the indemnified party, consent to the entry of any judgment or enter into any
settlement which does not include as a term thereof the unconditional release of the indemnified
party of all liability in respect of such claim or litigation.

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                  (d)         If the indemnification provided for in this Section 1.9 is held by a
court of competent jurisdiction to be unavailable to an indemnified party with respect to any Loss
referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party
hereunder, will contribute to the amount paid or payable by such indemnified party as a result of
such Loss in such proportion as is appropriate to reflect the relative fault of and the relative
benefits received by the indemnifying party on the one hand and of the indemnified party on the
other in connection with the Violations that resulted in such Loss as well as any other relevant
equitable considerations.  The relative fault of the indemnifying party and of the indemnified
party will be determined by reference to, among other things, whether the Violation 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
Violation.  The relative benefits received by the indemnifying party and the indemnified party
will be determined by reference to the net proceeds and underwriting discounts and commissions
from the offering received by each such party.  In no event will any contribution by a Holder
under this Section 1.9 exceed the net proceeds from the sale of Registrable Securities received by
such Holder. 

                  (e)         Notwithstanding the foregoing, no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) will be entitled to
indemnification or contribution from any person not so guilty.

                  (f)         Notwithstanding the foregoing, to the extent that the provisions on
indemnification and contribution contained in the underwriting agreement entered into in
connection with the underwritten public offering are in conflict with the foregoing provisions, the
provisions in the underwriting agreement will control.

                  (g)         The obligations of the Company and Holders under this Section 1.9
will survive the completion of any offering of Registrable Securities in an Offering Document
under this Section 1 and otherwise.

                  (h)         The foregoing indemnification provisions are in addition to, and
not in derogation of, any statutory, equitable or common-law remedy any party may otherwise
have.  

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    1.10       Reports Under Securities Exchange Act of 1934

                  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 SEC that may at any time
permit a Holder to sell securities of the Company to the public without registration, the Company
agrees to use its best efforts:

                  (a)         to make and keep current public information about the Company
available (as those terms are understood and defined in Rule 144 under the Act), at all times the
Company is subject to the reporting requirements of the 1934 Act;

                  (b)         to file with the SEC in a timely manner all reports and other
documents required of the Company under the Act and the 1934 Act; and

                  (c)         to furnish to any Holder, so long as the Holder owns any
Registrable Securities, forthwith upon written request (i) a written statement by the Company as
to its compliance with the reporting requirements of the 1934 Act, (ii) a copy of the most recent
annual or quarterly report of the Company filed by the Company under the 1934 Act and (iii)
such other information as such Holder may reasonably request in order to avail itself of any
similar rule or regulation of the SEC that permits the selling of any such securities without
registration or pursuant to such form.

    1.11       Assignment of Registration Rights

                  The rights to cause the Company to register Registrable Securities pursuant to this
Section 1 may be assigned (but only with all related obligations) by a Holder to a Permitted
Transferee in connection with a concurrent transfer to the Permitted Transferee of the Holder's
Registrable Securities, provided, however, that (a) the Company is, within a reasonable time after
such transfer, furnished with written notice of the name and address of such Permitted Transferee
and the securities with respect to which such registration rights are being assigned, and (b) such
Permitted Transferee agrees in writing to be bound by and subject to all the terms and conditions
of this Agreement.

    1.12       Limitations on  Subsequent Registration Rights

                  From and after the date of this Agreement, the Company will not, without the
prior written consent of the Holders of two-thirds of the outstanding Registrable Securities, enter
into any agreement with any holder or prospective holder of any securities of the Company that
would (i) grant such holder registration rights senior to those granted to the Holders hereunder or
(ii) grant any "piggyback" registration rights with respect to underwritten registrations conducted
pursuant to Sections 1.2 and 1.3 hereof to any holder or prospective holder of securities that
would, if exercised, result in, or increase the level of, any cut-back (as referred to in Sections
1.2(b) or 1.3(c) hereof) in the amount of Registrable Securities any Holder seeks to register.  The
Company will not, from and after the date hereof, grant any registration rights which otherwise
conflict with or impair the registration rights granted hereunder.

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    1.13       Governmental Authorities. 

                  For the avoidance of doubt, an Initiating Holder or Holders shall have the right to
demand a registration accordance with the terms and conditions of Section 1.2 in the United
States or in any other jurisdiction where the Company's Common Stock is already publicly
traded and listed on a stock exchange or automated quotation system.  In no event shall the
Company be required under this Agreement to make any filing with, seek any approval of or
otherwise take any action with respect to any Governmental Authority in any jurisdiction where
the Company's Common Stock is not already publicly traded and listed on a stock exchange or
automated quotation system.

    1.14       Termination of Registration Rights

                  No Holder will be entitled to exercise any right provided for in this Section 1 after
(i) two (2) years following the expiration of any lock-up, market stand-off or other period (such
period not to exceed one hundred eighty (180) days) requested by the Company and the
managing underwriter of its Qualifying Offering which restricts the ability of the Holders to
transfer their Registrable Securities immediately following such Qualifying Offering or (ii) as to
any Holder, such earlier time at which all Registrable Securities held by such Holder (and any
affiliate of the Holder with whom such Holder must aggregate its sales under Rule 144) can be
sold in any ninety (90) day period without registration in compliance with Rule 144 of the Act.

2.         Miscellaneous

    2.1         Additional Investors  

                  Upon the sale of, or issuance in connection with an exchange of securities for,
shares of Series 4-A Preferred Stock to additional stockholders (the "New Investors"), the
Company, without prior action on the part of any existing Investor, may have each such New
Investor execute and deliver this Agreement.  Each such New Investor, upon execution and
delivery of this Agreement by the Company and such New Investor, will be deemed an Investor
hereunder.

    2.2         Successors and Assigns 

                  Except as otherwise provided herein, the terms and conditions of this Agreement
will inure to the benefit of and be binding upon the respective successors and assigns of the
parties (including transferees of any Registrable Securities).  The Company may not assign its
rights or obligations under this Agreement.  Nothing in this Agreement, express or implied, is
intended to confer upon any party other than the parties hereto or their respective successors and
assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

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    2.3         Governing Law; Venue

                  This Agreement is to be construed in accordance with and governed by the internal laws of the State
of New York without giving effect to any choice of law rule that would cause the application of the
laws of any jurisdiction other than the internal laws of the State of New York to the rights and duties
of the parties.  Any controversy or claim arising out of or relating to this Agreement (including,
without limitation, the interpretation, performance, breach or termination thereof) will be settled by
arbitration in San Francisco, California, administered by the American Arbitration Association
("AAA") in accordance with its then-current Commercial Arbitration Rules except insofar as such
rules conflict with this Section, and judgment on the award rendered by the arbitrators may be
entered in any court having jurisdiction thereof.  The arbitration will be conducted by three
arbitrators, one appointed by the party or parties commencing the proceeding, one appointed by the
party or parties in opposition, and the third by the two arbitrators so appointed, provided that if such
two arbitrators cannot agree on a chairman, he shall be appointed by the AAA, and provided, further,
that if the dispute is such that one or more of the parties to the dispute believes that the dispute is
such that the disputing parties cannot fairly be divided into two groups as above contemplated, such
party may make application to the AAA and if the AAA concurs in such conclusion, the AAA shall
appoint the chairman of the panel and the chairman shall appoint the other two members of the panel
after consultation with all of the parties to the dispute.  All papers, documents, evidence (whether
written or oral) and other information and materials filed with or presented to the arbitrators will be
in the English language and will constitute confidential information, and neither the parties nor the
arbitrators will disclose any such information or materials except as necessary in connection with
the arbitration or as required by applicable law.  Any demand for arbitration, requests for discovery
and other notices in connection with the arbitration may be served in the English language in
accordance with the notice provisions of this Agreement, and each party waives any right to any
other form of notice, other means of delivery or translation into any other language.  The parties will
be entitled to discover all information and materials reasonably necessary for a full understanding
of any issues reasonably raised in the arbitration.  They may use all methods of discovery permitted
under the U.S. federal rules as applied in the Northern District of California, including, without
limitation, depositions, requests for admissions, interrogatories and requests for production of
documents.  The time period for compliance will be set by the arbitrators.  The arbitrators will have
the authority to award any remedy or relief that a U.S. federal court could order or grant, including,
without limitation, monetary damages, injunctive or other equitable relief, and sanctions for abuse
or frustration of the arbitration process, provided that the arbitrators shall not have the authority to
award punitive damages.  The arbitrators will issue a written explanation of the reasons for the
award, and a full statement of the facts found and rules of law applied in reaching their decision.
Notwithstanding the foregoing, each party will have the right to a preliminary injunction or other
interim relief, pending a final award by the arbitrators, in any court of competent jurisdiction in
connection with any arbitrable claim or controversy, but only to the extent that such interim relief
is intended to preserve the adequacy or sufficiency of any final award granted by the arbitrators.

    2.4         Counterparts  

                  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.  Any signature page to this Agreement or any amendment thereto delivered by fax
machine or telecopy machine shall be binding to the same extent as an original signature page.  Any
party who delivers such a signature page agrees to later deliver an original counterpart to any party
requesting it.

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    2.5         Titles and Subtitles  

                  The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement.

    2.6         Notices

                  Any notice or other communication required or permitted to
be delivered under this Agreement shall be in writing and shall be deemed effectively given:
(i) upon personal delivery to the party to be notified; (ii) when sent by confirmed telex or facsimile
if sent during normal business hours of the recipient, if not, then on the next business day; (iii) seven
(7) days after having been sent by registered or certified air mail, return receipt requested, postage
prepaid; or (iv) three (3) days after deposit with an internationally recognized express courier,
specifying highest priority delivery, with written verification of receipt, to the address or facsimile
number set forth beneath the name of each party below (or to such other address or facsimile number
as such party may designate by ten (10) days advance written notice to the other party hereto).  Each
person making a communication hereunder by facsimile shall promptly confirm by telephone to the
person to whom such communication was addressed each communication made by it by facsimile
pursuant hereto but the absence of such confirmation shall not affect the validity of any such
communication.  

    2.7         Expenses 

                  If any action at law or in equity is necessary to enforce or interpret the terms of
this Agreement, the prevailing party will be entitled to reasonable attorney's fees, costs and
necessary disbursements in addition to any other relief to which such party may be entitled.

    2.8         Amendments and Waivers  

                  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 and either
retroactively or prospectively), only with the written consent of the Company and the Holders of
two-thirds of the Registrable Securities then outstanding.  Any amendment or waiver so effected
will be binding upon the Company, the Holders, each Permitted Transferee and all of their
respective successors and assigns whether or not such party, successor or assignee entered into or
approved such amendment or waiver.

    2.9         Aggregation of Stock

                  All Registrable Securities held or acquired by entities advised by the same
investment adviser and affiliated entities or persons will be aggregated together for the purpose
of determining the availability of any rights under this Agreement.

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    2.10       Further Assurances

                  Each Investor and the Company will from time to time and at all times hereafter
make, do, execute, or cause or procure to be made, done and executed such further acts, deeds,
conveyances, consents and assurances without further consideration, which may reasonably be
required to effect the transactions contemplated by this Agreement.

    2.11       Severability

                  If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

    2.12       Entire Agreement

                  This Agreement and the documents referred to herein constitute
the entire agreement among the parties with respect to the subject matter hereof 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.

*         *         *

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

	COMPANY:

	VSOURCE, INC.

	By:	/S/ DENNIS SMITH

Name:   Dennis Smith

Title:     Chief Financial Officer

  

	Address:	Vsource, Inc.

16875 West Bernardo Drive

Suite 250

San Diego, California 92127 

USA 

Attn:  Chief Financial Officer

	Facsimile:	1 (858) 618-5904

	with a copy to:
	Address:	Vsource (Asia) Ltd

Unit 501, AXA Centre

151 Gloucester Road, Wanchai

Hong Kong 

Attn:  General Counsel

	Facsimile:	(852) 2523-1344

SIGNATURE PAGE TO THE REGISTRATION RIGHTS AGREEMENT

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	INVESTOR:

	By:	/S/ PHILLIP KELLY

Phillip Kelly

	Address:	Phillip Kelly

Vsource, Inc.

16875 West Bernardo Drive

Suite 250

San Diego, California 92127 

USA 

	Facsimile:	1 (858) 618-5904

	with a copy to:
	Address:	Vsource (Asia) Ltd

Unit 501, AXA Centre

151 Gloucester Road, Wanchai

Hong Kong 

Attn:  General Counsel

	Facsimile:	(852) 2523-1344

SIGNATURE PAGE TO THE REGISTRATION RIGHTS AGREEMENT

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	INVESTOR:

	By:	/S/ JOHN CANTILLON

John Cantillon

	Address:	John Cantillon

Level 12, Menara HLA

No. 3, Jalan Kia Peng

50450 Kuala Lumpur, Malaysia

	Facsimile:	(60) 3 7490-8008

	with a copy to:

	Address:	Vsource (Asia) Ltd

Unit 501, AXA Centre

151 Gloucester Road, Wanchai

Hong Kong 

Attn:  General Counsel

	Facsimile:	(852) 2523-1344

SIGNATURE PAGE TO THE REGISTRATION RIGHTS AGREEMENT

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	INVESTOR:

	By:	/S/ DENNIS SMITH

Dennis Smith

	Address:	Dennis Smith
Vsource (Asia) Ltd

Unit 501, AXA Centre

151 Gloucester Road, Wanchai

Hong Kong 

	
	Facsimile:	(852) 2523-1344

with a copy to General Counsel of Vsource at the same address

SIGNATURE PAGE TO THE REGISTRATION RIGHTS AGREEMENT

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INVESTOR:

Mercantile Capital Partners I, L.P.

By: Mercantile Capital Group, LLC, its general partner

		By: Mercantile Capital Management Corp., its manager

			By:	/S/ I. STEVEN EDELSON

Name:   I. Steven Edelson

Title:     Managing Director

Asia Internet Investment Group I, LLC

By: Asia Investing Group, L.P., its managing member

         By: Asia Investors Group, LLC, its general partner

                  By: Mercantile Asia Investors, L.P., its managing member

					      By: Mercantile Asia, LLC, its general partner

						       By: 	/S/ I. STEVEN EDELSON

Name:   I. Steven Edelson

Title:     Managing Member

	Address for the foregoing Investors:

1372 Shermer Road
Northbrook, IL 60062 USA
Attn: I. Steven Edelson

Facsimile: 1 (847) 509-3715	with a copy to:

Michael Altman, Esq.

Altheimer & Gray

10 South Wacker Drive

Chicago, IL 60606	

Facsimile: 1 (312) 715-4800

SIGNATURE PAGE TO THE REGISTRATION RIGHTS AGREEMENT

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INVESTOR:

BAPEF Investments XII Ltd.

	By:	/S/ P.L. GILLSON

Name:  P.L. Gillson as Alternate Director for A.W. Guille

Title:    Director

	Address:	BAPEF Investments XII Ltd.

PO Box 431

13-15 Victoria Road

St. Peter's Port

Guernsey GY1 3ZD

	Facsimile:	(44) 1481 715 219

	For the attention of:	Connie Helyar

	
	with a copy to:	Baring Private Equity Partners (Hong Kong) Ltd.

39th Floor

One International Finance Centre

1 Harbour View Street

Central, Hong Kong

	Facsimile:	(852) 2843 9372

	For the attention of:	Jean Salata/Gordon Shaw/Stuart Hong

	with a copy to:
	Address:	Scott Benner

Heller Ehrman White & McAuliffe, LLP

Room 6308-6309, 63rd Floor, The Center

99 Queen's Road Central, Hong Kong

	
	Facsimile:	(852) 2810-6242

SIGNATURE PAGE TO THE REGISTRATION RIGHTS AGREEMENT

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INVESTOR:

Capital International Asia CDPQ Inc.

	By:	/S/ JEAN LAMOTHE

Name: Jean Lamothe

Title:    _________________________

		By:	/S/ HARSHAWARDHAN SABALE

Name: Harshawardhan Sabale

Title:    _________________________

	Address:	Capital International Asia CDPQ Inc.

1155 Rene-Levesque Blvd. West

Suite 4000

Montreal, Canada

H3B 3V2
	Facsimile:	c/o CDP Asia Investments, Inc

(852) 2877-3830
	with a copy to:
	Address:	Jeffrey S. Wood

Debevoise & Plimpton

13/F Entertainment Building

30 Queen's Road Central

Hong Kong

	Facsimile:	(852) 2810-9828

SIGNATURE PAGE TO THE REGISTRATION RIGHTS AGREEMENT

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INVESTOR:

Quilvest Asian Equity Ltd.

	By:	/S/ BRUNO SEGHIN

Name:  Bruno Seghin

Title:    

	Address:	Quilvest Asian Equity Ltd.

Suite 5408

Central Plaza

18 Harbour Road

Wanchai, Hong Kong

	Facsimile:	(852) 2526-0238
	with a copy to:
	Address:	Jeffrey S. Wood

Debevoise & Plimpton

13/F Entertainment Building

30 Queen's Road Central

Hong Kong

	Facsimile:	(852) 2810-9828

SIGNATURE PAGE TO THE REGISTRATION RIGHTS AGREEMENT

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SCHEDULE A

SCHEDULE OF INVESTORS

	

Investor Name
	
Number of Shares of Series
4-A Preferred
Stock Owned
	
	
Founder Investors: 

1.	Phillip Kelly		

2.	John Cantillon

3.	Dennis Smith

Other Investors:

4.	Mercantile Capital Partners I,
L.P.

5.	Asia Internet Investment Group I,
LLC

6.	BAPEF Investments XII Ltd.

7.	Capital International Asia CDPQ
Inc.

8.	Quilvest Asian Equity Ltd.

	

1,905

2,053

383

3,387

401

5,094

3,000

750
	
	
		
	
		

SIGNATURE PAGE TO THE REGISTRATION RIGHTS AGREEMENT

29ENDEXHIBIT 4.4

EXECUTION COPY

NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE ON EXERCISE HEREOF
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT").  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT
WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT.

Right to Purchase [         ] Shares           

of Common Stock of Vsource, Inc. 

VSOURCE, INC.

Common Stock Purchase Warrant

         VSOURCE, INC., a Delaware corporation (the "Company"), hereby certifies that, for
value received, [         ] (the "Holder") is entitled, subject to the terms set forth below, to purchase
from the Company from time to time during the Exercise Period (as defined below) [           ] ([
 ]) fully paid and nonassessable shares of common stock of the Company (the "Common Stock")
at a purchase price per share equal to the Purchase Price, as defined herein.  The number of such
shares of Common Stock and the Purchase Price are subject to adjustment as provided in this
Warrant. The initial purchase price for shares subject to this Warrant will be 01/100 Dollars
(U.S.$0.01) per share (the "Initial Purchase Price"), and will be adjusted from time to time as
provided herein.  The Initial Purchase Price or, if such price has been adjusted, the price per share
of Common Stock as last adjusted pursuant to the terms hereof is referred to as the "Purchase
Price" herein.

         The Exercise Period shall commence on April 1, 2003 at 9:00 a.m., Hong Kong time, and
end on March 30, 2006 at 5:00 p.m., Hong Kong time, but notwithstanding anything to the
contrary contained herein, this Warrant shall only be exercisable during the Exercise Period if the
Liquidity Date (as defined below) has not occurred prior to March 30, 2003.  

"Liquidity Date" means the earliest to occur of: (i) the date of registration effected by preparing
and filing a registration statement or similar document in compliance with the Securities Act, and
the declaration or ordering of effectiveness of such registration statement or document by the U.S.
Securities and Exchange Commission or, in connection with a Qualifying Offering (as defined
below) on an Authorized Exchange (as defined below) in a jurisdiction other than the United
States, any registration, qualification or completion of any procedure in compliance with the
applicable securities laws of such non-U.S. jurisdiction undertaken or made to permit the
unrestricted, lawful distribution or resale of securities to members of the general public therein,
of any of the Common Stock issuable upon conversion of the Series 4-A Convertible

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Preferred
Stock held by the Holder (the "Conversion Shares") following, or in conjunction with, the
completion of a Qualifying Offering (as defined below); (ii) the date on which the Holder is able
to publicly sell all of its issued or issuable Conversion Shares pursuant to an effective registration
statement covering such shares or in any three month period pursuant to Rule 144, provided that
a Qualifying Offering has occurred; (iii) the date of the closing of a Qualifying Sale (as defined
below); and (iv) the date of the closing of a sale of all or substantially all of the assets of the
Company for consideration that results in distributions per share to the Share Purchasers of
proceeds from such sale equivalent to the consideration that would be received in a Qualifying
Sale.  

"Qualifying Offering" means a firm commitment public offering, underwritten by an
internationally reputable investment bank selected by the Company's Board of Directors, of the
Company's Common Stock on an internationally recognized exchange or quotation system, which
exchange or quotation system shall have a minimum market capitalization, based on the market
value of all of the securities listed thereon, of US$50,000,000,000, as quoted and reported within
the EMTK Function of Bloomberg Financial Markets or if not so quoted, based upon statistics
made publicly available on such exchange, or if such statistics are not available, based upon the
reasonable discretion of the Company's Board of Directors (an "Authorized Exchange") pursuant
to an effective registration statement under the Securities Act (other than a registration statement
relating either to the sale of securities to employees of the Company pursuant to its stock option,
stock purchase or similar plan or a transaction pursuant to Rule 145 under the Securities Act) or,
in connection with a Qualifying Offering on an Authorized Exchange in a jurisdiction other than
the United States, pursuant to any registration, qualification or completion of any procedure in
compliance with the applicable securities laws and exchange rules of such non-U.S. jurisdiction
undertaken or made to permit the unrestricted, lawful distribution or resale of securities to
members of the general public therein, the public offering price per share (the "Offering Price")
of which is not less than the price that would yield an IRR (as defined below) of thirty percent
(30%) to the persons who on October 25, 2002 purchased shares of Series 4-A Convertible
Preferred Stock for cash consideration (such persons being referred to herein as the "Share
Purchasers" and such price being referred to herein as the "30% IRR Price") and in which the
aggregate net proceeds (after deductions of underwriters' commissions and offering expenses)
to the Company exceed US$20,000,000 (or the equivalent in the applicable currency).   

"IRR" means the discount rate that would make the present value of a stream of Payments (as
defined below) and Receipts (as defined below) equal zero where: 

         (i)         cash payments (the "Payments") are: 

                  (a)         the purchase consideration paid by the Share Purchasers to the Company
for Series 4-A Convertible Preferred Stock purchased on October 25, 2002; 

                  (b)         the purchase consideration paid by the Share Purchasers to the Company,
if any, for Series 4-A Convertible Preferred Stock purchased after October 25, 2002 pursuant to
the Series 4-A Convertible Preferred Stock Purchase Agreement dated as of October 23, 2002 by
and among the Company, the Share Purchasers and the other investors named therein; and 

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                  (c)         the purchase consideration paid by the Share Purchasers to the Company,
if any, for Common Stock issued upon exercise of warrants which were issued in connection with
the Series 4-A Convertible Preferred Stock, including this Warrant (the "Warrant Shares"); and 

         (ii)         amounts received (the "Receipts") are: 

                  (a)         dividend distributions and other cash payments, if any, received by the
Share Purchasers from the Company in respect of: (1) the Series 4-A Convertible Preferred Stock
and Warrant Shares and (2) any securities received by the Share Purchasers in respect of the Series
4-A Convertible Preferred Stock or Warrant Shares without additional consideration paid by the
Share Purchasers; and

                  (b)         the value of Series 4-A Convertible Preferred Stock, Warrant Shares and
any securities received by the Share Purchasers in respect of the Series 4-A Convertible Preferred
Stock or Warrant Shares without additional consideration paid by the Share Purchasers held by the
Share Purchasers on the Liquidity Date determined as (1) the aggregate value of the Series 4-A
Convertible Preferred Stock and Warrant Shares and such securities held by the Share Purchasers
on the Liquidity Date in the case of a Qualifying Offering (determined as the offering price to the
public per share of Common Stock times the number of Warrant Shares and the number of issued
or issuable Conversion Shares); (2) the aggregate purchase price of the Series 4-A Convertible
Preferred Stock, Warrant Shares and/or such securities on the Liquidity Date in the case of a
Qualifying Sale; or (3) the proceeds distributable to the Share Purchasers on the Liquidity Date in
the case of a sale of assets; and

         (iii)         the first date in the measurement of the present value will be October 25, 2002 and
the last date will be the Liquidity Date.

"Qualifying Sale" means a sale of more than fifty percent (50%) of the Company's Common
Stock on a fully diluted basis (assuming full conversion and exercise of all outstanding
convertible, exchangeable and exercisable securities, including, without limitation, securities
granted under any employee share option plan which have vested) for a purchase price per share
at least equal to the 30% IRR Price, provided however, that in the event the purchase price for
such securities is payable in marketable securities, such marketable securities shall be valued at
the average of the daily closing prices of such marketable securities over the 180 consecutive
trading days immediately preceding (and not including) the date such marketable securities are
received, and provided further, that such purchase price is payable in full at the closing in cash
or marketable securities.

1.      Exercise of Warrant.

         (a)         At any time during the Exercise Period, this Warrant may be exercised by the
Holder hereof in full or in part at any time or from time to time by surrender of this Warrant
and the subscription form annexed hereto (duly executed by the Holder), to the Company, and

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by making payment in cash or by certified check, wire transfer or any combination thereof, in
the amount obtained by multiplying (i) the number of shares of Common Stock designated by
the Holder in the subscription form by (ii) the Purchase Price then in effect. On any partial
exercise the Company will forthwith issue and deliver to or upon the order of the Holder
hereof a new Warrant of like tenor, in the name of the Holder hereof, providing in the
aggregate on the face or faces thereof for the purchase of the number of shares of Common
Stock for which such Warrant may still be exercised.

         (b)         At any time during the Exercise Period, in lieu of exercising this Warrant as
provided above, the Holder may elect to receive, without the payment by the Holder of any
additional consideration, shares of Common Stock equal to the value of this Warrant (or the
portion thereof being canceled) by surrender of this Warrant at the principal office of the
Company together with the subscription form attached hereto indicating such election, in
which event the Company shall issue to the holder hereof a number of shares of Common
Stock computed using the following formula:

              Y (A - B)

X =        A      

	Where:	X =	The number of shares of Common Stock to be issued to the Holder
pursuant to this net exercise;

		Y =	The number of shares of Common Stock designated by the Holder in the
subscription form;

		A =	The then fair market value of one share of Common Stock as of the date
the election is made;

		B =	The Purchase Price (as adjusted to the date of the election).

For purposes of this Section 1(b), the fair market value of one share of Common Stock as of a
particular date shall be determined as follows:  (i) if traded on a securities exchange or through
the Nasdaq National Market or SmallCap System, the value shall be deemed to be the lower of
the average of the closing bid price of the securities on such exchange over the five (5) day period
ending three (3) days prior to the net exercise election and the closing bid price of the securities
on such exchange on the trading day ending three (3) days prior to the net exercise election; (ii)
if traded over-the-counter, the value shall be deemed to be the lower of the average of the closing
price over the five (5) day period ending three (3) days prior to the net exercise and the closing
bid price on the trading day ending three (3) days prior to the net exercise election; and (iii) if
there is no active public market, the value shall be the fair market value thereof, as determined
in good faith by the Board of Directors of the Company.

2.         Delivery of Stock Certificates, etc., on Exercise.  As soon as practicable after the
exercise of this Warrant, the Company will cause to be issued in the name of and delivered to
the Holder hereof a certificate for the number of fully paid and nonassessable shares of
Common Stock (or Other Securities) to which the Holder shall be entitled on such exercise,
plus, in lieu of any fractional share to which the Holder

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would otherwise be entitled, cash
equal to such fraction multiplied by the then current fair market value as determined pursuant
to Section 1(b) above of one full share, together with any other stock or other securities or
property (including cash, where applicable) to which the Holder is entitled upon such
exercise.  "Other Securities" shall mean any stock (other than Common Stock) and other
securities of the Company or any other person (corporate or otherwise) which the Holder at
any time shall be entitled to receive, or shall have received, on the exercise of this Warrant, in
lieu of or in addition to Common Stock, or which at any time shall be issuable or shall have
been issued in exchange for or in replacement of Common Stock or Other Securities pursuant
to Section 3.

         The Holder shall be deemed to become the holder of, and shall be treated for all
purposes as the record holder of, the Common Stock represented by such certificate, and such
Common Stock shall be deemed to have been issued, immediately prior to the close of
business on the date on which this Warrant and notice of exercise are presented and payment
made for such Common Stock, notwithstanding that the stock transfer books of the Company
shall then be closed or that such certificates shall not then be actually delivered to the Holder.

         The issuance of Common Stock upon exercise of this Warrant shall be made without
charge to the Holder for any issuance tax with respect thereto or any other cost incurred by the
Company in connection with the exercise of this Warrant and the related issuance of Common
Stock.  The Company shall pay all expenses in connection with, and all taxes (other than stock
transfer, income, capital gain or similar taxes) and other governmental charges that may be
imposed in respect of, the issuance, sale and delivery of the Warrant and the related Common
Stock to the Holder.

3.         Adjustment

         (a)	Initial Purchase Price; Subsequent Adjustment of Price and Number of
Purchasable Shares.  The Initial Purchase Price will be adjusted from time to time as provided
below; provided that, as set forth in and subject to Section 4, in no event shall the Purchase
Price per share be adjusted to a price which is less than the par value of the Common Stock at
such time.  Upon each adjustment of the Purchase Price, the Holder will thereafter be entitled
to purchase, at the Purchase Price resulting from such adjustment, the number of shares of
Common Stock obtained by multiplying the Purchase Price in effect immediately before such
adjustment by the number of shares of Common Stock purchasable pursuant to this Warrant
immediately before such adjustment and dividing the product by the Purchase Price resulting
from such adjustment.

         (b)	Adjustment for Stock Splits and Combinations.  If the Company at any time or
from time to time after the date of this Warrant effects a subdivision of the outstanding
Common Stock, by stock split or otherwise, the Purchase Price then in effect immediately
before that subdivision shall be proportionately decreased; and, conversely, if the Company at
any time or from time to time after the date of this Warrant combines the outstanding shares
of Common Stock, by reverse stock split or otherwise, the Purchase Price then in effect
immediately before that combination shall be proportionately increased.  Any adjustment
under this Section 3(b) shall become effective at the close of business on the date the
subdivision or combination becomes effective.

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         (c)	Adjustment for Certain Dividends and Distributions.  In the event the Company at
any time or from time to time after the date of this Warrant either makes, or fixes a record date
for the determination of holders of Common Stock entitled to receive, a dividend or other
distribution payable in additional shares of Common Stock, then and in each such event the
Purchase Price then in effect shall be decreased as of the time of such issuance or, in the event
such a record date is fixed, as of the close of business on such record date, by multiplying the
Purchase Price then in effect by a fraction (1) the numerator of which is the total number of
shares of Common Stock issued and outstanding immediately prior to the time of such
issuance on the close of business on such record date, and (2) the denominator of which shall
be (i) the total number of shares of Common Stock issued and outstanding immediately prior
to the time of such issuance or the close of business on such record date plus (ii) the number
of shares of Common Stock issuable in payment of such dividend or distribution; provided,
however, that if such record date is fixed and such dividend is not fully paid or if such
distribution is not fully made on the date fixed therefor, the Purchase Price shall be
recomputed accordingly as of the close of business on such record date or date fixed therefor
and thereafter the Purchase Price shall be adjusted pursuant to this Section 3(c) as of the time
of actual payment of such dividend or distribution.  For purposes of the foregoing formula,
"the total number of shares of Common Stock issued and outstanding" on a particular date
shall include shares of Common Stock issuable upon conversion of stock or securities
convertible into Common Stock and the exercise of warrants, options or rights for the
purchase of Common Stock (or stock or securities convertible into Common Stock) which are
outstanding on such date.

         (d)	Adjustments for Other Dividends and Distributions.  In the event the Company at
any time or from time to time after the date of this Warrant makes, or fixes a record date for
the determination of holders of Common Stock entitled to receive, a dividend or other
distribution payable in securities of the Company other than shares of Common Stock, then
and in each such event, provision shall be made so that the Holder shall receive upon exercise
hereof, in addition to the number of shares of Common Stock receivable thereupon, the
amount of securities of the Company which it would have received had this Warrant been
converted into Common Stock as of the date of such event and had it thereafter, during the
period from the date of such event to and including the date of exercise, retained such
securities receivable by it as aforesaid during such period, subject to all other adjustments
called for during such period under this Section 3 with respect to the rights of the Holder.

         (e)	Adjustment for Recapitalization, Reclassification, or Exchange.  If the Common
Stock issuable upon the exercise of this Warrant is changed into the same or a different
number of shares of any class or classes of stock of the Company, whether by recapitalization,
reclassification or other exchange (other than a subdivision or combination of shares, or a
stock dividend or a reorganization, merger, consolidation or sale of assets, provided for
elsewhere in this Section 3), then and in any such event the Holder shall have the right
thereafter to exercise this Warrant to purchase the kind and amount of stock and other
securities and property receivable upon such recapitalization, reclassification or other
exchange by holders of the number of shares of Common Stock which might have been
purchased under this Warrant immediately prior to such recapitalization, reclassification or
other exchange, all subject to further adjustment as provided herein.

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         (f)	Reorganizations, Mergers, Consolidations or Sales of Assets.  If at any time or
from time to time there is a capital reorganization of the Common Stock (other than a
subdivision or combination of shares or a stock dividend or a recapitalization, reclassification
or other exchange of shares, provided for elsewhere in this Section 3) or a merger or
consolidation of the Company with or into another corporation, or the sale of all or
substantially all of the Company's assets to any other person, then, as a part of such capital
reorganization, merger, consolidation or sale, provision shall be made so that the Holder shall
thereafter be entitled to receive upon exercise of this Warrant the number of shares of stock or
other securities or property of the Company, or of the successor corporation resulting from
such capital reorganization, merger, consolidation or sale, to which a holder of the number of
shares of Common Stock deliverable upon such exercise would have been entitled on such
capital reorganization, merger, consolidation or sale.  In any such case, appropriate adjustment
shall be made in the application of the provisions of this Section 3 with respect to the rights of
the Holder after the capital reorganization, merger, consolidation or sale to the end that the
provisions of this Section 3 (including the number of shares deliverable upon exercise of this
Warrant) shall continue to be applicable after that event and shall be as nearly equivalent to
the provisions hereof as may be practicable.

         (g)	Certificate of Adjustment.  Upon the occurrence of each adjustment or
readjustment of the Purchase Price and/or the number of shares of Common Stock subject to
this Warrant, the Company at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof, and shall prepare and furnish to the Holder
a certificate setting forth such adjustment or readjustment and showing in detail the facts upon
which such adjustment or readjustment is based.

4.         Further Assurances.  The Company will take all action that may be necessary or
appropriate in order that the Company may validly and legally issue fully paid and
nonassessable shares of stock, free from all taxes, liens and charges with respect to the issue
thereof, on the exercise of all or any portion of this Warrant from time to time outstanding.
Subject to Section 13 herein, the Company will not, by amendment of its organizational
documents or through any reorganization, corporate recapitalization, transfer of assets,
consolidation, merger, dissolution, issuance or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but
will at all times in good faith assist in the carrying out of all such terms and in the taking of all
such action as may be necessary or appropriate in order to protect the rights of the Holder
under this Warrant against  impairment.  Without limiting the generality of the foregoing, the
Company will not take any action which would result in the par value of Common Stock
exceeding the Purchase Price.

5.         Notices of Record Date, etc.  In the event of:

         (a)	any taking by the Company of a record of the holders of any class of securities for
the purpose of determining the holders thereof who are entitled to receive any dividend on, or
any right to subscribe for, purchase or otherwise acquire any shares of stock of any class or
any other securities or property, or to receive any other right (other than in connection with the
Reverse Stock Split (as defined below)), or

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         (b)	any capital reorganization of the Company, any reclassification or recapitalization
of the capital stock of the Company (other than in connection with the Reverse Stock Split (as
defined below)) or any transfer of all or substantially all of the assets of the Company to or the
sale, consolidation or merger of the Company with, to or into any other person, or

         (c)	any voluntary or involuntary dissolution, liquidation or winding-up of the
Company;

then and in each such event the Company will mail or cause to be sent to the Holder, at least thirty
(30) business days prior to such record date, a notice specifying (i) the date on which any such
record is to be taken for the purpose of such dividend, distribution or right, and stating the amount
and character of such dividend, distribution or right, (ii) the date on which any such
reorganization, reclassification, recapitalization, transfer, consolidation, merger, dissolution,
liquidation or winding up is to take place, and the time, if any is to be fixed, as of which the
holders of record of Common Stock (or Other Securities) shall be entitled to exchange their
shares of Common Stock (or Other Securities) for securities or other property deliverable on such
reorganization, reclassification, recapitalization, transfer, consolidation, merger, dissolution,
liquidation or winding-up, and (iii) the amount and character of any stock or other securities, or
rights or options with respect thereto, proposed to be issued or granted, the date of such proposed
issue or grant and the persons or class of persons to whom such proposed issue or grant is to be
offered or made.  Such notice shall also state that the action in question or the record date is
subject to the effectiveness of a registration statement under the Securities Act or a favorable vote
of stockholders if either is required.  The Holder shall use its best efforts to decide whether to
exercise this Warrant (if this Warrant is exercisable at such time) within ten (10) days of its
receipt of such notice.

6.         Register; Replacement.  The Company shall keep at its principal executive office a
register in which, subject to such reasonable regulations as it may prescribe, it shall provide
for the registration, transfer and exchange of this Warrant.  The Company and any Company
agent may treat the person in whose name this Warrant is registered as the owner of this
Warrant for all purposes whatsoever, and neither the Company nor any Company agent shall
be affected by any notice to the contrary.

         Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and (i) in the case of any such loss, theft or destruction,
upon delivery of indemnity reasonably satisfactory to the Company in form and amount or (ii) in
the case of any such mutilation, upon surrender of such Warrant for cancellation at the principal
executive office, the Company, at its expense, shall promptly execute and deliver, in lieu thereof,
a new Warrant of like tenor.

         All warrants issued upon any registration of transfer or exchange of this Warrant shall be
the valid obligations of the Company, evidencing the same rights, and entitled to the same
benefits, as the Warrant surrendered upon such registration of transfer or exchange.  Except as
provided above, no service or other charge shall be imposed on the Holder for any exchange of
this Warrant.

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7.         Reservation of Stock, etc., Issuable on Exercise of Warrants.  The Company will at
all times reserve and keep available out of its authorized but unissued shares of capital stock,
solely for issuance and delivery on the exercise of this Warrant, a sufficient number of shares
of Common Stock (or Other Securities) to effect the full exercise of this Warrant and the
exercise, conversion or exchange of any other warrant or security of the Company exercisable
for, convertible into, exchangeable for or otherwise entitling the Holder to acquire shares of
Common Stock (or Other Securities), and if at any time the number of authorized but unissued
shares of Common Stock (or Other Securities) shall not be sufficient to effect such exercise,
conversion or exchange, the Company shall take such action as may be necessary to increase
its authorized but unissued shares of Common Stock (or Other Securities) to such number as
shall be sufficient for such purposes.

8.         Transfer of Warrant.  This Warrant cannot be transferred in whole or in part unless:
(i) such transfer is to a Permitted Transferee as such term is defined in that certain
Stockholders Agreement dated as of October 25, 2002 among the Company, the Holder and
the other parties named therein (the "Stockholders Agreement"), (ii) such Permitted
Transferee agrees to be bound by the terms and conditions of the Stockholders Agreement,
(iii) such transfer is made in connection with a concurrent transfer to the Permitted Transferee
of a proportional amount of the Holder's shares of Series 4-A Convertible Preferred Stock or
Common Stock issued upon conversion of those shares, provided, that if the Holder on any
occasion does not transfer, in connection with a partial transfer of its Series 4-A Convertible
Preferred Stock or Common Stock issued upon conversion of the Series 4-A Convertible
Preferred Stock, the full portion of the Warrant that such Holder would be entitled to transfer
at that time (the "Untransferred Portion"), the Holder shall have the right to transfer, in any
subsequent transfer by such Holder of its Series 4-A Convertible Preferred Stock or Common
Stock issued upon conversion of the Series 4-A Convertible Preferred Stock, the
Untransferred Portion in addition to whatever portion of Warrants such Holder would
otherwise be entitled to transfer in accordance with this subsection (iii) and (iv) such transfer
complies with all applicable securities laws.

9.         No Rights as a Stockholder.  This Warrant shall not entitle the Holder hereof to any
voting rights or other rights as a stockholder of the Company.

10.         Notices, etc.  All notices which are required to be given pursuant to this Warrant shall
be in writing and shall be delivered by certified mail, return receipt requested, first class or air
mail postage prepaid, or sent by overnight express or similarly recognized overnight delivery
with receipt acknowledged or by facsimile, with a copy thereof sent by one of the other
means.  Notices shall be deemed to have been given at the time delivered and shall be
addressed as follows or to such other address as a party may designate by proper notice
hereunder.

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	If to Holder:
		[                           ]

with a copy to:

Address: 	[                           ]

Facsimile:	[                  ]

			
	If to the Company:		Vsource, Inc.

16875 West Bernardo Drive, Suite 250

San Diego, California  92127

Attn.:	CFO

Facsimile:	1 (858) 618-5904

with a copy to:

Vsource (Asia) Ltd

Unit 501, AXA Centre

151 Gloucester Road, Wanchai

Hong Kong

Attn:  General Counsel

Facsimile:	(852) 2523-1344

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11.         Securities Laws.  By acceptance of this Warrant, the Holder represents to the
Company that the Holder is "accredited investor" within the meaning of Rule 501 of
Regulation D adopted under the Securities Act, as presently in effect, or not a "U.S. person"
within the meaning of Rule 902 adopted under the Securities Act and is acquiring the
Securities in an "offshore transaction" as defined in Rule 902, that this Warrant is being
acquired for the Holder's own account and for the purpose of investment and not with a view
to, or for sale in connection with, the distribution thereof, nor with any present intention of
distributing or selling the Warrant or the Common Stock issuable upon exercise of the
Warrant, and that it is an investor in securities of companies in the development stage and
acknowledges that it can bear the economic risk of its investment and has such knowledge and
experience in financial or business matters that it is capable of evaluating the merits and risks
of the investment in the shares subject to this Warrant.  The Holder acknowledges and agrees
that this Warrant and the Common Stock issuable upon exercise of this Warrant (if any) have
not been (and at the time of acquisition by the Holder, will not have been or will not be)
registered under the Securities Act or under the securities laws of any state, in reliance upon
certain exemptive provisions of such statutes.  The Holder further recognizes and
acknowledges that because this Warrant and the Common Stock issuable upon exercise of this
Warrant are unregistered, they may not be eligible for resale, and may only be resold in the
future pursuant to an effective registration statement under the Securities Act and any
applicable state securities laws, or pursuant to a valid exemption from such registration
requirements and that the Holder may, therefore, be required to bear the economic risk of such
investment indefinitely.

12.	         Legend.  Unless theretofore
registered for resale under the Securities Act,
each certificate for shares issued upon
exercise of this Warrant shall bear the
following or a similar legend, in addition to
any other legends required by any agreements
entered into by the Company and the Holder:

"THESE SECURITIES HAVE
NOT BEEN REGISTERED
UNDER THE SECURITIES
ACT OF 1933, AS AMENDED.
THEY MAY NOT BE SOLD,
OFFERED FOR SALE,
PLEDGED OR
HYPOTHECATED IN THE
ABSENCE OF A
REGISTRATION
STATEMENT IN EFFECT
WITH RESPECT TO THE
SECURITIES UNDER SUCH
ACT OR AN OPINION OF
COUNSEL SATISFACTORY
TO THE COMPANY THAT
SUCH REGISTRATION IS
NOT REQUIRED OR UNLESS
SOLD PURSUANT TO RULE
144 OF SUCH ACT." 

13.         Cancellation and Issuance of New
Warrant.  Notwithstanding anything to the
contrary contained herein, this Warrant
shall be deemed automatically cancelled if
the Company completes a reverse stock
split of its issued and outstanding Common
Stock at an exchange ratio of twenty to one
(the "Reverse Stock Split") by filing a
Certificate of Amendment to its Certificate
of Incorporation with the Secretary of State
of the State of Delaware to effect the
Reverse Stock Split (the "Reverse Stock
Split Completion Date").  

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         Promptly after the Reverse Stock
Split Completion Date, the Company shall
send a notice of such event to the Holder,
and upon receipt of such notice, the Holder
shall thereafter promptly deliver the original,
executed copy of this Warrant to the
Company for cancellation. Upon the
Company's receipt of the original, executed
copy of this Warrant and in exchange
therefor, the Company will cause to be issued
in the name of and delivered to the Holder
hereof the warrant attached hereto as Exhibit
A (the "New Warrant"). The issuance and
delivery of the New Warrant shall constitute
full and complete consideration for the
cancellation of this Warrant.

         For the avoidance of doubt, the
number of shares of Common Stock and per
share purchase price set forth on the first
page of the New Warrant shall not be
adjusted as a result of the Reverse Stock
Split.

         The Holder shall be deemed to
become the holder of, and shall be treated
for all purposes as the record holder of, the
New Warrant, and such New Warrant shall
be deemed to have been issued,
immediately upon the Reverse Stock Split
Completion Date, notwithstanding that the
stock transfer books of the Company shall
then be closed or that the New Warrant
shall not then be actually delivered to the
Holder.

         The issuance of the New Warrant
shall be made without charge to the Holder
for any issuance tax with respect thereto or
any other cost incurred by the Company in
connection with the issuance of the New
Warrant.  

14.         Miscellaneous.  This Warrant and
any terms hereof may be changed, waived,
discharged or terminated only by an
instrument in writing signed by the party
against which enforcement of such change,
waiver, discharge or termination is sought.
If, in any action before any court or agency
legally empowered to enforce any term, any
term is found to be unenforceable, then
such term shall be deemed modified to the
extent necessary to make it enforceable by
such court or agency, and if any term is not
so curable, the unenforceability of such
term shall not affect the other provisions of
this Warrant but this Warrant shall be
constructed as if such unenforceable term
had never been contained herein.  This
Warrant shall be construed and enforced in
accordance with and governed by the
internal laws of the State of New York,
without regard to conflict of laws
principles.  The headings in this Warrant
are for purposes of reference only, and shall
not limit or otherwise affect any of the
terms hereof.  The invalidity or
unenforceability of any provision hereof
shall in no way affect the validity or
enforceability of any other provision.

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         IN WITNESS WHEREOF, the
Company has caused this Warrant to be
executed on its behalf by one of its officers
thereunto duly authorized as of October 25,
2002.

		VSOURCE, INC.

		By:	 
Name:

Title:

SIGNATURE PAGE TO COMMON STOCK PURCHASE WARRANT II

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FORM OF SUBSCRIPTION

VSOURCE, INC.

(To be signed only on exercise of Warrant)

TO:     VSOURCE, INC.

         1.         The undersigned Holder of
the attached original, executed Warrant
hereby elects to exercise its purchase right
under such Warrant with respect to shares
of Common Stock, as defined in the
Warrant, of Vsource, Inc., a Delaware
corporation (the "Company").

         2.         The undersigned Holder is
hereby paying the aggregate purchase price
for such shares of Common Stock (the
"Exercise Shares") (i) by the enclosed
certified or official bank check payable in
United States dollars to the order of the
Company in the amount of $___________,
or (ii) by wire transfer of United States
funds to the account of the Company in the
amount of $______________, which
transfer has been made before or
simultaneously with the delivery of this
Form of Subscription pursuant to the
instructions of the Company, or (iii)
electing to exercise the attached Warrant
for _______ shares purchasable under the
Warrant pursuant to the net exercise
provisions of Section 1(b) of such Warrant.

         3.         Please issue a stock
certificate or certificates representing the
appropriate number of shares of Common
Stock in the name of the undersigned
Holder.

	Dated:	 

				 
Signature of Holder

SIGNATURE PAGE TO COMMON STOCK PURCHASE WARRANT II

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EXHIBIT A

NEITHER THIS WARRANT NOR THE
SECURITIES ISSUABLE ON EXERCISE
HEREOF HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES
ACT").  THEY MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF
A REGISTRATION STATEMENT IN
EFFECT WITH RESPECT TO THE
SECURITIES UNDER SUCH ACT OR AN
OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED OR
UNLESS SOLD PURSUANT TO RULE
144 OF SUCH ACT.

Right to Purchase [    ] Shares       

of Common Stock of Vsource, Inc. 

VSOURCE, INC.

Common Stock Purchase Warrant

         VSOURCE, INC., a Delaware
corporation (the "Company"), hereby
certifies that, for value received, [              ]
(the "Holder") is entitled, subject to the
terms set forth below, to purchase from the
Company from time to time during the
Exercise Period (as defined below) [
] ([      ]) fully paid and nonassessable shares
of common stock of the Company (the
"Common Stock") at a purchase price per
share equal to the Purchase Price, as defined
herein.  The number of such shares of
Common Stock and the Purchase Price are
subject to adjustment as provided in this
Warrant. The initial purchase price for shares
subject to this Warrant will be 01/100
Dollars (U.S.$0.01) per share (the "Initial
Purchase Price"), and will be adjusted from
time to time as provided herein.  The Initial
Purchase Price or, if such price has been
adjusted, the price per share of Common
Stock as last adjusted pursuant to the terms
hereof is referred to as the "Purchase Price"
herein.  

         This Warrant has been issued in
exchange for the cancellation of the prior
warrant granted by the Company to the
Holder dated October 25, 2002.

         The Exercise Period shall commence
on April 1, 2005 at 9:00 a.m., Hong Kong
time, and end on March 30, 2006 at 5:00
p.m., Hong Kong time, but notwithstanding
anything to the contrary contained herein,
this Warrant shall only be exercisable during
the Exercise Period if neither of the
following has occurred: (i) the Company's
consolidated Adjusted EBITDA (as defined
below) during any four consecutive fiscal
quarters beginning with the fiscal quarter
ended October 31, 2002 up to and including
the fiscal quarter ended January 31, 2004
equaled or exceeded U.S.$10 million, as
shown in the Company's audited financial
statements for such period which shall be
delivered to the Holder by April 30, 2004, or
(ii) the Liquidity Date (as defined below) has
occurred prior to January 31, 2005.
"Adjusted EBITDA" means net income or
loss available to the Company's stockholders
as adjusted for the following items: 

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         1.         the addition (deduction if a
net loss is available to stockholders) of
interest or other funding costs whether
arising on bank debt, convertible notes or
other capital instruments or funding of the
Company; 

         2.         the deduction (addition if a
net loss is available to stockholders) of
interest income earned on bank deposits or
other liquid investments held by the
Company; provided, that interest income
earned by the Company on client funds in
bank deposits held by the Company in
connection with the Company's payroll and
expense claims services shall not be
deducted (or added if a net loss is available
to stockholders);

         3.         the addition (deduction if a
net loss is available to stockholders) of
taxation expense or the deduction (addition if
a net loss is available to stockholders) of any
tax credit; 

         4.         addition (deduction if a net
loss is available to stockholders) of
depreciation of property and equipment or
other fixed assets used by the Company,
including, for the prevention of doubt, any
impairment charges against the carrying
value of such assets; 

         5.         the addition (deduction if a
net loss is available to stockholders) of
amortization of intangible assets including
goodwill and, for the prevention of doubt,
any impairment charges against the carrying
value of such assets;

         6.         the addition (deduction if a
net loss is available to stockholders) of any
extraordinary loss and the deduction
(addition if a net loss is available to
stockholders) of any extraordinary gain;

         7.         the addition (deduction if a
net loss is available to stockholders) of any
beneficial conversion feature expense;

         8.         the addition (deduction if a
net loss is available to stockholders) of any
loss arising on the extinguishment or
conversion of any loan, debt, warrant or other
capital instrument of the Company and the
deduction (addition if a net loss is available
to stockholders) of any gain arising on the
extinguishment or conversion of any loan,
debt, warrant or capital instrument of the
Company; 

         9.         the addition (deduction if a
net loss is available to stockholders) of any
non-cash stock-based compensation expense
arising from any stock or option grant made
prior to October 25, 2002, up to
U.S.$220,000;

         10.        the addition (deduction if a
net loss is available to stockholders) of any
unrealized loss arising from the translation of
foreign currency into U.S. dollars and the
deduction (addition if a net loss is available
to stockholders) of any unrealized gain
arising from the translation of foreign
currency into U.S. dollars; and

         11.        the addition (deduction if a
net loss is available to stockholders) of any
non-cash loss or expense recognized in the
accounts of the Company to the extent not
already taken into account in one of the
above adjustments and the deduction
(addition if a net loss is

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available to
stockholders) of any non-cash gain
recognized in the accounts of the Company
to the extent not already taken into account in
one of the above adjustments; provided, that
any non-cash stock-based compensation
expense arising from any stock or option
grant made after October 25, 2002 shall not
be added (or deducted if a net loss is
available).  A "non-cash" loss or expense is
an expense or loss recognized in the accounts
of the Company in accordance with United
States generally accepted accounting
principles ("US GAAP") but which is not
required to be settled or paid in cash, and a
"non-cash" gain is a gain recognized in the
accounts of the Company in accordance with
US GAAP but for which the Company will
not receive cash. 

"Liquidity Date" means the earliest to occur
of: (i) the date of registration effected by
preparing and filing a registration statement
or similar document in compliance with the
Securities Act, and the declaration or
ordering of effectiveness of such registration
statement or document by the U.S. Securities
and Exchange Commission or, in connection
with a Qualifying Offering (as defined
below) on an Authorized Exchange (as
defined below) in a jurisdiction other than
the United States, any registration,
qualification or completion of any procedure
in compliance with the applicable securities
laws of such non-U.S. jurisdiction
undertaken or made to permit the
unrestricted, lawful distribution or resale of
securities to members of the general public
therein, of any of the Common Stock
issuable upon conversion of the Series 4-A
Convertible Preferred Stock held by the
Holder (the "Conversion Shares") following,
or in conjunction with, the completion of a
Qualifying Offering (as defined below); (ii)
the date on which the Holder is able to
publicly sell all of its issued or issuable
Conversion Shares pursuant to an effective
registration statement covering such shares
or in any three month period pursuant to Rule
144, provided that a Qualifying Offering has
occurred; (iii) the date of the closing of a
Qualifying Sale (as defined below); and (iv)
the date of the closing of a sale of all or
substantially all of the assets of the Company
for consideration that results in distributions
per share to the Share Purchasers of proceeds
from such sale equivalent to the
consideration that would be received in a
Qualifying Sale.  

"Qualifying Offering" means a firm
commitment public offering, underwritten by
an internationally reputable investment bank
selected by the Company's Board of
Directors, of the Company's Common Stock
on an internationally recognized exchange or
quotation system, which exchange or
quotation system shall have a minimum
market capitalization, based on the market
value of all of the securities listed thereon, of
US$50,000,000,000, as quoted and reported
within the EMTK Function of Bloomberg
Financial Markets or if not so quoted, based
upon statistics made publicly available on
such exchange, or if such statistics are not
available, based upon the reasonable
discretion of the Company's Board of
Directors (an "Authorized Exchange")
pursuant to an effective registration
statement under the Securities Act (other
than a registration statement relating either to
the sale of securities to employees of the
Company pursuant to its stock option, stock
purchase or similar plan or a transaction
pursuant to Rule 145 under the Securities
Act) or, in connection with a Qualifying
Offering on an Authorized Exchange in a
jurisdiction other than the United States,
pursuant to any registration, qualification or
completion of any procedure in compliance
with the applicable securities laws and
exchange rules of such non-U.S. jurisdiction
undertaken or made to permit

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the
unrestricted, lawful distribution or resale of
securities to members of the general public
therein, the public offering price per share
(the "Offering Price") of which is not less
than the price that would yield an IRR (as
defined below) of thirty percent (30%) to the
persons who on October 25, 2002 purchased
shares of Series 4-A Convertible Preferred
Stock for cash consideration (such persons
being referred to herein as the "Share
Purchasers" and such price being referred to
herein as the "30% IRR Price") and in which
the aggregate net proceeds (after deductions
of underwriters' commissions and offering
expenses) to the Company exceed
US$20,000,000 (or the equivalent in the
applicable currency).   

"IRR" means the discount rate that would
make the present value of a stream of
Payments (as defined below) and Receipts
(as defined below) equal zero where: 

         	(i)         cash payments (the
"Payments") are: 

                  (a)         	the purchase
consideration paid by the Share Purchasers to
the Company for Series 4-A Convertible
Preferred Stock purchased on October 25,
2002; 

                  (b)         the purchase
consideration paid by the Share Purchasers to
the Company, if any, for Series 4-A
Convertible Preferred Stock purchased after
October 25, 2002 pursuant to the Series 4-A
Convertible Preferred Stock Purchase
Agreement dated as of October 23, 2002 by
and among the Company, the Share
Purchasers and the other investors named
therein; and 

                  (c)         the purchase
consideration paid by the Share Purchasers to
the Company, if any, for Common Stock
issued upon exercise of warrants which were
issued in connection with the Series 4-A
Convertible Preferred Stock, including this
Warrant (the "Warrant Shares"); and 

         (ii)         amounts received (the
"Receipts") are: 

                  (a)         dividend distributions
and other cash payments, if any, received by
the Share Purchasers from the Company in
respect of: (1) the Series 4-A Convertible
Preferred Stock and Warrant Shares and (2)
any securities received by the Share
Purchasers in respect of the Series 4-A
Convertible Preferred Stock or Warrant
Shares without additional consideration paid
by the Share Purchasers; and

                  (b)         the value of Series 4-A
Convertible Preferred Stock, Warrant Shares
and any securities received by the Share
Purchasers in respect of the Series 4-A
Convertible Preferred Stock or Warrant
Shares without additional consideration paid
by the Share Purchasers held by the Share
Purchasers on the Liquidity Date determined
as (1) the aggregate value of the Series 4-A
Convertible Preferred Stock and Warrant
Shares and such securities held by the Share
Purchasers on the Liquidity Date in the case
of a Qualifying Offering (determined as the
offering price to the public per share of
Common Stock times the number of Warrant
Shares and the number of issued or issuable
Conversion Shares); (2) the aggregate
purchase price of the Series 4-A Convertible
Preferred Stock, Warrant Shares and/or such
securities on the Liquidity Date in the case of
a Qualifying Sale; or (3) the proceeds
distributable to the Share Purchasers on the
Liquidity Date in the case of a sale of assets;
and

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         (iii)         the first date in the
measurement of the present value will be
October 25, 2002 and the last date will be the
Liquidity Date.

"Qualifying Sale" means a sale of more than
fifty percent (50%) of the Company's
Common Stock on a fully diluted basis
(assuming full conversion and exercise of all
outstanding convertible, exchangeable and
exercisable securities, including, without
limitation, securities granted under any
employee share option plan which have
vested) for a purchase price per share at least
equal to the 30% IRR Price, provided
however, that in the event the purchase price
for such securities is payable in marketable
securities, such marketable securities shall be
valued at the average of the daily closing
prices of such marketable securities over the
180 consecutive trading days immediately
preceding (and not including) the date such
marketable securities are received, and
provided further, that such purchase price is
payable in full at the closing in cash or
marketable securities.

1.         Exercise of Warrant.

         (a)         At any time during the Exercise
Period, this Warrant may be exercised by
the Holder hereof in full or in part at any
time or from time to time by surrender of
this Warrant and the subscription form
annexed hereto (duly executed by the
Holder), to the Company, and by making
payment in cash or by certified check, wire
transfer or any combination thereof, in the
amount obtained by multiplying (i) the
number of shares of Common Stock
designated by the Holder in the
subscription form by (ii) the Purchase Price
then in effect. On any partial exercise the
Company will forthwith issue and deliver
to or upon the order of the Holder hereof a
new Warrant of like tenor, in the name of
the Holder hereof, providing in the
aggregate on the face or faces thereof for
the purchase of the number of shares of
Common Stock for which such Warrant
may still be exercised.

         (b)         At any time during the Exercise
Period, in lieu of exercising this Warrant as
provided above, the Holder may elect to
receive, without the payment by the Holder
of any additional consideration, shares of
Common Stock equal to the value of this
Warrant (or the portion thereof being
canceled) by surrender of this Warrant at
the principal office of the Company
together with the subscription form
attached hereto indicating such election, in
which event the Company shall issue to the
holder hereof a number of shares of
Common Stock computed using the
following formula:

Y (A - B)

X =        A        

	Where:	X =	The number of shares of Common Stock to be issued to the Holder
pursuant to this net exercise;

		Y =	The number of shares of Common Stock designated by the Holder in the
subscription form;

		A =	The then fair market value of one share of Common Stock as of the date
the election is made;

		B =	The Purchase Price (as adjusted to the date of the election).

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For purposes of this Section 1(b), the fair
market value of one share of Common Stock
as of a particular date shall be determined as
follows:  (i) if traded on a securities
exchange or through the Nasdaq National
Market or SmallCap System, the value shall
be deemed to be the lower of the average of
the closing bid price of the securities on such
exchange over the five (5) day period ending
three (3) days prior to the net exercise
election and the closing bid price of the
securities on such exchange on the trading
day ending three (3) days prior to the net
exercise election; (ii) if traded
over-the-counter, the value shall be deemed
to be the lower of the average of the closing
price over the five (5) day period ending
three (3) days prior to the net exercise and
the closing bid price on the trading day
ending three (3) days prior to the net exercise
election; and (iii) if there is no active public
market, the value shall be the fair market
value thereof, as determined in good faith by
the Board of Directors of the Company.

2.         Delivery of Stock Certificates,
etc., on Exercise.  As soon as practicable
after the exercise of this Warrant, the
Company will cause to be issued in the
name of and delivered to the Holder hereof
a certificate for the number of fully paid
and nonassessable shares of Common
Stock (or Other Securities) to which the
Holder shall be entitled on such exercise,
plus, in lieu of any fractional share to
which the Holder would otherwise be
entitled, cash equal to such fraction
multiplied by the then current fair market
value as determined pursuant to Section
1(b) above of one full share, together with
any other stock or other securities or
property (including cash, where applicable)
to which the Holder is entitled upon such
exercise.  "Other Securities" shall mean any
stock (other than Common Stock) and other
securities of the Company or any other
person (corporate or otherwise) which the
Holder at any time shall be entitled to
receive, or shall have received, on the
exercise of this Warrant, in lieu of or in
addition to Common Stock, or which at any
time shall be issuable or shall have been
issued in exchange for or in replacement of
Common Stock or Other Securities
pursuant to Section 3.

         The Holder shall be deemed to
become the holder of, and shall be treated
for all purposes as the record holder of, the
Common Stock represented by such
certificate, and such Common Stock shall
be deemed to have been issued,
immediately prior to the close of business
on the date on which this Warrant and
notice of exercise are presented and
payment made for such Common Stock,
notwithstanding that the stock transfer
books of the Company shall then be closed
or that such certificates shall not then be
actually delivered to the Holder.

         The issuance of Common Stock
upon exercise of this Warrant shall be
made without charge to the Holder for any
issuance tax with respect thereto or any
other cost incurred by the Company in
connection with the exercise of this
Warrant and the related issuance of
Common Stock.  The Company shall pay
all expenses in connection with, and all
taxes (other than stock transfer, income,
capital gain or similar taxes) and other
governmental charges that may be imposed
in respect of, the issuance, sale and delivery
of the Warrant and the related Common
Stock to the Holder.

3.         Adjustment.

         (a)	Initial Purchase Price;
Subsequent Adjustment of Price and
Number of Purchasable Shares.  The Initial
Purchase Price will be adjusted from time
to time as provided below; provided that, as
set forth in and subject to Section 4, in no
event shall the Purchase Price per

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share be
adjusted to a price which is less than the
par value of the Common Stock at such
time.  Upon each adjustment of the
Purchase Price, the Holder will thereafter
be entitled to purchase, at the Purchase
Price resulting from such adjustment, the
number of shares of Common Stock
obtained by multiplying the Purchase Price
in effect immediately before such
adjustment by the number of shares of
Common Stock purchasable pursuant to
this Warrant immediately before such
adjustment and dividing the product by the
Purchase Price resulting from such
adjustment.

         (b)	Adjustment for Stock Splits and
Combinations.  If the Company at any time
or from time to time after the date of this
Warrant effects a subdivision of the
outstanding Common Stock, by stock split
or otherwise, the Purchase Price then in
effect immediately before that subdivision
shall be proportionately decreased; and,
conversely, if the Company at any time or
from time to time after the date of this
Warrant combines the outstanding shares of
Common Stock, by reverse stock split or
otherwise, the Purchase Price then in effect
immediately before that combination shall
be proportionately increased.  Any
adjustment under this Section 3(b) shall
become effective at the close of business on
the date the subdivision or combination
becomes effective.

         (c)	Adjustment for Certain
Dividends and Distributions.  In the event
the Company at any time or from time to
time after the date of this Warrant either
makes, or fixes a record date for the
determination of holders of Common Stock
entitled to receive, a dividend or other
distribution payable in additional shares of
Common Stock, then and in each such
event the Purchase Price then in effect shall
be decreased as of the time of such
issuance or, in the event such a record date
is fixed, as of the close of business on such
record date, by multiplying the Purchase
Price then in effect by a fraction (1) the
numerator of which is the total number of
shares of Common Stock issued and
outstanding immediately prior to the time
of such issuance on the close of business on
such record date, and (2) the denominator
of which shall be (i) the total number of
shares of Common Stock issued and
outstanding immediately prior to the time
of such issuance or the close of business on
such record date plus (ii) the number of
shares of Common Stock issuable in
payment of such dividend or distribution;
provided, however, that if such record date
is fixed and such dividend is not fully paid
or if such distribution is not fully made on
the date fixed therefor, the Purchase Price
shall be recomputed accordingly as of the
close of business on such record date or
date fixed therefor and thereafter the
Purchase Price shall be adjusted pursuant to
this Section 3(c) as of the time of actual
payment of such dividend or distribution.
For purposes of the foregoing formula, "the
total number of shares of Common Stock
issued and outstanding" on a particular date
shall include shares of Common Stock
issuable upon conversion of stock or
securities convertible into Common Stock
and the exercise of warrants, options or
rights for the purchase of Common Stock
(or stock or securities convertible into
Common Stock) which are outstanding on
such date.

         (d)	Adjustments for Other
Dividends and Distributions.  In the event
the Company at any time or from time to
time after the date of this Warrant makes,
or fixes a record date for the determination
of holders of Common Stock entitled to
receive, a dividend or other distribution
payable in securities of the Company other
than shares of Common Stock, then and in
each such event, provision shall be made so
that the

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Holder shall receive upon exercise
hereof, in addition to the number of shares
of Common Stock receivable thereupon,
the amount of securities of the Company
which it would have received had this
Warrant been converted into Common
Stock as of the date of such event and had
it thereafter, during the period from the
date of such event to and including the date
of exercise, retained such securities
receivable by it as aforesaid during such
period, subject to all other adjustments
called for during such period under this
Section 3 with respect to the rights of the
Holder.

         (e)	Adjustment for
Recapitalization, Reclassification, or
Exchange.  If the Common Stock issuable
upon the exercise of this Warrant is
changed into the same or a different
number of shares of any class or classes of
stock of the Company, whether by
recapitalization, reclassification or other
exchange (other than a subdivision or
combination of shares, or a stock dividend
or a reorganization, merger, consolidation
or sale of assets, provided for elsewhere in
this Section 3), then and in any such event
the Holder shall have the right thereafter to
exercise this Warrant to purchase the kind
and amount of stock and other securities
and property receivable upon such
recapitalization, reclassification or other
exchange by holders of the number of
shares of Common Stock which might have
been purchased under this Warrant
immediately prior to such recapitalization,
reclassification or other exchange, all
subject to further adjustment as provided
herein.

         (f)	Reorganizations, Mergers,
Consolidations or Sales of Assets.  If at any
time or from time to time there is a capital
reorganization of the Common Stock (other
than a subdivision or combination of shares
or a stock dividend or a recapitalization,
reclassification or other exchange of shares,
provided for elsewhere in this Section 3) or
a merger or consolidation of the Company
with or into another corporation, or the sale
of all or substantially all of the Company's
assets to any other person, then, as a part of
such capital reorganization, merger,
consolidation or sale, provision shall be
made so that the Holder shall thereafter be
entitled to receive upon exercise of this
Warrant the number of shares of stock or
other securities or property of the
Company, or of the successor corporation
resulting from such capital reorganization,
merger, consolidation or sale, to which a
holder of the number of shares of Common
Stock deliverable upon such exercise
would have been entitled on such capital
reorganization, merger, consolidation or
sale.  In any such case, appropriate
adjustment shall be made in the application
of the provisions of this Section 3 with
respect to the rights of the Holder after the
capital reorganization, merger,
consolidation or sale to the end that the
provisions of this Section 3 (including the
number of shares deliverable upon exercise
of this Warrant) shall continue to be
applicable after that event and shall be as
nearly equivalent to the provisions hereof
as may be practicable.

         (g)	Certificate of Adjustment.
Upon the occurrence of each adjustment or
readjustment of the Purchase Price and/or
the number of shares of Common Stock
subject to this Warrant, the Company at its
expense shall promptly compute such
adjustment or readjustment in accordance
with the terms hereof, and shall prepare and
furnish to the Holder a certificate setting
forth such adjustment or readjustment and
showing in detail the facts upon which such
adjustment or readjustment is based.

4.         	Further Assurances.  The
Company will take all action that may be
necessary or appropriate in order that the
Company may validly and legally issue
fully paid and nonassessable shares of
stock, free from all taxes, liens and charges
with respect to the issue thereof, on the

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exercise of all or any portion of this
Warrant from time to time outstanding.
The Company will not, by amendment of
its organizational documents or through
any reorganization, corporate
recapitalization, transfer of assets,
consolidation, merger, dissolution, issuance
or sale of securities or any other voluntary
action, avoid or seek to avoid the
observance or performance of any of the
terms of this Warrant, but will at all times
in good faith assist in the carrying out of all
such terms and in the taking of all such
action as may be necessary or appropriate
in order to protect the rights of the Holder
under this Warrant against  impairment.
Without limiting the generality of the
foregoing, the Company will not take any
action which would result in the par value
of Common Stock exceeding the Purchase
Price.

5.         Notices of Record Date,
etc.  In the event of:

         (a)	any taking by the Company of a
record of the holders of any class of
securities for the purpose of determining
the holders thereof who are entitled to
receive any dividend on, or any right to
subscribe for, purchase or otherwise
acquire any shares of stock of any class or
any other securities or property, or to
receive any other right, or

         (b)	any capital reorganization of the
Company, any reclassification or
recapitalization of the capital stock of the
Company or any transfer of all or
substantially all of the assets of the
Company to or the sale, consolidation or
merger of the Company with, to or into any
other person, or

         (c)	any voluntary or involuntary
dissolution, liquidation or winding-up of
the Company;

then and in each such event the Company
will mail or cause to be sent to the Holder, at
least thirty (30) business days prior to such
record date, a notice specifying (i) the date
on which any such record is to be taken for
the purpose of such dividend, distribution or
right, and stating the amount and character of
such dividend, distribution or right, (ii) the
date on which any such reorganization,
reclassification, recapitalization, transfer,
consolidation, merger, dissolution,
liquidation or winding up is to take place,
and the time, if any is to be fixed, as of
which the holders of record of Common
Stock (or Other Securities) shall be entitled
to exchange their shares of Common Stock
(or Other Securities) for securities or other
property deliverable on such reorganization,
reclassification, recapitalization, transfer,
consolidation, merger, dissolution,
liquidation or winding-up, and (iii) the
amount and character of any stock or other
securities, or rights or options with respect
thereto, proposed to be issued or granted, the
date of such proposed issue or grant and the
persons or class of persons to whom such
proposed issue or grant is to be offered or
made.  Such notice shall also state that the
action in question or the record date is
subject to the effectiveness of a registration
statement under the Securities Act or a
favorable vote of stockholders if either is
required.  The Holder shall use its best
efforts to decide whether to exercise this
Warrant (if this Warrant is exercisable at
such time) within ten (10) days of its receipt
of such notice.

6.         Register; Replacement.  The
Company shall keep at its principal
executive office a register in which, subject
to such reasonable regulations as it may
prescribe, it shall provide for the
registration, transfer and exchange of this
Warrant.  The Company and any Company
agent may treat the person in whose name
this Warrant is registered as the owner of
this Warrant for all purposes whatsoever,
and neither the Company nor any Company
agent shall be affected by any notice to the
contrary.

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         Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and
(i) in the case of any such loss, theft or
destruction, upon delivery of indemnity
reasonably satisfactory to the Company in
form and amount or (ii) in the case of any
such mutilation, upon surrender of such
Warrant for cancellation at the principal
executive office, the Company, at its
expense, shall promptly execute and deliver,
in lieu thereof, a new Warrant of like tenor.

         All warrants issued upon any
registration of transfer or exchange of this
Warrant shall be the valid obligations of the
Company, evidencing the same rights, and
entitled to the same benefits, as the Warrant
surrendered upon such registration of transfer
or exchange.  Except as provided above, no
service or other charge shall be imposed on
the Holder for any exchange of this Warrant.

7.         Reservation of Stock, etc.,
Issuable on Exercise of Warrants.  The
Company will at all times reserve and keep
available out of its authorized but unissued
shares of capital stock, solely for issuance
and delivery on the exercise of this
Warrant, a sufficient number of shares of
Common Stock (or Other Securities) to
effect the full exercise of this Warrant and
the exercise, conversion or exchange of any
other warrant or security of the Company
exercisable for, convertible into,
exchangeable for or otherwise entitling the
Holder to acquire shares of Common Stock
(or Other Securities), and if at any time the
number of authorized but unissued shares
of Common Stock (or Other Securities)
shall not be sufficient to effect such
exercise, conversion or exchange, the
Company shall take such action as may be
necessary to increase its authorized but
unissued shares of Common Stock (or
Other Securities) to such number as shall
be sufficient for such purposes.

8.         Transfer of Warrant.  This
Warrant cannot be transferred in whole or
in part unless: (i) such transfer is to a
Permitted Transferee as such term is
defined in that certain Stockholders
Agreement dated as of October 25, 2002
among the Company, the Holder and the
other parties named therein (the
"Stockholders Agreement"), (ii) such
Permitted Transferee agrees to be bound by
the terms and conditions of the
Stockholders Agreement, (iii) such transfer
is made in connection with a concurrent
transfer to the Permitted Transferee of a
proportional amount of the Holder's shares
of Series 4-A Convertible Preferred Stock
or Common Stock issued upon conversion
of those shares, provided, that if the Holder
on any occasion does not transfer, in
connection with a partial transfer of its
Series 4-A Convertible Preferred Stock or
Common Stock issued upon conversion of
the Series 4-A Convertible Preferred Stock,
the full portion of the Warrant that such
Holder would be entitled to transfer at that
time (the "Untransferred Portion"), the
Holder shall have the right to transfer, in
any subsequent transfer by such Holder of
its Series 4-A Convertible Preferred Stock
or Common Stock issued upon conversion
of the Series 4-A Convertible Preferred
Stock, the Untransferred Portion in addition
to whatever portion of Warrants such
Holder would otherwise be entitled to
transfer in accordance with this subsection
(iii) and (iv) such transfer complies with all
applicable securities laws.

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9.         No Rights as a Stockholder.  This
Warrant shall not entitle the Holder hereof
to any voting rights or other rights as a
stockholder of the Company.

10.        Notices, etc.  All notices which are
required to be given pursuant to this
Warrant shall be in writing and shall be
delivered by certified mail, return receipt
requested, first class or air mail postage
prepaid, or sent by overnight express or
similarly recognized overnight delivery
with receipt acknowledged or by facsimile,
with a copy thereof sent by one of the other
means.  Notices shall be deemed to have
been given at the time delivered and shall
be addressed as follows or to such other
address as a party may designate by proper
notice hereunder.

	If to Holder:
		[                           ]

with a copy to:

Address: 	[                           ]

Facsimile:	[                  ]

			
	If to the Company:		Vsource, Inc.

16875 West Bernardo Drive, Suite 250

San Diego, California  92127

Attn.:	CFO

Facsimile:	1 (858) 618-5904

with a copy to:

Vsource (Asia) Ltd

Unit 501, AXA Centre

151 Gloucester Road, Wanchai

Hong Kong

Attn:  General Counsel

Facsimile:	(852) 2523-1344

11.	        Securities Laws.  By acceptance of this Warrant, the Holder represents to the
Company that the Holder is "accredited investor" within the meaning of Rule 501 of
Regulation D adopted under the Securities Act, as presently in effect, or not a "U.S. person"
within the meaning of Rule 902 adopted under the Securities Act and is acquiring the
Securities in an "offshore transaction" as defined in Rule 902, that this Warrant is being
acquired for the Holder's own account and for the purpose of investment and not with a view
to, or for sale in connection with, the distribution thereof, nor with any present intention of
distributing or selling the Warrant or the Common Stock issuable upon exercise of the
Warrant, and that it is an investor in securities of companies in the development stage and
acknowledges that it can

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bear the economic risk of its investment and has such knowledge and
experience in financial or business matters that it is capable of evaluating the merits and risks
of the investment in the shares subject to this Warrant.  The Holder acknowledges and agrees
that this Warrant and the Common Stock issuable upon exercise of this Warrant (if any) have
not been (and at the time of acquisition by the Holder, will not have been or will not be)
registered under the Securities Act or under the securities laws of any state, in reliance upon
certain exemptive provisions of such statutes.  The Holder further recognizes and
acknowledges that because this Warrant and the Common Stock issuable upon exercise of this
Warrant are unregistered, they may not be eligible for resale, and may only be resold in the
future pursuant to an effective registration statement under the Securities Act and any
applicable state securities laws, or pursuant to a valid exemption from such registration
requirements and that the Holder may, therefore, be required to bear the economic risk of such
investment indefinitely.

12.	        Legend.  Unless theretofore
registered for resale under the Securities Act,
each certificate for shares issued upon
exercise of this Warrant shall bear the
following or a similar legend, in addition to
any other legends required by any agreements
entered into by the Company and the Holder:

"THESE SECURITIES HAVE
NOT BEEN REGISTERED
UNDER THE SECURITIES
ACT OF 1933, AS AMENDED.
THEY MAY NOT BE SOLD,
OFFERED FOR SALE,
PLEDGED OR
HYPOTHECATED IN THE
ABSENCE OF A
REGISTRATION
STATEMENT IN EFFECT
WITH RESPECT TO THE
SECURITIES UNDER SUCH
ACT OR AN OPINION OF
COUNSEL SATISFACTORY
TO THE COMPANY THAT
SUCH REGISTRATION IS
NOT REQUIRED OR UNLESS
SOLD PURSUANT TO RULE
144 OF SUCH ACT." 

13.	         Miscellaneous.  This Warrant and any
terms hereof may be changed, waived,
discharged or terminated only by an
instrument in writing signed by the party
against which enforcement of such change,
waiver, discharge or termination is sought.
If, in any action before any court or agency
legally empowered to enforce any term, any
term is found to be unenforceable, then
such term shall be deemed modified to the
extent necessary to make it enforceable by
such court or agency, and if any term is not
so curable, the unenforceability of such
term shall not affect the other provisions of
this Warrant but this Warrant shall be
constructed as if such unenforceable term
had never been contained herein.  This
Warrant shall be construed and enforced in
accordance with and governed by the
internal laws of the State of New York,
without regard to conflict of laws
principles.  The headings in this Warrant
are for purposes of reference only, and shall
not limit or otherwise affect any of the
terms hereof.  The invalidity or
unenforceability of any provision hereof
shall in no way affect the validity or
enforceability of any other provision.

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IN WITNESS WHEREOF, the Company has
caused this Warrant to be executed on its
behalf by one of its officers thereunto duly
authorized as of [          ], 2002.

		VSOURCE, INC.

		By:	 
Name:

Title:

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FORM OF SUBSCRIPTION

VSOURCE, INC.

(To be signed only on exercise of Warrant)

TO:    VSOURCE, INC.

         4.         The undersigned Holder of
the attached original, executed Warrant
hereby elects to exercise its purchase right
under such Warrant with respect to shares
of Common Stock, as defined in the
Warrant, of Vsource, Inc., a Delaware
corporation (the "Company").

         5.         The undersigned Holder is
hereby paying the aggregate purchase price
for such shares of Common Stock (the
"Exercise Shares") (i) by the enclosed
certified or official bank check payable in
United States dollars to the order of the
Company in the amount of $___________,
or (ii) by wire transfer of United States
funds to the account of the Company in the
amount of $______________, which
transfer has been made before or
simultaneously with the delivery of this
Form of Subscription pursuant to the
instructions of the Company, or (iii)
electing to exercise the attached Warrant
for _______ shares purchasable under the
Warrant pursuant to the net exercise
provisions of Section 1(b) of such Warrant.

         6.         Please issue a stock
certificate or certificates representing the
appropriate number of shares of Common
Stock in the name of the undersigned
Holder.

	Dated:	 

				 
Signature of Holder

28END

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