Document:

EXHIBIT 4.1

EXECUTION COPY

VSOURCE, INC.

SERIES 4-A CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT

Dated as of October 23, 2002

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TABLE OF CONTENTS

				Page

	1	Purchase and Sale of Stock and Warrants	1
		1.1	Sale and Issuance of Series 4-A Preferred Stock and Warrants	1
		1.2	Closings.

	2
	2	Representations and Warranties of the Company.	3
		2.1	Organization and Standing.	4
		2.2	Capitalization	4
		2.3	Authorization of Agreements.	6
		2.4	Absence of Defaults and Conflicts.	6
		2.5	Absence of Proceedings.	6
		2.6	Intellectual Property.	7
		2.7	Subsidiaries.	8
		2.8	Liabilities.	8
		2.9	Brokers.	8
		2.10	SEC Filings.	8
		2.11	Financial Statements.	9
		2.12	Tax Returns, Payments and Elections	9
		2.13	Non-Competition Agreements.	9
		2.14	Offering.	10
		2.15	Certain Payments.	10
		2.16	Government Consents.	10
		2.17	Compliance with Laws; Permits.	10
		2.18	Absence of Stockholders Agreements	10
		2.19	Option Plans.	10
		2.20	Maintenance of Insurance.	11
		2.21	Gateway Contract.	11
		2.22	MSC Status	11
		2.22	No Other Representations	11
		2.23	Reliance by Investors.

	11
	3	Representations and Warranties of the Investors.	11
		3.1	Authorization.	11
		3.2	Purchase Entirely for Own Account.	11
		3.3	Disclosure of Information.	12
		3.4	Investment Experience.	12
		3.5	Accredited Investor; Non-U.S. Persons.	12
		3.6	Restricted Securities.	12
		3.7	Limitations on Disposition.	13
		3.8	Legends.	13
		3.9	Reliance by Company.	13
		3.10	No Reliance on Others.

	14
	4	Conditions to Investors' Obligations at Each Closing.	14

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		4.1	Representations and Warranties.	14
		4.2	Performance.	14
		4.3	Compliance Certificate.	14
		4.4	Secretary's Certificate.	14
		4.5	Certificate of Designation.	14
		4.6	Permits, Qualifications and Consents.	14
		4.7	Proceedings and Documents.	14
		4.8	Opinion of Company Counsel.	15
		4.9	Stockholders Agreement.	15
		4.10	Convertible Securities Exchange Agreement.	15
		4.11	Amended Bylaws.	15
		4.12	Board of Directors.	15
		4.13	Key Person Life Insurance.	15
		4.14	Exchange of Securities.	15
		4.15	Outstanding Convertible Securities and Series B Warrants.	15
		4.16	Registration Rights Agreement.	16
		4.17	Schedule of Exceptions.

	16
	5	Conditions to Investors' Obligations at the Second Closing.	16
		5.1	Achievement of Second Closing Milestone.

	16
	6	Conditions to the Company's Obligations at Each Closing.	17
		6.1	Representations and Warranties.	17
		6.2	Payment of Purchase Price.

	17
	7	Miscellaneous.	17
		7.1	Survival of Representations, Warranties and Covenants.	17
		7.2	Successors and Assigns.	17
		7.3	Use of Proceeds.	17
		7.4	Governing Law; Venue.	18
		7.5	Acknowledgment.	18
		7.6	Counterparts.	19
		7.7	Titles and Subtitles.	19
		7.8	Notices.	19
		7.9	Finder's Fee.	9
		7.10	Expenses.	19
		7.11	Amendments and Waivers.	19
		7.12	Severability.	20
		7.13	Indemnification.	20
		7.14	Reverse Stock Split.	21
		7.15	Further Assurances.	21
		7.16	Entire Agreement.	21

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SCHEDULES AND EXHIBITS

	SCHEDULE 1		SCHEDULE OF INVESTORS
	SCHEDULE 2		SCHEDULE OF EXCEPTIONS
	SCHEDULE 3		PRE-FIRST CLOSING CAPITALIZATION CHART
	EXHIBIT A		CERTIFICATE OF DESIGNATION
	EXHIBIT B		FORM OF WARRANT
	EXHIBIT C		OPINION OF COUNSEL
	EXHIBIT D		STOCKHOLDERS AGREEMENT
	EXHIBIT E		CONVERTIBLE SECURITIES EXCHANGE AGREEMENT
	EXHIBIT F		AMENDED BYLAWS
	EXHIBIT G		REGISTRATION RIGHTS AGREEMENT

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VSOURCE, INC.

SERIES 4-A CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT

            THIS SERIES 4-A CONVERTIBLE PREFERRED STOCK PURCHASE
AGREEMENT (this "Agreement") is made as of October 23, 2002 by and among Vsource, Inc.,
a Delaware corporation (the "Company"), the purchasers initially listed on Schedule 1 hereto (the
"Initial Investors"), and each other purchaser who becomes a party to this Agreement pursuant to
the provisions of Section 1.2(d) hereof (the "Additional Investors", and together with the Initial
Investors, the "Investors").

            Whereas, the Company desires to issue to the Investors, and the Investors desire to purchase
from the Company, certain of the Company's equity securities on the terms and conditions set forth
in this Agreement; and

            Whereas, in connection with this share sale and purchase, the Company is engaging in a
series of related transactions which are designed to simplify the Company's overall capital structure;

            Now, therefore, the parties hereby agree as follows:

1.            Purchase and Sale of Stock and Warrants.

            1.1   Sale and Issuance of Series 4-A Preferred Stock and Warrants.

                        (a)   The Company shall adopt and file with the Secretary of State of the State
of Delaware on or before the First Closing (as defined below) the Certificate of Designation in
the form attached hereto as Exhibit A (the "Certificate of Designation").

                        (b)   On or prior to the First Closing, the Company shall have authorized (i) the
sale and issuance to the Investors of the Series 4-A Convertible Preferred Stock, par value
U.S.$0.01 per share (the "Series 4-A Preferred Stock"), (ii) the sale and issuance to the Investors
of warrants, in the form of Exhibit B hereto (each, a "Warrant"), to purchase common stock, par
value U.S.$0.01 per share, of the Company (the "Common Stock") at an exercise price of
U.S.$0.01 per share, and (iii) the issuance of the shares of Common Stock to be issued upon
conversion of the Series 4-A Preferred Stock and the exercise of the Warrants.  The Series 4-A
Preferred Stock shall have the rights, preferences, privileges and restrictions set forth in the
Certificate of Designation.

                        (c)   The shares of Common Stock issuable upon conversion of the Series 4-A
Preferred Stock are sometimes herein referred to as the "Conversion Shares".  The shares of the
Company's Common Stock issuable upon exercise of the Warrants are referred to herein as the
"Warrant Shares".  The Series 4-A Preferred Stock, Conversion Shares, Warrants and Warrant
Shares are sometimes herein referred to collectively as the "Securities".

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            1.2   Closings.

                        (a)   Closings Generally. Subject to the terms and conditions of this Agreement,
each Investor agrees, severally and not jointly, to purchase at each Closing and the Company
agrees to sell and issue to each Investor at each Closing, that number of shares of the Company's
Series 4-A Preferred Stock and Warrants set forth opposite such Investor's name on Schedule 1
hereto for the relevant Closing at the purchase price set forth thereon.

                        (b)   First Closing. The first purchase and sale of the Series 4-A Preferred Stock
and Warrants shall take place at the offices of Morrison & Foerster, 21st Floor, Entertainment
Building, 30 Queen's Road Central, Hong Kong at or before 3 p.m. Hong Kong time on
October 25, 2002, or at such other time and place as the Company and the Initial Investors
mutually agree upon orally or in writing (which time and place are designated as the "First
Closing").  At the First Closing, the Company shall deliver to each Initial Investor certificates
representing the Series 4-A Preferred Stock and Warrants that such Initial Investor is purchasing
at the First Closing against payment of the purchase price therefor (less the Retained First
Closing Purchase Price which is defined in Section 7.14 herein) by certified check, wire transfer
or any combination thereof.  

                        (c)   Second Closing.  If the Company achieves the Second Closing Milestone,
and determines in its sole discretion to deliver to the Initial Investors a Second Closing Milestone
Notice, as defined in Section 5.1 of this Agreement, and has satisfied all of the other closing
conditions set forth in Section 5 of this Agreement, then a second purchase and sale of the
Series 4-A Preferred Stock and Warrants, for such number of shares and Warrants as listed on
Schedule 1 hereto (the "Second Closing"), shall take place on a date mutually agreed by the
Initial Investors and the Company not later than sixty (60) Business Days from the date of the
Second Closing Milestone Notice.  In this Agreement, "Business Day" means any day except a
Saturday, Sunday, a statutory public holiday in Hong Kong or other day on which commercial
banks in Hong Kong are authorized or permitted by law to close.  At the Second Closing, if any,
the Company shall deliver to each participating Initial Investor certificates representing the
Series 4-A Preferred Stock and Warrant that such Initial Investor is purchasing at the Second
Closing against payment of the purchase price therefor by certified check, wire transfer or any
combination thereof.  The Second Closing shall take place at the offices of Morrison & Foerster,
21st Floor, Entertainment Building, 30 Queen's Road Central, Hong Kong or at such other place
as the Company and Initial Investors mutually agree upon orally or in writing.  For the avoidance
of doubt, the Company shall not be obligated to offer or sell Series 4-A Preferred Stock or
Warrants pursuant to this Section 1.2(c) unless and until it has delivered a Second Closing
Milestone Notice.

                        (d)   Additional Closings.  Subject to the Initial Investors' right of first refusal
set forth in Section 1.2(e), the Company may offer and sell up to the balance of the authorized
number of shares of Series 4-A Preferred Stock not sold at the First Closing and the Second
Closing (but not any authorized but unissued warrants) to such purchasers as it shall select,
subject to the following conditions: (i) it shall first obtain the consent of the Initial Investors,
which consent shall not be unreasonably withheld; (ii) such shares shall be sold at a price not less
than the price per share paid at the First Closing; and (iii) such additional purchaser or purchasers

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shall subscribe for, in the aggregate, not more than 50% of the number of Series 4-A Preferred
Stock subscribed for by the Initial Investors in the aggregate at the First Closing and the Second
Closing (regardless of whether the Second Closing actually occurs).  Any such purchaser shall
execute and deliver a counterpart signature page to, and thereby, without further action by any
Initial Investor, become a party to and be deemed an Additional Investor under, this Agreement
(except with respect to Sections 1.2(b) and (c) above), the Stockholders Agreement (as defined
below) and the Registration Rights Agreement (as defined below), and all schedules and exhibits
hereto and thereto shall automatically be updated to reflect such Additional Investor as a party
hereto and thereto, and the shares sold to such Additional Investors shall not be subject to the
preemptive rights set forth in Article X of the Certificate of Designation.  The closing of the
purchase and sale of three-fourths (3/4's) of the aggregate amount of the Series 4-A Preferred
Stock to be sold to such Additional Investors shall be consummated not later than the date falling
sixty (60) days after the First Closing, and the closing of the purchase and sale of the remaining
one-fourth (1/4) of such Series 4-A Preferred Stock shall be consummated on the date of the
Second Closing (collectively, the "Additional Closings").  At the Additional Closings, if any, the
Company shall deliver to each Additional Investor a certificate representing the Series 4-A
Preferred Stock that such Additional Investor is purchasing against payment of the purchase price
therefor by certified check, wire transfer or any combination thereof.  The Additional Closings
shall take place at the offices of Morrison & Foerster, 21st Floor, Entertainment Building, 30
Queen's Road Central, Hong Kong at or before 3 p.m. Hong Kong time on the dates specified
above (each such time and place, together with the First Closing and the Second Closing and any
First Refusal Closing (as defined below), are designated as a "Closing").

                        (e)   Right of First Refusal.  If the Company proposes to sell any shares of
Series 4-A Preferred Stock pursuant to an offer from an additional purchaser or purchasers as
provided in Section 1.2(d), the Company must first give each Initial Investor written notice of the
number of shares to be sold and the proposed date of sale (the "First Refusal Notice").  The
Initial Investors will have thirty (30) days from the date of the First Refusal Notice to agree to
purchase all, but not less than all, of the shares offered by the Company in the First Refusal
Notice at the per share purchase price paid in the First Closing, by giving written notice to the
Company specifying the allocation of such shares among the Initial Investors.  The closing of any
such sale to each Initial Investor will occur on the date specified in the First Refusal Notice (a
"First Refusal Closing"), at which time the Company shall deliver to each Initial Investor a
certificate representing the Series 4-A Preferred Stock that such Initial Investor is purchasing
against payment of the purchase price therefor by certified check, wire transfer or any
combination thereof.  The First Refusal Closings shall take place at the offices of Morrison &
Foerster, 21st Floor, Entertainment Building, 30 Queen's Road Central, Hong Kong.  If the Initial
Investors fail to exercise this right of first refusal to purchase all of the offered shares of Series 4-A Preferred Stock within the ten day period specified above, the Company may sell such shares
to the additional purchaser or purchasers in accordance with Section 1.2(d).  

2.            Representations and Warranties of the Company.  As used herein, (i) any reference to any
event, change or effect being "material" with respect to the Company or any Subsidiary (as
defined herein) means an event, change or effect which is material in relation to the financial
condition, properties, business, operations, assets or results of operations of the Company and

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each Subsidiary, taken as a whole, and (ii) the term "Material Adverse Effect" on the Company
means a material adverse effect on the financial condition, properties, business, operations,
assets, results of operations or prospects of the Company and its Subsidiaries, taken as a whole.
As of each Closing, the Company hereby represents and warrants to, and covenants with, each
Investor, except as set forth on the Schedule of Exceptions attached as Schedule 2 (as the same is
updated and amended for each Closing), which shall be delivered to such Investor at each
Closing in which such Investor participates (the "Schedule of Exceptions"), which exceptions
shall be deemed to be representations and warranties as if made hereunder, as follows:

            2.1   Organization and Standing.  The Company has been duly incorporated, is validly
existing and in good standing under the laws of the State of Delaware and has all necessary
corporate power and authority to own, lease and operate its properties and to conduct its business
in the manner presently conducted and to enter into and perform its obligations under this
Agreement, the Stockholders Agreement, the Convertible Securities Exchange Agreement (as
defined below), the Warrants and the Certificate of Designation.  The Company and each of the
Subsidiaries is duly qualified as a foreign corporation to transact business and is in good standing
in each other jurisdiction in which such qualification is required, except where the failure to so
qualify or to be in good standing would not result in a Material Adverse Effect.  The Company is
not required to register as an "investment company" within the meaning of the Investment
Company Act of 1940.  The Company has made available to the Investors a true, complete and
correct copy of the Company's certificate of incorporation, certificates of designation and bylaws
and the constitution documents of each Subsidiary, each as amended to date (collectively, the
"Organizational Documents").  The Organizational Documents are in full force and effect.  

            2.2   Capitalization.  	

                        (a)   Authorized Capital.  The authorized capital of the Company consists, or
will consist immediately prior to the First Closing, of:

                                    (i)   Preferred Stock.  5,000,000 shares of preferred stock, par value
U.S.$0.01 per share, of which (i) 2,802,000 shares have been designated Series 1-A Convertible
Preferred Stock (the "Series 1-A Preferred Stock"), 1,436,055 of which are issued and
outstanding, (ii) 1,672,328 shares have been designated Series 2-A Convertible Preferred Stock
(the "Series 2-A Preferred Stock"), 1,127,867 of which are issued and outstanding, (iii) 500,000
shares have been designated Series 3-A Convertible Preferred Stock (the "Series 3-A Preferred
Stock"), none of which is issued and outstanding, and (iv) 25,000 shares have been designated
Series 4-A Preferred Stock, all of which may be sold pursuant to this Agreement, the Convertible
Securities Exchange Agreement (as defined below) and the Offer (as defined in the Stockholders
Agreement).  The rights, privileges and preferences of the Series 1-A Preferred Stock, Series 2-A
Preferred Stock and Series 3-A Preferred Stock are as stated in the Organizational Documents,
and the rights, privileges and preferences of the Series 4-A Preferred Stock are as stated in the
Certificate of Designation.

                                    (ii)   Common Stock.  500,000,000 shares of Common Stock, of
which 35,056,373 shares are issued and outstanding, and the full number of shares of Common
Stock that shall be deliverable upon the conversion, in accordance with the Certificate of

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Designation, of all shares of Series 4-A Preferred Stock that may be issued and outstanding from
time to time have been reserved to meet the obligations of the Company in respect of the
Conversion Shares and the Warrant Shares.  The chart attached to this Agreement as Schedule 3
is a true representation of the authorized capital of the Company immediately prior to the First
Closing on a fully diluted basis.

                        (b)   Authorization.  All issued and outstanding shares of capital stock of the
Company have been duly authorized and validly issued and are fully paid and non-assessable;
none of the outstanding shares of capital stock of the Company have been issued in violation of
the preemptive or other similar rights of any person or in violation of any applicable securities
laws or regulations.  Except as described in the Schedule of Exceptions or as contemplated by
this Agreement, immediately prior to the First Closing there are no shares of capital stock or
other securities of the Company or any Subsidiary (i) reserved for issuance or (ii) subject to
preemptive rights or any outstanding subscriptions, options, warrants, calls, rights, convertible
securities or other agreements or other instruments outstanding or in effect giving any person the
right to acquire any shares of capital stock or other securities of the Company or any Subsidiary
or any commitments of any character relating to the issued or unissued capital stock or other
securities of the Company or any Subsidiary.  Except as specified in the Schedule of Exceptions
or as contemplated in this Agreement, immediately prior to the First Closing the Company does
not have outstanding any bonds, debentures, notes or other obligations the holders of which have
the right to vote (or which are convertible into or exercisable for securities having the right to
vote) with the stockholders of Company.  The sale of the Securities are not subject to any
preemptive rights or rights of first refusal and, when issued and delivered in compliance with the
provisions of this Agreement, the Warrants and/or the Certificate of Designation, the Securities
will be duly and validly issued, fully paid and nonassessable, and will be free of any Liens (as
defined below), encumbrances or restrictions on transfer; provided, however, that (a) the
Securities may be subject to restrictions on transfer under applicable securities laws as set forth
herein or as otherwise required by such laws at the time a transfer is proposed, and (b) the
Securities may only be assigned in accordance with Section 3.7 hereof and the Stockholders
Agreement.

                        (c)   Ownership by Initial Investors.  Upon and immediately after the
completion of the First Closing, the Series 4-A Preferred Stock issued to the Initial Investors
shall represent at least 14.848% of the issued and outstanding Common Stock on a fully diluted
basis (excluding the Warrant Shares), and upon and immediately after the completion of the
Second Closing, if it occurs, the aggregate of the Series 4-A Preferred Stock issued to the Initial
Investors at the First Closing and the Second Closing shall represent at least 18.664% of the
issued and outstanding Common Stock on a fully diluted basis (excluding the Warrant Shares);
provided, that any Common Stock or securities convertible or exchangeable into Common Stock
issued after the First Closing, other than in connection with the Offer (as defined in the
Stockholders Agreement), and, for the avoidance of doubt, any shares of Series 4-A Preferred
Stock issued at an Additional Closing and Common Stock issued or issuable upon the conversion
of such additional Series 4-A Preferred Stock, and any of the 1,761,724 shares of Common Stock
issuable upon exercise or conversion of the convertible securities identified as "Other Warrants
and Options" in Schedule 3 hereto, if and only if the exercise price or strike price of such Other
Warrants and Options is higher than the market price of such Other Warrants and Options at the
date of certification as provided in the Stockholders Agreement, shall not be included in
determining the number of

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issued and outstanding shares of Common Stock on a fully diluted
basis for purposes of this Section 2.2(c).

            2.3   Authorization of Agreements.  This Agreement, the Stockholders Agreement, the
Convertible Securities Exchange Agreement, the Registration Rights Agreement and the
Warrants have been duly authorized, executed and delivered by the Company, and this
Agreement, the Stockholders Agreement, the Convertible Securities Exchange Agreement, the
Registration Rights Agreement and the Warrants constitute valid and legally binding obligations
of the Company, enforceable in accordance with their terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable remedies, and (iii) to the
extent the indemnification and contribution provisions contained in this Agreement, the
Stockholders Agreement and the Registration Rights Agreement may be limited by applicable
securities laws.  The Board of Directors of the Company has duly approved the Certificate of
Designation.  

            2.4   Absence of Defaults and Conflicts.  Except as set forth in the Schedule of
Exceptions, the Company is not in violation or default of any provision of its Organizational
Documents or of any instrument, judgment, order, writ, decree or contract to which it is a party or
by which it is bound in writing, or, to the best of its knowledge, of any provision of any statute,
rule or regulation which is, to the best of the Company's knowledge, applicable to the Company,
except for such violations or defaults which would not result in a Material Adverse Effect.  The
execution, delivery and performance of this Agreement, the Stockholders Agreement, the
Convertible Securities Exchange Agreement, the Registration Rights Agreement and the
Warrants, and the consummation of the transactions contemplated hereby and thereby will not
result in any such violation or be in conflict with or constitute, with or without the passage of
time and giving of notice, either a default under any such provision, instrument, judgment, order,
writ, decree or contract or an event that results in the creation of any lien, charge or encumbrance
upon any assets of the Company or the suspension, revocation, impairment, forfeiture or
nonrenewal of any permit, license, authorization or approval applicable to the Company, its
business or operations or any of its assets or properties, except for such results which would not
result in a Material Adverse Effect.

            2.5   Absence of Proceedings.  Except as described in the Company's Amendment No.
2 to Annual Report on Form 10-K for the fiscal year ended January 31, 2002 (the "Form 10-K"),
Quarterly Reports on form 10-Q filed since the date of the Form 10-K and any amendments
thereto (the "Form 10-Qs") and Current Reports on Form 8-K filed since the date of the Form
10-K (the "Form 8-Ks", and together with the Form 10-K and the Form 10-Qs, the "Public
Filings"), there is no action, suit, proceeding, inquiry or investigation before or brought by any
court or governmental agency or body, domestic or foreign, now pending, or, to the knowledge of
the Company, threatened, against or affecting the Company or any Subsidiary which might
reasonably be expected individually or in the aggregate to result in a Material Adverse Effect, or
which might reasonably be expected to materially and adversely affect the business, properties or
assets of the Company or any Subsidiary or the consummation of the transactions contemplated
in this Agreement, the Stockholders Agreement, the Convertible Securities Exchange Agreement,

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the Registration Rights Agreement or the Certificate of Designation or the performance by the
Company of its obligations hereunder.

            2.6   Intellectual Property.

                        (a)   Intellectual Property.  The term "Intellectual Property" means: 

                                    (i)   trademark and service mark registrations and applications
(collectively, "Marks"); 

                                    (ii)   trade secrets of the Company, as defined in the U.S. Uniform Trade
Secrets Act (collectively, "Trade Secrets"); and 

                                    (iii)   domain names and URL addresses for websites on the Internet or
the World Wide Web ("Domain Names"). 

                        (b)   Intellectual Property Necessary for the Company's Business.  To the
knowledge of the Company, except as set forth in the Schedule of Exceptions, the Company
owns or has a right to use all the Intellectual Property that is necessary for the operation of the
business of the Company and its Subsidiaries as it is currently conducted, subject only to such
exceptions and exclusions as in the aggregate are not material to the business, operations or
prospects of the Company.  Except as set forth in the Schedule of Exceptions, the Company has
the right to use, without any payment to any third party in excess of U.S.$50,000 per year, all of
such Intellectual Property.

                        (c)  Trademarks. To the knowledge of the Company, 

                                    (i)   The Company and/or one or more of the Subsidiaries is the owner,
licensor or licensee of all right, title, and interest in and to each of the Marks owned or licensed
by the Company, free and clear of all Liens, and other adverse claims. 

                                    (ii)   No such Mark has been or is now involved in any opposition,
invalidation, or cancellation and no such action is threatened with respect to any of such Marks. 

                                    (iii)   There is no trademark or service mark registration of any third
party which potentially interferes with the use of such Marks. 

                                    (iv)   No such Mark is infringed or has been challenged or threatened in
any way by any other Person, nor does any such Mark used by the Company or any Subsidiary
infringe or is alleged to infringe any trademark or service mark of any third party. 

                        (d)   Trade Secrets.  To the knowledge of the Company, the Company and/or
one or more of the Subsidiaries has a right to use all Trade Secrets used in the conduct of the
business of the Company. To the knowledge of the Company, such Trade Secrets are not part of
the public knowledge or literature, and, to the knowledge of the Company, have not been used,
divulged, or appropriated for the benefit of any third party (other than the Company or any
Subsidiary or pursuant to a non-disclosure or license agreement).  To the knowledge of the

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Company, no such Trade Secret is subject to any adverse claim or has been challenged or
threatened in any way.

                        (e)   Domain Names.  To the knowledge of the Company, the Company
and/or one or more Subsidiaries is the owner of all right, title, and interest in and to, or is
licensed to use, all of the Domain Names used in the conduct of the business of the Company and
its Subsidiaries, free and clear of all Liens.  Such Domain Names are registered with Network
Solutions or such other agency or company duly authorized by relevant governmental entities to
maintain such registry, and all fees due in respect of such registration have been paid.

            2.7   Subsidiaries.  Except as set forth in the Schedule of Exceptions,
each subsidiary of the Company, meaning any entity in which the Company, directly or
indirectly, beneficially owns more than 50% of the equity interest in, or the voting control of,
such company (each, a "Subsidiary"), is a corporation validly existing and in good standing
under the laws of its jurisdiction of incorporation and has full corporate power and authority to
own, lease and operate its properties, conduct its business as and to the extent now conducted.
All of the outstanding shares of capital stock of each Subsidiary have been duly authorized and
validly issued, are fully paid and nonassessable, and are owned, beneficially and of record, by the
Company or Subsidiaries wholly owned by the Company free and clear of all liens, charges,
encumbrances, options, rights of preemption and third party rights whatsoever (collectively,
"Liens").  

            2.8   Liabilities.  Except as set forth in the Schedule of Exceptions and
except for potential Liabilities referred to in the Public Filings, neither the Company nor any
Subsidiary has any debt, liability, commitment or obligation of any kind, character or nature
whatsoever, whether known or unknown, choate or inchoate, secured or unsecured, accrued,
fixed, absolute, contingent or otherwise, and whether due or to become due ("Liability") (and, to
the knowledge of the Company, there is no basis for any present or future action against it giving
rise to any Liability) except for (i) Liabilities or obligations reflected or reserved against the
balance sheet contained in the Financial Statements or the Interim Financial Statements (as
defined herein) and (ii) current Liabilities incurred in the ordinary course of business not
exceeding U.S.$2.1 million (none of which results from, arises out of, relates to, is in the nature
of, or was caused by any breach of contract, breach of warranty, tort, infringement, or violation of
Law) since the date thereof.

            2.9   Brokers.  All negotiations relative to this Agreement and the
transactions contemplated hereby have been carried out by the Company directly without the
intervention of any person on behalf of the Company in such manner as to give rise to any valid
claim by any person against the Investors (or any of them), the Company or any Subsidiary for a
finder's fee, brokerage commission or similar payment.

            2.10   SEC Filings.  Except as disclosed in the Schedule of Exceptions,
the Public Filings (including any financial statements or schedules included therein) and each
other filing of the Company under the U.S. Securities Exchange Act of 1934, as amended (the
"1934 Act"), made since January 31, 2002 complied with the requirements of the U.S. Securities
Act of 1933, as amended (the "1933 Act"), or the 1934 Act, as the case may be, in all material
respects.   To the Company's knowledge, except as disclosed in the Schedule of Exceptions, the
Company is in

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compliance in all material respects with (i) the 1933 Act, (ii) the 1934 Act, and
(iii) all applicable rules and regulations of the U.S. Securities and Exchange Commission under
the 1933 Act and the 1934 Act.

            2.11   Financial Statements.  The restated audited consolidated financial
statements of the Company as of and for the years ended January 31, 2000, 2001 and 2002 and
the audited consolidated financial statements of NetCel360 Holdings Limited ("Holdings") as of
and for the year ended December 31, 2000 (collectively, the "Financial Statements") and the
unaudited consolidated financial statements of the Company as of and for the three months ended
April 30, 2002 and July 31, 2002 (collectively, the "Interim Financial Statements"), which have
been made available to the Investors, have been prepared in accordance with US generally
accepted accounting principles ("GAAP") applied on a basis consistent throughout the periods
indicated (except as may be indicated in the notes thereto) and, except as set forth in the
Schedule of Exceptions, present fairly in all material respects the consolidated financial condition
and consolidated operating results of the Company or Holdings, as the case may be, of the dates
and during the periods indicated therein in conformance with GAAP, subject, in the case of the
Interim Financial Statements, to normal year-end adjustments, consistent with past practices.
Except as set forth in the Financial Statements, the Interim Financial Statements, the Public
Filings, the Schedule of Exceptions or arising in the ordinary course of business since July 31,
2002, as of the date hereof none of the Company nor any Subsidiary has (A) incurred any
material liabilities of any nature (matured or unmatured, fixed or contingent) or (B) made any
material disposal of assets, suffered any loss or material damage of any assets, waived any
valuable rights, made any material change in any material contract to which it is a party or
declared or paid any dividends.

            2.12   Tax Returns, Payments and Elections.  The Company has filed all
tax returns and reports as required by law except as set forth in the Schedule of Exceptions.
These returns and reports are true and correct in all material respects.  The Company has paid all
taxes and other assessments due, except those contested by it in good faith that are listed in the
Schedule of Exceptions, if any.  The provision for taxes of the Company as shown in the
Financial Statements is adequate for taxes due or accrued as of the date thereof.  The Company
has not elected pursuant to the Internal Revenue Code of 1986, as amended (the "Code"), to be
treated as a Subchapter S corporation or a collapsible corporation pursuant to Section 1362(a) or
Section 341(f) of the Code.  

            2.13   Non-Competition Agreements.  Neither the Company nor any of its
Subsidiaries is a party to any non-competition or other agreement or subject to any duty which
prohibits or limits the ability of the Company or any Subsidiary (i) to engage in any line of
business, (ii) to compete with any person, (iii) to carry on or expand the nature or geographical
scope of the business of the Company or such Subsidiary anywhere in the world or (iv) to
disclose any confidential information in the possession of the Company or any Subsidiary (any
not otherwise generally available to the public), other than, in the case of (iv) only, any contract
for the sale or purchase of goods or services or any non-disclosure agreement entered into in
connection with the possible or actual sale or purchase of goods or services in the ordinary course
of business, investments into or by the Company or in connection with the proposed or actual
formation or operation of any joint

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venture, partnership, strategic alliance or similar arrangement
that does not meet any other of the criteria set forth in this Section 2.13.

            2.14   Offering.  Subject in part to the truth and accuracy of each
Investor's representations set forth in Section 3 of this Agreement, the offer, sale and issuance of
the Series 4-A Preferred Stock and Warrants as contemplated by this Agreement are exempt from
the registration requirements of the 1933 Act and will not result in a violation of the qualification
or registration requirements of the applicable U.S. state securities laws, and neither the Company
nor any authorized agent acting on its behalf will take any action hereafter that would cause the
loss of such exemption.

            2.15   Certain Payments.  Since their incorporation or organization,
neither the Company nor any Subsidiary has, nor has any representative of Company or any
Subsidiary, or to the knowledge of the Company or any other person associated with or acting for
or on behalf of the Company or any Subsidiary, directly or indirectly (a) made any contribution,
gift, bribe, rebate, payoff, influence payment, kickback, or other payment to any person, private
or public, regardless of form, whether in money, property, or services (i) to obtain favorable
treatment in securing business, (ii) to pay for favorable treatment for business secured, or (iii) to
obtain special concessions or for special concessions already obtained, for or in respect of the
Company or any Subsidiary or (b) established or maintained any fund or asset that has not been
recorded in the books and records of the Company or any Subsidiary.

            2.16   Government Consents.  No consent, approval, order or
authorization of, or registration, qualification, designation, declaration or filing with, any U.S.
federal, state or local governmental authority on the part of the Company is required in
connection with the consummation of the transactions contemplated by this Agreement, except
(i) the filing of the Certificate of Designation with the Secretary of State of the State of
Delaware; and (ii) such other U.S. federal or state securities filings as may be necessary, which
filings will be timely effected after the relevant Closing.

            2.17   Compliance with Laws; Permits.  The Company is not in violation
of any applicable statute, rule, regulation, order or restriction of any domestic or foreign
government or any instrumentality or agency thereof in respect of the conduct of its business or
the ownership of its properties which violation would have a Material Adverse Effect.  No
governmental orders, permissions, consents, approvals or authorizations are required to be
obtained and no registrations or declarations are required to be filed in connection with the
execution and delivery of this Agreement and the issuance of the Securities, except such as has
been duly and validly obtained or filed, or with respect to any filing that must be made after the
First Closing, as will be filed in a timely manner.  

            2.18   Absence of Stockholders Agreements.  Except as set forth in the
Schedule of Exceptions, there are no agreements in effect between the Company and any holders
or class of holders of securities of the Company relating to such securities.

            2.19   Option Plans.  Except as set forth in the Schedule of Exceptions,
the Company has no plan, arrangement, scheme or agreement for the issuance of stock or options
therefor to any of

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its employees, directors, officers or consultants other than its Employee Stock
Purchase Plan and its 2001 Stock Options/Stock Issuance Plan.

            2.20   Maintenance of Insurance.  The Company has maintained all
insurance policies required by applicable law and by contractual obligation, including, without
limitation, all insurance policies required to be kept in place pursuant to the Master Services
Agreement, dated November 16, 2001, between Agilent Technologies Singapore (Sales) Ltd. and
the Company's Cayman subsidiary, Vsource (CI) Ltd. (the "Cayman Subsidiary"), which has
subsequently been novated to the Company's Malaysian subsidiary, Vsource (Malaysia) Sdn Bhd.

            2.21   Gateway Contract.  With respect to the Support Services
Agreement, dated October 24, 2001, among the Company, Gateway Japan Inc. ("Gateway") and
the Cayman Subsidiary (the "Gateway Contract"), the Company has not materially failed to
achieve the Service Levels (as such term is defined in the Gateway Contract) from June 1, 2002
to September 30, 2002 to an extent that would give Gateway the right to terminate the Gateway
Contract pursuant to section 3.2(e)(ii) thereof.

            2.22   MSC Status.  The Company's Subsidiary Vsource (Malaysia) Sdn
Bhd has been granted and retains full Multimedia Super Corridor status.

            2.23   No Other Representations.  Notwithstanding anything to the
contrary contained in this Agreement, it is the explicit intent of each party hereto that the
Company is not making any representation or warranty whatsoever, express or implied, to the
Investors, except those representations and warranties contained in this Agreement.

            2.24   Reliance by Investors.  The Company understands that the
representations, warranties, covenants and acknowledgements set forth in this Section 2
constitute a material inducement to each Investor entering into this Agreement.

3.            Representations and Warranties of the Investors.

            Each Investor, severally but not jointly, represents and warrants to the Company as of the
date of each Closing that:

            3.1   Authorization.  Such Investor has full power and authority to enter
into this Agreement, the Stockholders Agreement and the Registration Rights Agreement, and
each such agreement constitutes its valid and legally binding obligation, enforceable against it in
accordance with its terms except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of
creditors' rights generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies, and (iii) to the extent the
indemnification and contribution provisions contained in this Agreement, the Stockholders
Agreement and the Registration Rights Agreement may be limited by applicable U.S. federal or
state securities laws.

            3.2   Purchase Entirely for Own Account.  The Securities are being
acquired for investment for such Investor's own account not as nominee or agent, and not with a
view to the resale or distribution of any part thereof, subject to the understanding that each Initial
Investor

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expects to transfer the Securities to a separate investment vehicle in the process of being
formed by the Initial Investors jointly that will be managed by an affiliate of Capital International
Asia CDPQ Inc, and that except for a transfer to such separate investment vehicle if and when
formed, such Investor has no present intention of selling, granting any participation in, or
otherwise distributing the same.

            3.3   Disclosure of Information.  Such Investor represents that it has had
an opportunity to ask questions and receive answers from the Company regarding the terms and
conditions of the offering of the Series 4-A Preferred Stock and Warrants and the business,
properties, prospects and financial condition of the Company.  The foregoing, however, does not
limit or modify the representations and warranties of the Company in Section 2 of this
Agreement or the right of the Investors to rely thereon.

            3.4   Investment Experience.  Such Investor is an investor in securities
of companies in the development stage and acknowledges that it is able to fend for itself, 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
Series 4-A Preferred Stock and Warrants.  If other than an individual, such Investor also
represents it has not been organized for the purpose of acquiring the Series 4-A Preferred Stock
and Warrants.  

            3.5   Accredited Investor; Non-U.S. Persons.  If an Investor is resident
in, or incorporated or organized under the laws of, the United States, such Investor is an
"accredited investor" within the meaning of Securities and Exchange Commission ("SEC") Rule
501 of Regulation D, as presently in effect.  If an Investor is not a resident in, or incorporated or
organized under the laws of, the United States, such Investor (i) certifies that such Investor is not
a "U.S. person" within the meaning of SEC Rule 902 of Regulation S, as presently in effect, and
that such Investor is not acquiring the Securities for the account or benefit of any such U.S.
person, (ii) agrees to resell the Securities only in accordance with the provisions of Regulation S,
pursuant to registration under the 1933 Act, or pursuant to an available exemption from
registration and agrees not to engage in hedging transactions with regard to such Securities unless
in compliance with the 1933 Act, (iii) agrees that any certificates for any Securities issued to such
Investor shall contain a legend to the effect that transfer is prohibited except in accordance with
the provisions of Regulation S, pursuant to registration under the 1933 Act or pursuant to an
available exemption from registration and that hedging transactions involving such Securities
may not be conducted unless in compliance with the 1933 Act, and (iv) agrees that the Company
is hereby required to refuse to register any transfer of any Securities issued to such Investor not
made in accordance with the provisions of Regulation S, pursuant to registration under the 1933
Act, or pursuant to an available exemption from registration.

            3.6   Restricted Securities.  Such Investor understands that the Securities
have not been and will not be registered or qualified in any state in which they are offered, and
thus the Investor will not be able to resell or otherwise transfer his, her or its Securities unless
they are registered under the 1933 Act and registered or qualified under applicable state securities
laws, or an exemption from such registration or qualification is available.

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            3.7   Limitations on Disposition.  Without in any way limiting the
representations set forth above, such Investor further agrees not to make any disposition of all or
any portion of its Securities unless and until:

                        (a)   There is then in effect a registration statement under the 1933 Act
covering such proposed disposition and such disposition is made in accordance with such
registration statement; or

                        (b)   (i) Such Investor shall have notified the Company of the proposed
disposition and shall have furnished the Company with a detailed statement of the circumstances
surrounding the proposed disposition, and (ii) if reasonably requested by the Company, such
Investor shall have furnished the Company with an opinion of counsel reasonably satisfactory to
the Company that such disposition will not require registration of such shares under the 1933
Act.  It is agreed that the Company will not require opinions of counsel for transactions made
pursuant to Rule 144 except in unusual circumstances.

            Notwithstanding the provisions of paragraphs (a) and (b) above, no such registration
statement or opinion of counsel shall be necessary for a transfer by an Investor that is a partnership
or limited liability company to a partner of such partnership or a member of such limited liability
company or a retired partner of such partnership who retires after the date hereof or a retired member
of such limited liability company who retires after the date hereof, or to the estate of any such
partner, retired partner, member or retired member or the transfer by gift, will or intestate succession
by any partner or member to his or her spouse or to the siblings, lineal descendants or ancestors of
such partner or member or his or her spouse, if the transferee agrees in writing to be subject to the
terms hereof to the same extent as if he or she were an original Investor hereunder.

            3.8   Legends.  It is understood that the certificates evidencing the
Securities may bear the following legend, in addition to any other legends that may be set forth in
the Stockholders Agreement:

"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."

            3.9   Reliance by Company.  Such Investor understands that the representations,
warranties, covenants and acknowledgements set forth in this Section 3 constitute a material
inducement to the Company entering into this Agreement.

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            3.10   No Reliance on Others.  Each Investor acknowledges that it is not relying upon
any person, firm or corporation, other than the Company and its officers and directors, in making
its investment or decision to invest in the Company.  

4.            Conditions to Investors' Obligations at Each Closing.

            The obligations of each Investor under Section 1.2(a) of this Agreement with respect to
each Closing at which such Investor purchases any shares of Series 4-A Preferred Stock and
Warrants hereunder are subject to the fulfillment on or before such Closing of each of the
following conditions, the waiver of which shall not be effective against any Investor who does
not consent thereto:

            4.1   Representations and Warranties.  The representations and warranties of the
Company contained in Section 2 shall be true on and as of such Closing with the same effect as
though such representations and warranties had been made on and as of the date of such Closing.

            4.2   Performance.  The Company shall have performed and complied with all
agreements, obligations and conditions contained in this Agreement that are required to be
performed or complied with by it on or before such Closing, and delivery of any document,
instrument or certificate by any officer of the Company required or furnished pursuant to this
Section 4 shall have been duly authorized by the Company.

            4.3   Compliance Certificate.  The Chief Financial Officer of the Company shall deliver
to each Investor at such Closing a certificate stating that the conditions specified in Sections 4.1
and 4.2 have been fulfilled.

            4.4   Secretary's Certificate.  The Company shall deliver to each Investor at such
Closing a certificate of the Secretary of the Company with respect to the Certificate of
Designation, the Company's Bylaws and the resolutions of the Company's Board of Directors
relating to the transactions contemplated hereby.

            4.5   Certificate of Designation.  The Certificate of Designation shall have been duly
filed with and accepted for filing by the Secretary of State of the State of Delaware.

            4.6   Permits, Qualifications and Consents.  All permits, authorizations, approvals,
consents or permits, if any, of any governmental authority or regulatory body of the United States
or of any state that are required in connection with the lawful issuance and sale of the securities
pursuant to this Agreement at such Closing shall be duly obtained and effective as of such
Closing.

            4.7   Proceedings and Documents.  All corporate and other proceedings in connection
with the transactions contemplated at such Closing shall be reasonably satisfactory in form and
substance to the Investors participating in such Closing and their special counsel, and such
Investors and their special counsel shall have received all such counterpart original and certified
or other copies of such documents as they may reasonably request.

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            4.8   Opinion of Company Counsel.  Each Investor shall have received from Morrison
& Foerster, counsel for the Company, an opinion, dated as of such Closing, in substantially the
form attached hereto as Exhibit C, with such changes therein as may be appropriate for such
opinion to: (i) refer accurately to the securities being purchased by it at such Closing, (ii) reflect
any changes in the capitalization of the Company, (iii) reflect any changes in the list of attorneys
named therein, (iv) reflect any amendments to the agreements and other documents referenced
therein and (v) properly reference the correct Closing for which the opinion is being delivered.

            4.9   Stockholders Agreement.  The Company, each Investor, BAPEF Investments XII
Ltd. ("BAPEF"), Mercantile Capital Partners I, L.P. ("MCP"), Asia Internet Investment Group I,
LLC ("AIIG"), Phillip Kelly, John Cantillon and Dennis Smith (Messrs. Kelly, Cantillon and
Smith being referred to herein as the "Founders") shall have entered into the Stockholders
Agreement in the form attached hereto as Exhibit D (the "Stockholders Agreement") on or prior
to the date of the First Closing, and such agreement shall be in full force and effect.

            4.10   Convertible Securities Exchange Agreement.  The Company, BAPEF, MCP, AIIG
and the Founders shall have entered into the Convertible Securities Exchange Agreement,
substantially in the form attached hereto as Exhibit E (the "Convertible Securities Exchange
Agreement") on or prior to the date of the First Closing, and such agreement shall be in full force
and effect.

            4.11   Amended Bylaws.  The Board of Directors shall have adopted amended Bylaws in
the form attached hereto as Exhibit F and such Bylaws shall be in full force and effect. 

            4.12   Board of Directors.  The size of the Board of Directors shall be fixed at seven
persons.  As of the First Closing, the directors of the Company shall be Phillip Kelly, Dennis
Smith, Bruno Seghin, Jean Salata, I. Steven Edelson, Robert Schwartz and Ramin Kamfar, as
provided in the Stockholders Agreement.

            4.13   Key Person Life Insurance.  The Company shall have obtained, at its expense,
"key person" life insurance insuring the lives of each of the Founders and insurance policies
covering the liabilities of its directors and officers, and such insurance policies shall be in full
force and effect.

            4.14   Exchange of Securities.  As of the date of the First Closing, all of the Series 2-A
Preferred Stock, Series 3-A Preferred Stock, Series A Convertible Notes and Series B-1
Exchangeable Notes (collectively, the "Convertible Securities") and Series B Warrants and
Series B-1 Warrants (the "Series B Warrants") of the Company held by BAPEF, MCP, AIIG and
the Founders shall have been exchanged for shares of Series 4-A Preferred Stock (or converted
into shares of Series 3-A Preferred Stock which is then immediately exchanged for shares of
Series 4-A Preferred Stock) in accordance with the provisions of the Convertible Securities
Exchange Agreement (the "Exchange"). 

            4.15   Outstanding Convertible Securities and Series B Warrants.  After giving effect to
the First Closing, the Second Closing and the Exchange, the total number of shares of Common
Stock which are issuable upon the conversion or exercise of all issued and outstanding

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Convertible Securities and Series B Warrants shall not exceed 5% of the total issued and
outstanding share capital of the Company, on a fully diluted basis.  Further, after giving effect to
the First Closing, the Second Closing and the Exchange, there shall be no shareholder of the
Company (other than the Investors, BAPEF, MCP, AIIG, the Founders, any affiliates of the
foregoing parties, any stockholder holding in street name which has not identified itself to the
Company in accordance with Section 13(d) of the 1934 Act and any other stockholder which
acquires more than 1% of the total issued and outstanding share capital of the Company, on a
fully diluted basis, through transactions on any stock exchange or automated quotation system on
which the Company's shares are traded and which has not informed the Company of such
transactions) which beneficially owns more than 1% of the total issued and outstanding share
capital of the Company, on a fully diluted basis.  For purposes of this Agreement, "on a fully
diluted basis" means taking into account the issued and outstanding Common Stock, plus (i) such
number of shares of Common Stock as may be purchased upon the exercise of outstanding
warrants and of options granted or authorized under any Company stock option, stock issuance or
stock purchase plan and (ii) such number of shares of Common Stock issuable upon the
conversion of all outstanding convertible, exchangeable or exercisable securities at a conversion
price which shall take into account (if the computation is to be made after giving effect to the
First Closing) any adjustment resulting from the issuance of the Series 4-A Preferred Stock to the
Investors.  

            4.16   Registration Rights Agreement.  The Company, the Founders, MCP, AIIG and
BAPEF shall have entered into the Registration Rights Agreement in the form attached hereto as
Exhibit G (the "Registration Rights Agreement") on or prior to the date of the First Closing, and
such agreement shall be in full force and effect.

            4.17   Schedule of Exceptions.  Any new information provided through amendments or
updates to the Schedule of Exceptions made as contemplated by the introductory paragraph of
Section 2 at or prior to the date of such Closing shall not in the judgment of such Investor
materially adversely affect the financial conditions, properties, business, operations, assets,
results of operations or prospects of the Company and its Subsidiaries, taken as a whole.

5.            Conditions to Investors' Obligations at the Second Closing.

            The obligations of each Investor under Section 1.2(c) of this Agreement with respect to
the Second Closing are subject to the fulfillment on or before the Second Closing of each of the
conditions specified in Section 4 above and the condition specified below, the waiver of which
shall not be effective against any Investor who does not consent thereto:

            5.1   Achievement of Second Closing Milestone.  The following shall have occurred:

                        (a)   the Company shall have executed up to three contracts with bona fide third
party clients, or expanded the scope of contracts with existing clients, which contracts shall
generate revenues (or in the case of expanded existing contracts shall generate additional
revenues) of not less than U.S.$10 million in the aggregate; provided, that if there is any
disagreement as to whether the foregoing milestone has been achieved, the Board of Directors

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shall determine the matter upon the vote of a simple majority of the members of the Board at a
duly called meeting at which a quorum is present (the "Second Closing Milestone"); and

                        (b)   each Initial Investor shall have received within sixty (60) days of the date
of the last of such contracts, which, together with the other contracts referenced in (a) above,
generates aggregate revenues of not less than U.S.$10 million, written notice from the Company
confirming that the Second Closing Milestone has been achieved and specifying the date for the
Second Closing in accordance with Section 1.2(c) (the "Second Closing Milestone Notice").

6.            Conditions to the Company's Obligations at Each Closing.

            The obligations of the Company to each Investor with respect to each Closing at which
such Investor purchases any shares of Series 4-A Preferred Stock and Warrants hereunder are
subject to the fulfillment on or before the Closing of each of the following conditions by that
Investor:

            6.1   Representations and Warranties.  The representations and warranties of the
Investor contained in Section 3 shall be true on and as of the Closing with the same effect as
though such representations and warranties had been made on and as of the date of such Closing.

            6.2   Payment of Purchase Price.  The Investor shall have delivered the purchase price
specified in Section 1.1 for the number of shares of Series A-4 Preferred Stock and Warrants set
forth opposite such Investor's name on Schedule 1 hereto in relation to the relevant Closing.

7.            Miscellaneous.

            7.1   Survival of Representations, Warranties and Covenants.  The warranties,
representations and covenants of the Company and Investors contained in or made pursuant to
this Agreement shall survive the execution and delivery of this Agreement and each Closing and
shall remain in full force and effect for a period of two years following the applicable Closing.  

            7.2   Successors and Assigns.  Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties (including transferees of any Securities).  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.

            7.3   Use of Proceeds.  The Company shall cause the entire proceeds from the issue and
sale of the Series 4-A Preferred Stock and Warrants to be used for reasonable expenses incurred
in connection with the transactions contemplated in this Agreement, including, without
limitation, the Exchange referenced in Section 4.14 above and the Offer and Prepayment
referenced in the Stockholders Agreement, and for working capital to facilitate its expansion in
the outsourcing business in Asia and to strengthen its balance sheet so as to assist the Company
in its efforts to attract new customers.

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            7.4   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.

            7.5   Acknowledgement.  Each party hereto acknowledges that: (a) it has read this
Agreement; (b) it has been represented in the preparation, negotiation and execution of this
Agreement by legal counsel of its own choice or has voluntarily declined to seek such counsel;

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and (c) it understands the terms and consequences of this Agreement and is fully aware of the
legal and binding effect of this Agreement.  

            7.6   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.

            7.7   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.

            7.8   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.  

            7.9   Finder's Fee.  Each party represents that it neither is nor will be obligated for any
finders' fee or commission in connection with this transaction.  Each Investor agrees to
indemnify and to hold harmless the Company from any liability for any commission or
compensation in the nature of a finders' fee (and the costs and expenses of defending against
such liability or asserted liability) for which such Investor or any of its officers, partners,
employees or representatives is responsible.  The Company agrees to indemnify and hold
harmless each Investor from any liability for any commission or compensation in the nature of a
finder's fee (and the costs and expenses of defending against such liability or asserted liability)
for which the Company or any of its officers, employees or representatives is responsible.

            7.10   Expenses.  Irrespective of whether the First Closing is effected, the Company shall
pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery and
performance of this Agreement.  If the First Closing is effected, the Company shall pay for all
expenses, including legal expenses, investment audit expenses and due diligence-related
expenses incurred by the Initial Investors, up to a maximum amount of U.S.$100,000 in the
aggregate.  

            7.11   Amendments and Waivers.  Subject to the provisions of Section 4, 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

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written consent of the Company and the holders of a majority of the Series 4-A
Preferred Stock to be purchased hereunder.  Any amendment or waiver effected in accordance
with this paragraph shall be binding upon each holder of any securities purchased under this
Agreement at the time outstanding (including securities into which such securities are
convertible), each future holder of all such securities, and the Company.

            7.12   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.

            7.13   Indemnification.

                        (a)   To the extent permitted by law, the Company will indemnify and hold
harmless each Investor against any losses, claims, damages or liabilities (joint or several) to
which they may become subject, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon any material breach of or inaccuracy in any
representation or warranty by the Company in Section 2 of this Agreement as of the date such
representation or warranty was made (a "Violation"); provided, however, that the indemnity
agreement contained in this Section 7.13(a) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected without the consent of
the Company.

                        (b)   Promptly after receipt by an indemnified party under this Section 7.13 of
actual knowledge of the commencement of any action (including any governmental action), such
indemnified party will, if a claim in respect thereof is to be made against the Company, deliver to
the Company a written notice of the commencement thereof (the "Indemnification Notice") and
the Company shall have the right to participate in, and, to the extent the Company so desires, to
assume the defense thereof with counsel mutually satisfactory to the parties; provided, however,
that an indemnified party (together with all other indemnified parties that may be represented
without conflict by one counsel) shall have the right to retain one separate counsel, with the fees
and expenses to be paid by the Company, if representation of such indemnified party by the
counsel retained by the Company would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such counsel in such
proceeding.  In addition to the restrictions contained in Section 7.13(d), the failure to deliver an
Indemnification Notice to the Company within a reasonable time of the commencement of any
such action, if prejudicial to its ability to defend such action, shall relieve the Company of any
liability to the indemnified party under this Section 7.13 to the extent of such prejudice.

                        (c)   Notwithstanding the foregoing, in no event shall any indemnity payable by
the Company under this Section 7.13 exceed the aggregate purchase price for the Series 4-A
Preferred Stock and Warrants acquired by the Investor being indemnified pursuant to this
Agreement.  Further, the Company shall have no obligations under this Section 7.13 to indemnify
any Investor unless and until the actual aggregate losses incurred by all Investors arising out of or
based upon one or more Violations as provided for in Section 7.13(a), from the date of the First
Closing on a cumulative basis, are at least U.S.$100,000.

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                        (d)   The Company shall not be required to indemnify any Investor under this
Section 7.13 in respect of any Violation as to which the Company has not received, within six
months of the First Closing, an Indemnification Notice, except with respect to Violations arising
in connection with the representations and warranties contained in Sections 2.1, 2.2, 2.7 or 2.12
for which the Company's indemnification obligations shall continue until the applicable statute of
limitations has run in respect thereof.

            7.14   Reverse Stock Split.   

                        (a)   The Company hereby undertakes and agrees to effect a reverse stock split
(the "Reverse Stock Split") of its issued and outstanding Common Stock at an exchange ratio of
twenty to one within thirty (30) days of the First Closing.  The Company shall promptly provide
each Initial Investor with written notice of the completion of the Reverse Stock Split by the filing
of a Certificate of Amendment of the Company's Certificate of Incorporation with the Secretary
of State of the State of Delaware to effect the Reverse Stock Split (the "Reverse Stock Split
Notice").

                        (b)   The Initial Investors shall be entitled to hold an aggregate of U.S.$250,000
from the aggregate purchase price payable at the First Closing (the "Retained First Closing
Purchase Price") until their receipt of the Reverse Stock Split Notice, at which time the Initial
Investors shall promptly cause the Retained First Closing Purchase Price to be paid to the
Company by certified check, wire transfer or any combination thereof.  If the Initial Investors
have not received a Reverse Stock Split Notice within 120 days after the First Closing, they shall
be entitled to retain the Retained First Closing Purchase Price, regardless of whether the Reverse
Stock Split is effected thereafter, as damages to compensate the Initial Investors for the
Company's failure to put into effect the Reverse Stock Split within 120 days of the First Closing.

            7.15   Further Assurances.  Each Investor and the Company shall 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.

            7.16   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 SERIES 4-A CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT

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	INVESTOR:

CAPITAL INTERNATIONAL ASIA CDPQ INC.

	
	By:	/S/ JEAN LAMOTHE
Name: Jean Lamothe
Title: ________________________________			By:	/S/ HARASHAWARDHAN 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		

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	INVESTOR:

QUILVEST ASIAN EQUITY LTD.

	
	By:	/S/ BRUNO SEGHIN
Name: Bruno Seghin
Title: ______________________________			By:	

	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 SERIES 4-A CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT

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EXHIBIT A

CERTIFICATE OF DESIGNATION 

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EXHIBIT B

FORM OF WARRANT 

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EXHIBIT C

OPINION OF COUNSEL 

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EXHIBIT D

STOCKHOLDERS AGREEMENT 

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EXHIBIT E

CONVERTIBLE SECURITIES EXCHANGE AGREEMENT 

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EXHIBIT F

AMENDED BYLAWS 

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EXHIBIT G

REGISTRATION RIGHTS AGREEMENTEXHIBIT 4.2

VSOURCE, INC.

STOCKHOLDERS AGREEMENT

Dated as of October 25, 2002

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TABLE OF CONTENTS

				Page
	1.	Definitions	1
	2.	Right of First Refusal	4
	3.	Right of Co-Sale	5
	4.	Exceptions to Rights of First Refusal and Co-Sale; Transfer of Rights	6
	5.	Prohibited Transfers	7
	6.	Drag Along Rights	8
		6.1	Sale Proposal	8
		6.2	Compelled Sale Notice	9
		6.3	Conditions to Compelled Sale	9
	7.	Changes in Stock	9
	8.	Voting	10
		8.1	Agreement to Vote	10
		8.2	Board Size; Meetings	10
		8.3	Election of Directors	10
		8.4	No Liability for Election of Recommended Directors	12
		8.5	Grant of Proxy; Restrictions in Other Agreements	12
		8.6	Specific Enforcement	12
		8.7	Observer Rights	12
		8.8	Restrictions on Certain Corporate Actions	13
		8.9	Restrictions on Certain Board Actions	14
		8.10	Manner of Voting	15
	9.	Departing Founder 	15
		9.1	Escrow Account	15
		9.2	Rights of Departing Founder	17
		9.3	Article V Put Option	17
	10.	Section 10 Put Option 	19
	11.	Access to Information 	20
		11.1	Delivery of Financial Statements	20
		11.2	Inspection	20
	12.	Other Covenants of the Company	21
		12.1	General	21
		12.2	Key Person Life Insurance and Director Liability Insurance	22
		12.3	Special Covenants with Respect to SBICs	22
		12.4	Post-Closing Percentages	22
	13.	Legends on Stock, Certificates	24
	14.	Amendments and Waivers	25

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	15.	Successors and Assigns	25
	16.	Stock Splits, Stock Dividends, etc.	26
	17.	Additional Seires 4-A Investors	26
	18.	Enforceability; Severability	26
	19.	Termination	26
	20.	Further Assurances	27
	21.	Entire Agreement	27
	22.	Delays or Omissions	28
	23.	Counterparts	28
	24.	Captions and Headings	28
	25.	Notices	28
	26.	Governing Law; Venue	28
	27.	Expenses	29
	28.	Confidentiality	30
		28.1	Confidentiality	30
		28.2	Exceptions	30

SCHEDULES

	

SCHEDULE A
SCHEDULE B
	Schedule of Investors
Schedule of Founders
		

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VSOURCE, INC.

STOCKHOLDERS AGREEMENT

THIS STOCKHOLDERS AGREEMENT (this "Agreement") is entered into as of
October 25, 2002 by and among Vsource, Inc., a Delaware corporation (the "Company"), Phillip
Kelly, John Cantillon and Dennis Smith (the "Founders") and the investors listed on Schedule A
(each an "Investor" and collectively, together with the Additional Series 4-A Investors (as
defined below) the "Investors").

The Founders are the owners of that number of shares of Series 4-A Preferred Stock (as
defined below) of the Company set forth opposite each such Founder's name on Schedule B and
common stock, par value $0.01 per share of the Company (the "Common Stock"), and the
Investors are the owners and/or the purchasers of that number of shares of Series 4-A Preferred
Stock as set forth in detail on Schedule  A.

Certain of the Investors and the Company are parties to that certain Series 4-A
Convertible Preferred Stock Purchase Agreement, dated as of October 23, 2002 (the "Series 4-A
Purchase Agreement") relating to the issue and sale of shares of Series 4-A Convertible
Preferred Stock of the Company, par value U.S.$0.01 per share (the "Series 4-A Preferred
Stock" or "Preferred Stock") and relating to the issue of warrants to purchase shares of Common
Stock.  The Company may sell and issue additional shares of Series 4-A Preferred Stock (the
"Additional Series 4-A Shares") to certain Investors and other investors (the "Additional
Series 4-A Investors") pursuant to the Second Closing and Additional Closings under, and as
defined in, the Series 4-A Purchase Agreement, provided that each  Additional Series 4-A
Investor executes a counterpart of this Agreement, if not already a party to this Agreement, upon
which such Additional Series 4-A Investor will be deemed an "Investor" hereunder.

The obligations of the Company and certain of the Investors under the Series 4-A
Purchase Agreement are conditioned, among other things, upon the execution and delivery of this
Agreement by the Investors, the Founders 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.     Definitions

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

         (a)         "Charter" means the Certificate of Incorporation of the Company, including any
Certificates of Designation filed with the Secretary of State of Delaware with respect thereto.  

         (b)         "Holder" means an Investor or Founder, or any party that becomes a "Holder"
subsequent to the date hereof pursuant to the terms of this Agreement.

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

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

                           (A)         the purchase consideration paid by the Share Purchasers (as defined
below) to the Company for the Shares (as defined below) purchased at the First Closing (as defined
in the Series 4-A Purchase Agreement);

                           (B)         the purchase consideration paid by the Share Purchasers to the
Company, if any, for the Shares purchased at the Second Closing (as defined in 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 the Warrants (as defined in the Series
4-A Purchase Agreement) (the "Warrant Shares"). 

                  (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: (i) the Shares and Warrant Shares; and (ii) any
securities received by the Share Purchasers in respect of the Shares or Warrant Shares without
additional consideration paid by the Initial Investor; and

                           (B)         the value of Shares, Warrant Shares and any securities received by the
Share Purchasers in respect of the Shares 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 Shares 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 in such Qualifying Offering to the public per share of Common Stock times the number
of Warrant Shares and the shares of Common Stock issued or issuable upon conversion of Shares);
(2) the aggregate purchase price of the Shares, Warrant Shares and/or such securities on the Liquidity
Date in the case of a Qualifying Sale (as defined below); 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 the date of
the First Closing and the last date will be the Liquidity Date. 

         (d)         "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 of 1933 of the United States of America, as amended (the "1933 Act"), and the
declaration or ordering of effectiveness of such registration statement or document by the U.S.
Securities and Exchange Commission (the "SEC") 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, of any registration, qualification or completion of any procedure in compliance
with the applicable securities

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 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 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 under the 1933
Act, 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.  

         (e)         "Permitted Transferee" means any Affiliate (as defined below) 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.  For purposes of this Agreement, an "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.  For purposes of this Agreement, Capital International Asia
CDPQ, Inc. (the "CDP Investor"), CDP Asia Private Equity Fund, L.P. I, and Quilvest Asian
Equity Ltd. shall be deemed to be Affiliates of one another, and Mercantile Capital Partners I,
L.P. ("Mercantile") and Asia Internet Investment Group I, LLC shall be deemed to be Affiliates
of one another.  Upon the winding-up, liquidation or dissolution of a Holder that is a pooled
investment vehicle, whether organized as a limited partnership, general partnership, corporation
or otherwise, such Holder's Permitted Transferees shall be deemed to include each of its general
partners, limited partners, investment managers and shareholders as the case may be.

         (f)         "Pro Rata Share" means at any time, the ratio that (i) the sum of the
number of shares of Common Stock then held by a Holder which were issued upon conversion of
Preferred Stock plus the number of shares of Common Stock issuable upon conversion of
Preferred Stock then held by such Holder bears to (ii) the sum of the total number of shares of
Common Stock then held by all Holders which were issued upon conversion of Preferred Stock,
plus the number of shares of Common Stock issuable upon conversion of all outstanding
Preferred Stock then held by all Holders.

         (g)         "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
1933 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 1933 Act) or, in connection with a Qualifying Offering on an

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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 persons who on October 25, 2002 purchased shares of
Series 4-A 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).

         (h)         "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.

         (i)         "Recapitalization" means a stock split, subdivision, stock dividend,
combination, recapitalization and the like.  

         (j)         "Shares" means, subject to Section 7, all shares of the Series 4-A
Preferred Stock and Common Stock issuable or issued upon conversion of the Series 4-A
Preferred Stock held by each Holder as of the date such Holder becomes a party to this
Agreement or with respect to a Holder who becomes a party to this Agreement and subsequently
purchases Additional 

Series 4-A Shares, as of the date of purchase of such Additional Series 4-A Shares.

2.      Right of First Refusal

         (a)         Subject to Section 4,  in the event that a Holder (the "Proposed Transferor")
proposes to sell or otherwise transfer any Shares prior to the Liquidity Date and pursuant to a
bona fide offer from a third party (the "Proposed Transferee"), such Holder must first give each
other Holder written notice (the "Holders' Notice") of the number of Shares to be transferred, the
price, terms and conditions of the proposed sale, including the identity of the Proposed
Transferee, and a copy of any written proposal, term sheet, letter of intent or other agreement
relating to the proposed sale. 

         (b)         Each such other Holder will have thirty (30) days from the date of the
Holders' Notice to agree to purchase all of such Holder's Pro Rata Share of such Shares, for the
price and upon the terms and conditions specified in the Holders' Notice, by giving written
notice to such Proposed Transferor stating therein the number of such Shares to be purchased.  If
any Holder fails to agree to purchase its full Pro Rata Share within such thirty (30) day period,
the Proposed Transferor will give the Holders who did so agree (the "Electing Holders")

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\

notice
(a "Subsequent Holders' Notice") of the number of Shares which were not subscribed for.  The
Electing Holders will have fifteen (15) days from the date of a Subsequent Holders' Notice to
agree to purchase their respective Pro Rata Share of all of the Shares not subscribed for by such
other Holders.  The Proposed Transferor will repeat this process by providing further Subsequent
Holders' Notices to the Electing Holders at the end of each such fifteen day period until all the
Shares have been subscribed for or no Holders desire to purchase any remaining Shares.  For
purposes of any election under this Section 2 pursuant to a Subsequent Holder's Notice, Shares
held by Holders other than Electing Holders will be excluded for the purpose of calculating an
Electing Holder's Pro Rata Share.  In the event any Holder or Holders timely elect to acquire all
of the Shares proposed to be sold by the Proposed Transferor as specified in the Holders' Notice,
settlement thereof will be made within thirty (30) days after the date on which the last such
Holder notifies the Proposed Transferor of such election.  To the extent that the terms of payment
set forth in the Holders' Notice consist of property other than cash against delivery, the Electing
Holders must pay for such Shares the cash equivalent of the fair market value of such property.  

         (c)         Subject to the provisions of Section 3, in the event the Holders fail to
exercise this right of first refusal to purchase all but not less than all of the Shares stated in the
Holders' Notice within the thirty (30) day period plus the additional periods specified above
(collectively, the "Notice Period"), the Proposed Transferor will have ninety (90) days thereafter
to sell all but not less than all of the Shares stated in the Holders' Notice at the price and upon
terms and conditions no more favorable to the purchasers of such Shares than specified in the
Holders' Notice, provided that each such Proposed Transferee executes and becomes a Holder
under this Agreement and agrees to hold the Shares subject to all the terms and conditions of this
Agreement.  In the event the Proposed Transferor has not sold all the Shares within such
ninety (90) day period, the Proposed Transferor may not thereafter sell any Shares without first
offering such Shares to the Holders in the manner provided in this Section 2.

         (d)         The Proposed Transferor may, in its sole discretion, agree to accept an
offer from a Holder or Holders pursuant to Section 2(b) to purchase only a portion of the Shares
specified in the Holders' Notice, for the price and upon the terms and conditions specified in the
Holders' Notice, and sell the remaining unpurchased Shares to the Proposed Transferee at the
price and upon terms and conditions no more favorable to the Proposed Transferee of such
Shares than specified in the Holders' Notice.  

3.      Right of Co-Sale

         (a)         Subject to Section 4, and notwithstanding anything to the contrary set forth in
Section 2(c), no Proposed Transferor may sell any Shares specified in a Holders' Notice pursuant
to Section 2(c) until each other Holder has been given the opportunity to sell to the Proposed
Transferee, upon the same terms and conditions offered to the Proposed Transferor, up to such
Holder's Pro Rata Share of the Shares ultimately sold, provided, however, that Shares held by
Holders other than those Holders electing to sell to the Proposed Transferee will be excluded for
the purpose of calculating such Holder's Pro Rata Share.  Such Holder proposing to sell or
otherwise transfer any Shares shall first notify each Holder in writing at least thirty (30) days
prior to the proposed sale or transfer of the number of Shares to be sold or transferred and the
price, terms and conditions of the proposed sale or transfer.

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         (b)         Holders who fail to provide an irrevocable notice to the Proposed
Transferor of such Holder's agreement to sell such Holder's Pro Rata Share of the Shares
proposed to be sold within fifteen (15) days after the date of notice described in Section 3(a)
hereof will be deemed to have waived their rights under this Section 3.  Any sale made pursuant
to this Section 3 shall be consummated within ninety (90) days of the end of the Notice Period.

         (c)         Each Holder will effect its participation in the sale by promptly delivering
to the Proposed Transferor for delivery to the Proposed Transferee, before the consummation of
the sale of the Shares, one or more certificates, properly endorsed for transfer, which represent:

                  (i)         the number of shares of Common Stock which such Holder elects to sell;
or

                  (ii)         that number of shares of Preferred Stock that is at such time convertible
into the number of shares of Common Stock that such Holder elects to sell; provided, however,
that if the Proposed Transferee objects to the delivery of Preferred Stock in lieu of Common
Stock, such Holder will convert such Preferred Stock into Common Stock and deliver Common
Stock as provided above.  The Company agrees to make any such conversion concurrent with the
actual sale of such shares to the Proposed Transferee.

         (d)         The stock certificate or certificates that the Holder delivers to the Proposed
Transferor pursuant to Section 3(c) will be transferred to the Proposed Transferee in
consummation of the sale of the Shares pursuant to the terms and conditions specified in the
Holders' Notice, and the Proposed Transferor will concurrently therewith remit or procure that
the Proposed Transferee remits to such Holder that portion of the sale proceeds to which such
Holder is entitled by reason of its participation in such sale.  To the extent that any Proposed
Transferee prohibits such assignment or otherwise refuses to purchase shares or other securities
from a Holder exercising its rights of co-sale hereunder, the Proposed Transferor will not sell to
such Proposed Transferee any Shares unless and until, simultaneously with such sale, the
Proposed Transferor purchases such Shares or other securities from such Holder.

4.      Exceptions to Rights of First Refusal and Co-Sale; Transfer of Rights

         (a)         The restrictions set forth in Sections 2 and 3 will not apply in the following cases:

                  (i)         each Proposed Transferor may sell or transfer any Shares to the Company
pursuant to a repurchase right or right of first refusal held by the Company;

                  (ii)         each Proposed Transferor may sell or transfer any Shares to a Permitted
Transferee provided that such Permitted Transferee agrees in writing to be bound by the terms of
this Agreement applicable to the Proposed Transferor and such Permitted Transferee makes with
respect to itself the same representations and warranties to the Company as those set forth in
Section 3 of the Series 4-A Purchase Agreement, provided, however, that the representation
contained in Section 3.2 of the Series 4-A Purchase Agreement shall be revised to remove the
reference to a contemplated transfer of shares to a separate investment vehicle;

                  (iii)         the purchase of Escrow Securities by the Company and/or an Investor
under Section 9 hereof; and

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                  (iv)         any resale of Shares as part of an underwriting in connection with a
Qualifying Offering.

         (b)         The rights of a Holder under Section 2 and Section 3 are not assignable, except to
a Permitted Transferee.  

         (c)         The restrictions set forth in Sections 2 and 3 shall only apply to seventy-five percent (75%) of the total Shares (the "Restricted Shares", and all Shares that are not
Restricted Shares shall be "Unrestricted Shares"), calculated on the basis of the number of
shares of Common Stock constituting the Shares on a fully diluted basis, held by each Holder and
its Permitted Transferees, including Affiliates that are parties to this Agreement, in the aggregate,
as of the date that such Holder becomes a party to this Agreement, or, with respect to a Holder
who becomes a party to this Agreement and subsequently purchases Additional Series 4-A
Shares, as of the date of purchase of such Additional Series 4-A Shares, provided that at the time
of a sale or transfer of any Shares by a Holder, the Holder selling or transferring Shares shall
specify by notice to the other Holders whether such Shares shall be counted against the number
of Unrestricted Shares or the number of Restricted Shares held by such Holder.

5.      Prohibited Transfers

         (a)         No Holder may sell, assign, transfer, give, pledge, hypothecate, mortgage,
encumber or dispose of all or any of his Restricted Shares except to a Permitted Transferee or
otherwise as expressly permitted by this Agreement.

         (b)         In the event any Proposed Transferor sells any Restricted Shares in
contravention of the co-sale rights of the Holders under this Agreement (a "Prohibited
Transfer"), the Holders, in addition to such other remedies as may be available at law, in equity,
under the Company's Charter or hereunder, will have the option provided below, and such
Proposed Transferor will be bound by the applicable provisions of such option.

         (c)         In the event of a Prohibited Transfer, each Holder will have the right to
sell to the Proposed Transferor, and the Proposed Transferor will be obligated to purchase from
such Holder, the number of shares of Common Stock equal to the number of shares such Holder
would have been entitled to transfer to the purchaser in the Prohibited Transfer under Section 3
had the Prohibited Transfer been effected pursuant to and in compliance with the terms hereof.
Such sale will be made on the following terms and conditions:

                  (i)         the price per share at which the shares are to be sold to the Proposed
Transferor will be equal to the price per share paid by the purchaser to the Proposed Transferor in
the Prohibited Transfer;

                  (ii)         within ninety (90) days after the later of the dates on which a Holder (A)
receives notice of the Prohibited Transfer or (B) otherwise becomes aware of the Prohibited
Transfer, such Holder will notify the other Holders, if exercising the put option created hereby,
and deliver to the Proposed Transferor the certificate or certificates representing that number of
shares of Common Stock to be sold, or, at the Holder's option, a certificate or certificates
representing that number of shares of Preferred Stock that is at such time convertible into the
number of shares of Common Stock to be sold, each certificate to be properly endorsed for
transfer; and

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                  (iii)         the Proposed Transferor will, upon receipt of the certificate or certificates
for the shares to be sold by a Holder pursuant to this Section 5(c)(iii), pay the aggregate purchase
price therefor, as specified in Section 5(c)(i), in cash or by other means acceptable to the Holder.
The Proposed Transferor must also reimburse the Holder for any and all reasonable fees and
expenses, including reasonable legal fees and expenses, incurred pursuant to the exercise of such
Holder's rights hereunder.

         (d)         The Company will not, without the approval of Holders holding a majority of the
number of outstanding Shares, calculated on the basis of the number of shares of Common Stock
constituting the Shares on  a fully diluted basis then held by all Holders (other than the Proposed
Transferor):  (i) permit any transfer on its books of any Shares which have been sold in violation
of any of the provisions set forth in this Agreement or (ii) treat as the owner of such Shares, or
accord the right to vote as an owner or pay dividends to any transferee to whom such Shares have
been sold in violation of any of the provisions set forth in this Agreement.

         (e)         No Holder may transfer any Restricted Shares until the earlier of March
31, 2006 and the Liquidity Date, other than to a Permitted Transferee or in accordance with
Section 2 and Section 3 of this Agreement or unless such transfer is pursuant to a Qualifying
Sale.

         (f)         At no time shall a Holder transfer any Shares to a direct competitor of the
Company, as reasonably determined by the Company's Board of Directors, except pursuant to a
Qualifying Sale.

6.      Drag Along Rights

         6.1    Sale Proposal

                  If, at any time prior to the Liquidity Date, a proposal for a sale or other acquisition
(whether by merger, consolidation, sale of assets or otherwise) of all or at least ninety percent
(90%) of the Shares, calculated on the basis of the number of shares of Common Stock
constituting the Shares on a fully diluted basis, then held by all Holders to any third party for a
specified price payable in cash, securities or any other consideration and on specified terms and
conditions in connection with a Qualifying Sale (a "Sale Proposal"), has been approved by (x)
the Board of Directors of the Company, (y) the holders of a sufficient amount of the outstanding
share capital of the Company 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) required to approve
a sale of all or substantially all of the Company's assets under the Company's Charter and the
General Corporation Law of the State of Delaware and (z) the holders of a sufficient amount of
Series 4-A Preferred Stock required to approve a sale of all or substantially all of the Company's
assets under the Charter, then the parties hereto who so approved the Sale Proposal (the
"Approving Stockholders") may require all of the parties hereto who are not Approving
Stockholders ("Remaining Stockholders") to sell all of the Shares of the Company held by them
to the party or parties whose Sale Proposal was accepted as hereinabove provided, for the same
per share consideration (equitably adjusted to take into account the exercise price of any options
or warrants) and otherwise on the terms and conditions provided in this Section 6.

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         6.2    Compelled Sale Notice

                  The Company, if instructed in writing by the Approving Stockholders, will send
written notice (the "Compelled Sale Notice") of the exercise of the rights of the Approving
Stockholders pursuant to this Section 6 to each of the Remaining Stockholders setting forth the
consideration per share to be paid pursuant to the Sale Proposal and the other terms and
conditions of the transaction.  Each Remaining Stockholder, upon receipt of the Compelled Sale
Notice, will be obligated to (i) vote its Shares in favor of such Sale Proposal at any meeting of
stockholders in the Company called to vote on or approve such Sale Proposal, (ii) sell all of its
Shares and participate in the transaction (the "Compelled Sale") contemplated by the Sale
Proposal and (iii) otherwise take all necessary action, including, without limitation, expressly
waiving any dissenter's rights or rights of appraisal or similar rights, providing access to
documents and records of the Company, entering into an agreement reflecting the terms of the
Sale Proposal, surrendering stock certificates, giving any customary and reasonable
representations and warranties given by other stockholders (e.g., as to title to the Shares and that
such sale does not contravene any laws or regulations applicable to such Remaining Stockholder)
and executing and delivering any certificates or other documents reasonably requested by the
Approving Stockholders and their counsel, to cause the Company and the Approving
Stockholders to consummate such Compelled Sale.  Any such Compelled Sale Notice may be
rescinded by the Approving Stockholders by delivering written notice thereof to all of the
Remaining Stockholders.

         6.3    Conditions to Compelled Sale

                  The obligations of Holders pursuant to Section 6.1 and Section 6.2 are subject to
the condition that the purchaser whose Sale Proposal was accepted agrees that in the event that
Holders are required to provide any representations, warranties or indemnities in connection with
the Compelled Sale (other than representations, warranties and indemnities concerning each
Holder's valid ownership of its shares of capital stock of the Company, free of all liens and
encumbrances (other than those arising under applicable securities laws), and each Holder's
authority, power and right to enter into and consummate the Compelled Sale without violating
any other agreement), then, each Holder (i) will not be liable for more than its pro rata share
(based upon the consideration received) of any liability for misrepresentation, breach of warranty
or indemnity, (ii) such liability will not exceed the total purchase price received by such Holder
for its Shares and (iii) such liability will be satisfied solely out of any funds escrowed for such
purpose.

7.      Changes in Stock

         If, from time to time during the term of this Agreement,

         (a)         there is a dividend of any security, stock split or other change in the character or
amount of any of the outstanding securities of the Company, or

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         (b)         there is any consolidation or merger immediately following which stockholders of
the Company hold more than 50% of the voting equity securities of the surviving corporation,

then, in such event, any and all new, substituted or additional securities or other property to
which any Holder is entitled by reason of his ownership of the Shares will be immediately
subject to the provisions of this Agreement and be included in the meaning of the term "Shares"
for all purposes of this Agreement with the same force and effect as the Shares presently subject
to this Agreement.

8.      Voting

         8.1    Agreement to Vote

                  Each Holder, with respect to its Shares, hereby agrees to hold all of such Shares
and any other voting securities of the Company acquired by such Holder in the future (and any
other securities of the Company issued with respect to, upon conversion of, or in exchange or
substitution for any of the foregoing), (hereinafter collectively referred to as the "Voting Shares")
subject to, and to vote the Voting Shares at regular or special meetings of stockholders and/or
give written consent with respect to such Voting Shares in accordance with, the provisions of this
Agreement.  

         8.2    Board Size; Meetings

                  The number of directors comprising the Board of Directors of the Company shall
be seven (7) unless changed in accordance with the provisions of the By-Laws of the Company
and Section 8.8 hereof.  A quorum necessary for the transaction of business by the Board of
Directors at a Board of Directors meeting will be at least three (3) Directors, two of whom will
be Directors nominated by the Investors that have exercised their right to nominate Directors.
The Directors will meet either in person or by means of conference telephone or other
communications equipment by means of which all persons participating in the meeting can hear
each other. 

         8.3    Election of Directors

                  (a)         (i) For so long as the CDP Investor remains a Holder, the Company agrees
to nominate for election to its Board of Directors a nominee of the CDP Investor (the "CDP
Nominee"); (ii) for so long as BAPEF Investments XII Ltd. ("BAPEF") remains a Holder, the
Company agrees to nominate for election to its Board of Directors a nominee of BAPEF (the
"BAPEF Nominee"); and (iii) for so long as Mercantile remains a Holder, the Company agrees
to nominate for election to its Board of Directors a nominee of Mercantile (the "Mercantile
Nominee") such that at all times, if requested by the CDP Investor,  BAPEF or Mercantile (as the
case may be), the Company's Board of Directors contains one CDP Nominee, one BAPEF
Nominee, and one Mercantile Nominee.  The Company also agrees to nominate for election to its
Board of Directors each of the following:  (i) Phillip Kelly (so long as he remains an employee of
the Company), as Chairman; (ii) Dennis Smith (so long as he remains an employee of the
Company), as Vice-Chairman; and (iii) two (2) "independent directors" as such term is defined
by the U.S. securities laws and the rules and regulations promulgated by the SEC thereunder or
by any of the rules of any exchange on which the Company's securities are traded (the
"Independent Directors").

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                  (b)         The CDP Nominee,  BAPEF Nominee, and Mercantile Nominee shall be
designated by an authorized representative of  the CDP Investor,  BAPEF and Mercantile,
respectively, and the remaining nominees shall be designated by the Company.  If the CDP
Nominee,  BAPEF Nominee or Mercantile Nominee should resign from the Company's Board of
Directors or if the CDP Nominee,  BAPEF Nominee or Mercantile Nominee should die or
otherwise be removed from office, the Company shall nominate and use its commercially
reasonable efforts to cause the resulting vacancy to be filled with another CDP Nominee,
BAPEF Nominee or Mercantile Nominee, as the case may be, similarly designated.

                  (c)         Each of the Holders, by its execution of this Agreement, agrees to use its
reasonable efforts to cause the CDP Nominee (for so long as the CDP Investor remains a
Holder), BAPEF Nominee (for so long as BAPEF remains a Holder), Mercantile Nominee (for so
long as Mercantile remains a Holder), Phillip Kelly (for so long as he remains an employee),
Dennis Smith (for so long as he remains an employee), and the Independent Directors to be
elected or appointed in any and all elections or appointments of directors of the Company,
including, without limitation, voting all shares of its Shares over which it then exercises voting
control in favor of the CDP Nominee,  BAPEF Nominee, Mercantile Nominee, Phillip Kelly,
Dennis Smith, and the Independent Directors in connection with any election of Company
directors.  Notwithstanding the immediately preceding sentence, no Holder who is a director of
the Company will be required to cause the election of any CDP Nominee, BAPEF Nominee,
Mercantile Nominee, Phillip Kelly, Dennis Smith or the Independent Directors through action as
such director if the Board of Directors of the Company determines in good faith, based as to legal
matters on the advice of independent counsel, that the election or appointment of such CDP
Nominee,  BAPEF Nominee, Mercantile Nominee, Phillip Kelly, Dennis Smith or the
Independent Directors, as the case may be, would be inconsistent with the fiduciary duty owed by
such Board of Directors to all the stockholders of the Company; provided that the foregoing shall
not detract from the right of the CDP Investor, BAPEF, Mercantile, or the Company, as the case
may be, to nominate another CDP Nominee,  BAPEF Nominee, Mercantile Nominee, or other
nominee, as the case may be, for such position.

                  (d)         A director nominated by the CDP Investor shall be entitled to be a member
of each committee maintained by the Board of Directors, provided that the nomination of such
director to such committee would not contravene the U.S. securities laws and the rules and
regulations promulgated by the SEC thereunder or any of the rules of any exchange on which the
Company's securities are traded.  A director nominated by each of the CDP Investor, BAPEF and
Mercantile shall each be entitled to be a member of the compensation committee of the Board of
Directors, provided that the nomination of each such director to the compensation committee
would not contravene the U.S. securities laws and the rules and regulations promulgated by the
SEC thereunder or any of the rules of any exchange on which the Company's securities are
traded.

                  (e)         A vote cast or written consent given by a director of the Company who is a
Holder or has been elected or appointed as a representative of a Holder as provided in this
Section 8.3 that is contrary to the voting mechanism set out in this Section 8.3 shall be deemed a
breach of this Agreement.

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         8.4    No Liability for Election of Recommended Directors

                  None of the Company, the Holders, nor any officer, director, stockholder or
shareholder, partner, employee or agent of such party, makes any representation or warranty as to
the fitness or competence of the nominee of any party hereunder to serve on the Board by virtue
of such party's execution of this Agreement or by the act of such party in voting for such
nominee pursuant to this Agreement.

         8.5    Grant of Proxy; Restrictions in Other Agreements

                  (a)         Should the provisions of this Agreement be construed to constitute the
granting of proxies, such proxies will be deemed coupled with an interest and are irrevocable for
the term of this Agreement.

                  (b)         No Holder may enter into any agreement or arrangement with any person
with respect to the Preferred Stock or the Common Stock on terms inconsistent with the
provisions of this Agreement. 

         8.6    Specific Enforcement

                  Each party hereto agrees that its obligations hereunder are necessary and
reasonable in order to protect the other parties to this Agreement, and each party expressly agrees
and understands that monetary damages would inadequately compensate an injured party for the
breach of this Agreement by any party, that this Agreement will be specifically enforceable, and
that, in addition to any other remedies that may be available at law, in equity or otherwise, any
breach or threatened breach of this Agreement will be the proper subject of a temporary or
permanent injunction or restraining order, without the necessity of proving actual damages.
Further, each party hereto waives any claim or defense that there is an adequate remedy at law for
such breach or threatened breach.

         8.7    Observer Rights

                  For so long as the CDP Investor remains a Holder, in addition to its right to
nominate a director pursuant to Section 8.3, it will also have the right to designate one (1) person
to be an observer at each Board of Directors meeting.  In addition, for so long as the CDP
Investor remains a Holder it will also have the right to designate one (1) person to be an observer
(or to participate by telephone) at each operations meeting held by the Company's chief
executive officer, president, chief financial officer, chief operations officer and the heads of each
the Company's business units, which meetings will be held no less frequently than quarterly.
Each observer will be entitled to participate fully in all discussions among directors and officers,
as the case may be (but not entitled to vote) at such meetings, and to receive all notices of
meetings and other materials (including minutes, resolutions and all other material or
information) provided to the directors or officers of the Company, as the case may be, subject to
any restrictions under applicable law and to the execution of a confidentiality agreement
acceptable to the Company.  

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         8.8    Restrictions on Certain Corporate Actions

                  So long as any shares of Preferred Stock are outstanding and prior to the Liquidity
Date, the Company will not without first obtaining the approval of the CDP Investor, so long as it
remains a Holder, and the holders of at least a majority of Shares, calculated on the basis of the
number of shares of Common Stock constituting the Shares on a fully diluted basis, held by all the
Holders:

                  (a)         increase the size of the Board of Directors of the Company to a number of
members in excess of seven (7); 

                  (b)         sell or dispose of all or substantially all of the Company's assets or any of
its assets with a book value in excess of US$250,000 in respect of any one transaction or in
excess of an aggregate of US$500,000 in any one financial year, provided, however, that such
approval shall not be required in the event such sale or disposal is in connection with a
Qualifying Sale or sales in the ordinary course of business;

                  (c)         increase, reduce, split, consolidate (reverse split) or cancel its authorised
or issued share capital, issue or grant any option over any shares or securities convertible into or
exchangeable for shares of Common Stock (except than by redemption or to cover conversions
or pursuant to any of the Company's 2001 Stock Option/Stock Issuance Plan and Employee
Stock Purchase Plan), or issue or grant any other option over its unissued share capital, or list the
Common Stock of the Company on any stock exchange, provided, however, that such approval
shall not be required in the event any such action occurs in connection with a Qualifying
Offering; and provided, further, that all Holders by executing this Agreement are consenting to
the reverse split of the Company's outstanding Common Stock as contemplated under
Section 7.14 of the Series 4-A Purchase Agreement;

                  (d)         terminate or approve the hiring or termination of the Company's Chief
Executive Officer, Chief Financial Officer, Chief Operating Officer or President, provided,
however, that such approval shall not be required in the event any such termination is in
connection with a Qualifying Sale;

                  (e)         increase the aggregate number of Common Stock that may be issued under
the Company's stock option and stock issuance plans to an amount greater than 18.5% of the
total issued and outstanding share capital of the Company (calculated on the basis of the number
of shares of 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), as of the time that is immediately after
the First Closing (as defined under the Series 4-A Purchase Agreement) or if a Second Closing
(as defined under the Series 4-A Purchase Agreement) occurs, then immediately after the Second
Closing;

                  (f)         cease any material business in which the Company or its subsidiaries are
currently involved (a "Current Business"), materially change any of its Current Businesses or
materially engage in any business other than a Current Business (the Company will be deemed,
without limitation, to have "materially engaged" in a business if it invests more than
US$250,000 in the aggregate in such business); or

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                  (g)         amend the terms of the Certificate of Designation of the Series 4-A
Preferred Stock (the "Series 4-A Certificate of Designation").

         8.9    Restrictions on Certain Board Actions

                  So long as any shares of Preferred Stock are outstanding and prior to the Liquidity
Date, the Company will not, without first obtaining the approval of at least a majority vote of the
Board of Directors which must include the affirmative vote of the CDP Nominee, so long as the
CDP Investor remains a Holder:   

                  (a)         borrow or raise any sum of money from any source in excess of
US$5,000,000 or issue securities of the Company to financial institutions or lessors in connection
with commercial credit arrangements, equipment financings or similar transactions not intended
primarily for equity-financing purposes, provided, however, that approval of the CDP Nominee
shall not be required in the event such actions are in connection with a Qualifying Offering; 

                  (b)         acquire or dispose of any interest in any other company, corporation,
partnership, or business or incorporate or establish any other company, corporation, partnership
or business, provided, however, that approval of the CDP Nominee shall not be required in the
event such acquisition or disposal is in connection with a Qualifying Sale;

                  (c)         make any loan or advance or give any credit (other than trade credit) other
than in the ordinary course of business;

                  (d)         give any guarantee or indemnity to secure the liabilities or obligations of
any person, firm or corporation exceeding in the aggregate the sum of US$5,000,000 at any one
time;

                  (e)         do, permit or suffer to be done any act or thing whereby the Company or
any of its subsidiaries may be wound up, dissolved or liquidated (whether voluntarily or
compulsorily);

                  (f)         enter into any contracts above the sum of US$1,000,000 which are of a
nature outside the ordinary course of business  in respect of any one transaction, provided,
however, that approval of the CDP Nominee shall not be required in the event such contract is
entered into in connection with a Qualifying Offering or Qualifying Sale;

                  (g)         adopt or revise any proposed budget or the revolving three-year business
plan of the Company;

                  (h)         acquire any investment or incur any capital commitment not stated in the
budget in excess of  US$250,000 at any time in respect of any one transaction or in excess of
US$500,000 in the aggregate in any one fiscal year;

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                  (i)         approve transactions involving the interest of any director or stockholder
of the Company or any of its subsidiaries, including but not limited to the making of any loans or
advances, whether directly or indirectly, to any Founder or the provision of any guarantee,
indemnity or security for or in connection with any indebtedness or liabilities of any Founder; 

                  (j)         undertake any merger, reconstruction or liquidation exercise concerning
the Company or any of its subsidiaries, provided, however, that approval of the CDP Nominee
shall not be required in the event such merger, reconstruction or liquidation exercise is in
connection with a Qualifying Sale; 

                  (k)         grant any options or issue stock under the Company's stock option or
stock issuance plans, respectively, at an exercise or purchase price less than the price at which the
Series 4-A Preferred Stock may be converted into shares of Common Stock, as adjusted from
time to time;

                  (l)         increase the number of shares of Common Stock that may be purchased by
the Founders under the Company's stock option and stock issuance plans to an amount greater
than twelve percent (12%) of the total issued and outstanding share capital of the Company,
(calculated on the basis of the number of shares of 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), as of the time that is immediately after the First Closing (as defined under the Series
4-A Purchase Agreement) or if a Second Closing (as defined under the Series 4-A Purchase
Agreement) occurs, then immediately after the Second Closing;

                  (m)         create any mortgage, charge, lien, pledge, encumbrance or security or other
interest on any assets of the Company or any of its subsidiaries in excess of US$5,000,000;

                  (n)         take any action which, to the Company's knowledge, is likely to result in
the Multimedia Super Corridor status ("MSC status") of its Malaysian subsidiary, Vsource
(Malaysia) Sdn Bhd, being lost or impaired; or

                  (o)         issue or sell stock, warrants or other securities or rights to persons or
entities with which the Company has business or strategic relationships provided such issuances
are for other than primarily equity financing purposes.

         8.10  Manner of Voting

                  The voting of shares pursuant to this Agreement may be effected in person, by
proxy, by written consent, or in any other manner permitted by applicable law.  

9.      Departing Founder

         9.1    Escrow Account

                  Prior to the Liquidity Date, if any Founder voluntarily terminates his employment
with the Company (a "Departing Founder"), he shall no longer be deemed a Holder and shall
promptly place all shares of Series 4-A Preferred Stock and shares of Common Stock which

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were issued upon conversion of Preferred Stock then held by him (the "Escrow Securities") in an escrow
account (the "Escrow Account") held by an escrow agent selected by the Company and reasonably
satisfactory to the Departing Founder ("Escrow Agent").  All securities issued in respect of the
Escrow Securities by way of stock dividends shall be deemed Escrow Securities and shall be
deposited in the Escrow Account.  The Escrow Account shall be subject to the following conditions:

                  (a)         The Escrow Securities shall remain in the Escrow Account unless
otherwise purchased pursuant to Section 9.1(b) or Section 9.1(d) below from the date such
Founder places the Escrow Securities in the Escrow Account until the day (the "Release Date")
which is forty-five (45) days after the Trigger Date (the "Escrow Period"), provided, however
that such Escrow Securities shall be released from the Escrow Account in the event the Escrow
Securities have not been purchased, or the Trigger Date has not occurred, by November 15, 2006.
The "Trigger Date" is the earlier of (i) the Liquidity Date and (ii) the date of the closing of the
purchase by the Company of more than fifty percent (50%) of the total number of Shares
outstanding pursuant to the exercise by the Investors of their put rights stated herein and in the
Company's Certificate of Designation with respect to the Preferred Stock.

                  (b)         At any time beginning on the date of voluntary termination of employment
by the Departing Founder and ending on the last date of the Escrow Period: (i) the Company shall
have the right to purchase all but not less than all of the Escrow Securities by delivery of a
written notice (a "Company Escrow Purchase Notice") to the Departing Founder, the Escrow
Agent and the Investors; and (ii) each Investor shall have a one-time right to purchase up to the
total amount of all such Escrow Securities by delivery of a written notice (an "Investor Escrow
Purchase Notice") to the Departing Founder, the Escrow Agent, the Company and the other
Investors, provided, however, that in the event the number of shares of Escrow Securities each
Investor desires to purchase exceeds the number of shares of Escrow Securities available, the
Company shall notify each such Investor, and within thirty (30) days after delivery (except as
provided below) of the Investor Escrow Purchase Notice, each such Investor will be entitled to
obtain that portion of the Escrow Securities which is equal to the proportion that the number of
shares of Common Stock issued and held, or issuable upon conversion of the shares of Series 4-A Preferred Stock then held by such Investor bears to the total number of  shares of Common
Stock issued and held, or issuable upon conversion of the shares of Series 4-A Preferred Stock
then held, by all Investors who wish to purchase the Escrow Securities; provided, further,
however, that an Investor's right to purchase Escrow Securities shall be subject to the Company's
preferential right to purchase all but not less than all of the Escrow Securities as set forth below
and shall terminate upon delivery of a Company Escrow Purchase Notice. 

                  (c)         Upon delivery of an Investor Escrow Purchase Notice, the Company shall,
for a period of thirty (30) days from delivery of such Investor Escrow Purchase Notice, have the
right to purchase all but not less than all of the Escrow Securities set forth in such Investor
Escrow Purchase Notice.  If the Company exercises such right, the Investor that delivered the
Investor Escrow Purchase Notice shall not be deemed to have exercised its one time right to
purchase Escrow Securities.

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                  (d)         Upon the Trigger Date and for a period of thirty (30) days from the Trigger
Date, each Investor (regardless as to whether or not it has exercised its right to purchase Escrow
Securities set forth in Section 9.1(b) above) shall have the right to purchase any remaining
Escrow Securities.  In the event the number of shares of Escrow Securities each such Investor
desires to purchase exceeds the number of shares of Escrow Securities available, such shares of
Escrow Securities shall be allocated by the Escrow Agent pro-rata among such Investors (based
on the total number of Shares, calculated on the basis of the number of shares of Common Stock
constituting the Shares on a fully diluted basis, held by all the Investors as at the date hereof)
until all the remaining Escrow Securities have been purchased or there are no Investors seeking
to purchase the remaining Escrow Securities.  

                  (e)         The purchase price per share of Escrow Securities (i) shall be the average
of the daily closing prices of the Common Stock on the principal exchange or NASDAQ on
which the Common Stock is then listed or admitted to trading, as applicable, over the thirty (30)
consecutive trading days immediately preceding (and not including) the date of the Company
Escrow Purchase Notice, Investor Escrow Purchase Notice, or the Trigger Date, as the case may
be, or (ii) shall be determined in good faith by the Board of Directors of the Company in the
event the Escrow Securities are not publicly traded, in each case less a discount of thirty percent
(30%) of such average daily closing price (the amount of such discount applied per Escrow
Security, the "Discount").

                  (f)         In the event (i) any Investor has exercised its right to purchase Escrow
Securities (such party, an "Exercising Party") and (ii) the offering price for a primary or
secondary offering by the Company of Common Stock or the purchase price per Common Stock
in connection with a Qualifying Sale exceeds the 30% IRR Price, and such offering or Qualifying
Sale takes place within twelve (12) months from the date that a Founder voluntarily terminates
his employment with the Company, then each Exercising Party shall pay to the Departing
Founder an amount in cash or in equivalent shares of Common Stock equal to the number of
Escrow Securities purchased by such Exercising Party pursuant to Section 9.1(b) or Section
9.1(d) above multiplied by the Discount, without interest.

         9.2    Rights of Departing Founder

                  During such time as a Departing Founder's Escrow Securities are in an Escrow
Account, the Departing Founder shall be entitled to exercise all rights with respect to such Escrow
Securities, including without limitation the right to vote such Escrow Securities, except as such
rights may be restricted under Section 9.1.

         9.3    Article V Put Option

              (a)         Founder Exercise of Article V Put Option

                           None of the Founders may exercise their respective put rights under Article
V.B. of the Series 4-A Certificate of Designation (the "Article V Put Option") unless the Founder
or Founders holding a majority of the Shares held by all the Founders in the aggregate (collectively,
the "Majority Founder") elect to exercise their Article V Put Option, in which case each Founder
agrees to exercise all of each Founder's Article V Put Options simultaneously.

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              (b)         Article V Escrow Account

                           (i)         Following exercise of their Article V Put Options under Section 9.3(a),
each Founder will be entitled to receive 61.0% of the actual proceeds from the exercise of such
Founder's Article V Put Option (the "Founder Put Amount") and each of the Founders agrees
that the Company will promptly transfer the remaining 39.0% of the proceeds (the "Article V
Escrow Amount") into the Article V Escrow Account (as defined below).  Such Article V
Escrow Amount will remain in the Article V Escrow Account until the earlier of (i) six months
after the date such Article V Escrow Amount was deposited into the Article V Escrow Account
and (ii) the date that the CDP Investor has been paid in full under Section 9.3(b)(iii) below (the
"Article V Escrow Period").

                           (ii)         During the Article V Escrow Period, if the CDP Investor exercises its
Article V Put Option and receives less than the full amount of proceeds to which it is entitled
under the terms of Article V.B of the Series 4-A Certificate of Designation (the "Full CDP
Amount"), it may deliver to each of the Founders a Shortfall Certificate.  The "Shortfall
Certificate" shall be a certificate executed by the CDP Investor setting forth (x) the Full CDP
Amount and (y) the amount of proceeds actually received by the CDP Investor from the
Company following its exercise of the Article V Put Option (the "Actual CDP Amount").

                           (iii)         The CDP Investor may, at any time after the date that is 10 business days
after the issuance of the Shortfall Certificate and prior to the expiration of the Article V Escrow
Period, instruct the Article V Escrow Agent (as defined below) to distribute all Article V Escrow
Amounts to the Founders and to the CDP Investor in accordance with the following percentages,
until such time as the sum of (x) the Article V Escrow Amount distributed to the CDP Investor in
accordance with this Section 9.3(b)(iii) and (y) the Actual CDP Amount, equals the Full CDP
Amount:

	CDP Investor	65.3%
	Phillip Kelly	19.0%
	John Cantillon	8.3%
	Dennis Smith	7.4%

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                           For purposes of Section 9.3, the "Article V Escrow Account" means an
escrow account set up pursuant to escrow arrangements reasonably mutually agreed to by the CDP
Investor and the Majority Founder.  The "Article V Escrow Agent" shall be a person or entity
reasonably mutually agreed to by the CDP Investor and the Majority Founder to administer the
Article V Escrow Account. 

                           (iv)         Upon expiration of the Article V Escrow Period, and in the event there are
any Article V Escrow Amounts remaining, any Founder may instruct the Article V Escrow Agent
to distribute all such remaining Article V Escrow Amounts to the Founders in accordance with
the following percentages:

	Phillip Kelly	54.7%
	John Cantillon	23.9%
	Dennis Smith	21.4%

                           (v)         The CDP Investor's right to receive the Article V Escrow Amounts in
accordance with the percentages set forth Section 9.3(b)(iii) shall only apply with respect to the
exercise of the CDP Investor's Article V Put Option for its Shares purchased at the First Closing
(as defined in the Series 4-A Purchase Agreement) and Second Closing (as defined in the Series
4-A Purchase Agreement), and for the avoidance of doubt shall not apply with respect to the
exercise of the CDP Investor's Article V Put Option for Shares purchased at an Additional
Closing (as defined in the Series 4-A Purchase Agreement) or otherwise.

10.   Section 10 Put Option

         If at any time during the term of this Agreement there is a material breach by the Company
of Sections 5(d) (Prohibited Transfers), 6.2 (Compelled Sale Notice), 8.1 (Agreement to Vote), 8.2
(Board Size; Meetings), 8.3 (Election of Directors), 8.7 (Observer Rights), 8.8 (Restrictions on
Certain Corporate Actions), 8.9 (Restrictions on Certain Board Actions), 9.3 (Article V Put Option),
11 (Access to Information), 12 (Other Covenants of the Company), 14 (Amendments and Waivers)
or 20 (Further Assurances) under this Agreement, and provided that the Company has not remedied
such material breach to the satisfaction of the New Investors (as defined below) within thirty (30)
days after the date of receipt by the Company of a Section 10 Put Notice (as defined below) (the
"Notice Period"), then in lieu of any damages and such other remedies as may be available at law,
equity, under the Company's Charter or hereunder, the CDP Investor and each of the Additional
Series 4-A Investors (together, the "New Investors") shall have the right, in addition to any put right
contained in the Company's Charter, to require the Company to purchase all, but not less than all,
of the Series 4-A Preferred Stock held by such New Investor at a price per share equal to US$2,000
plus an amount which would yield an IRR to each New Investor of ten percent (10%) (the "Section
10 Put Amount") to the date of such purchase, provided, however, that in calculating the IRR, the
first date in the measurement of the present value will be the date of the First Closing and the last
date will be the date of payment of the Section 10 Put Amount.  In order to complete a purchase by
the Company pursuant to this Section 10, the New Investor shall submit to the Company, copied to
each other New Investor,  an executed notice within sixty (60) days of such material breach, setting
forth the particulars of the breach and the number of shares of Series 4-A Preferred Stock to be
purchased by the Company (a "Section 10 Put Notice").  Each other New Investor may within twenty
(20) days of the date of such Section 10 Put Notice serve notice (a "Section 10 Additional Put
Notice") on the Company requiring the Company to purchase all, but not less than all, of the Series
4-A Preferred Stock held by such New Investor at a price per share equal to the Section 10 Put
Amount.  If the Company has been unable to remedy the material breach to the satisfaction of the
New Investors prior to the expiration of the Notice Period, then the Company shall pay each New
Investor that serves a Section 10 Put Notice or a Section 10 Additional Put Notice its Section 10 Put
Amount, by cash, certified check, wire transfer or any combination thereof, with respect to each
share of Series 4-A Preferred Stock within fifteen (15) days after the end of the Notice Period against
surrender of the related Series 4-A Preferred Stock Certificates.

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11.   Access to Information

         11.1  Delivery of Financial Statements

                  The Company will deliver to each Director on the Board of Directors:

                  (a)         as soon as practicable, but in any event within ninety (90) days after the
end of each fiscal year of the Company, an audited consolidated balance sheet of the Company
and its subsidiaries as of the end of such fiscal year and the related audited consolidated
statements of income, stockholders' equity and cash flows for the fiscal year then ended,
prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), and
certified by a firm of independent public accountants of recognized international standing
selected by the Board of Directors of the Company, provided, however, that nothing herein shall
be deemed to excuse a director of the Company from his or her duties or liabilities as a director
of the Company;

                  (b)         as soon as practicable, but in any event within twenty (20) days after the
end of each month in each fiscal year (other than the last month in each fiscal year), beginning
with the month ending October 31, 2002, a consolidated balance sheet of the Company and its
subsidiaries, and the related consolidated statements of income, stockholders' equity and cash
flows, unaudited but prepared in accordance with GAAP and certified by the chief financial
officer of the Company, such consolidated balance sheet to be as of the end of such month and
such consolidated statements of income, stockholders' equity and cash flows to be for such
month and for the period from the beginning of the fiscal year to the end of such month, in each
case with comparative statements for the prior fiscal year, and the projected budget; and, at the
time of delivery of each such monthly statement, a management narrative report explaining all
significant variances from forecasts and all significant current developments in staffing,
marketing, sales and operations, and a status report with respect to the following: (i) the Support
Services Agreement, dated October 24, 2001, among the Company, Gateway Japan Inc. and the
Company's Cayman subsidiary, Vsource (CI) Ltd. (the "Gateway Contract"), including the
Company's compliance with the Service Levels (as such term is defined in the Gateway
Contract); and (ii) the MSC status of the Company's Malaysian subsidiary, Vsource (Malaysia)
Sdn Bhd;

                  (c)         as soon as practicable, but in any event at least by the start of each fiscal
year, a revolving three year business plan; and

                  (d)         as early as practicable, but in any event at least no later than thirty (30)
days prior to the start of each fiscal year, a business plan, consolidated capital and operating
expense budgets, cash flow projections and income and loss projections for the Company and its
subsidiaries in respect of such fiscal year, all itemized in reasonable detail and prepared on a
monthly basis, and, promptly after preparation, any revisions to any of the foregoing.

         11.2  Inspection

                  The Company will permit each Holder at such Holder's expense, to visit and
inspect the Company's properties, to examine its books of account and records and to discuss the
Company's affairs, finances and accounts with its officers, all at such reasonable times

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as may be
reasonably requested by the Holder; provided, however, that the Company will not be obligated
pursuant to this Section 11.2 to provide access to any information that it reasonably considers to
be a trade secret or similar confidential information, and provided further that the Company may
require the Holder to execute a confidentiality and nondisclosure agreement prior to any such
visit and inspection.

12.	   Other Covenants of the Company

         12.1  General

                  The Company agrees and covenants with each Investor as follows:

                  (a)         to use its commercially reasonable efforts to maintain the registration of its
Common Stock under Section 12(g) of the Securities Exchange Act of 1934, as amended;

                  (b)         to notify each Investor promptly and from time to time of any material
pending or threatened or contemplated arbitrations, actions, suits or proceedings against or
affecting the Company, any of its subsidiaries or any of their respective assets or properties;

                  (c)         to procure that it and each of its subsidiaries will at all times comply in all
material respects with any applicable legislation or regulation and any condition of any authority
or consent relating to this Agreement and/or its business and operations, and will notify each of
the Investors in writing immediately in the event of any breach or non-compliance which could
have a material adverse effect on the financial condition, results or operations of the Company;

                  (d)         to procure that all senior officers, key employees and consultants of the
Company and its subsidiaries enter into non-disclosure agreements;

                  (e)         to use its commercially reasonable efforts to maintain insurance policies in
respect of the Company's and its subsidiaries' assets which are of an insurable nature in amounts
reasonably regarded as adequate by the Board of Directors against fire and other risks normally
insured against by companies carrying on similar businesses or owning property of a similar
nature;

                  (f)         to maintain all statutory books and records of the Company and each of its
subsidiaries so as to ensure that such statutory books and records shall at all times accurately
reflect the current status of the Company and each of its subsidiaries; and

                  (g)         within thirty (30) days after the First Closing (as defined in the Series 4-A
Purchase Agreement), to commence an offer (the "Offer") to the holders of all of the Series 1-A
Preferred Stock, Series 2-A Preferred Stock, Series 3-A Preferred Stock (including holders that
have not yet converted their Series A Convertible Notes and Series B-1 Exchangeable Notes into
Series 3-A Preferred Stock) (collectively, the "Convertible Securities") and Series B Warrants
and Series B-1 Warrants (the "Series B Warrants") other than BAPEF, Mercantile, Asia Internet
Investment Group I, LLC, and the Founders (collectively, the "Other Stockholders"), pursuant to
which the Other Stockholders may in their discretion: (i) keep their existing equity holding in the
Company unchanged, (ii) exchange their Convertible Securities (other than the Series 1-A
Preferred Stock) or Series B Warrants for shares of Series 4-A Preferred Stock at the same
exchange ratio

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which BAPEF, Mercantile, Asia Internet Investment Group I, LLC, and the
Founders exchanged their applicable class of Convertible Securities and/or Series B Warrants
pursuant to the Convertible Securities Exchange Agreement entered into by and among the
Company, BAPEF, Mercantile, Asia Internet Investment Group I, LLC, and the Founders as of
October 23, 2002, (iii) exchange their shares of Series 1-A Preferred Stock for shares of Series 4-A Preferred Stock at an exchange ratio of one share of Series 4-A Preferred Stock for every
2,642.01 shares of Series 1-A Preferred Stock or (iv) sell their Series 1-A Preferred Stock to the
Company for cash at a price equal to US$0.76 per share of Series 1-A Preferred Stock.
Following completion of the Offer, the Company shall prepay the principal and accrued interest
on any Series A Convertible Notes and Series B-1 Exchangeable Notes that remain outstanding
at such time.  In conducting the Offer, the Company shall use its reasonable efforts so that the
number of Other Stockholders who elect option (i) above is minimized, subject to the foregoing
parameters.

                  Each of the Holders, by its execution of this Agreement, agrees to use its reasonable
efforts, including, without limitation, voting all shares of its Shares over which it then exercises
voting control, to cause the Company to commence the Offer.

         12.2  Key Person Life Insurance and Director Liability Insurance

                  The Company shall use commercially reasonable efforts to maintain, at its
expense, "key person" life insurance insuring the lives of each of the Founders and designating
the Company as the beneficiary of a death benefit of at least US$1,000,000 for each such
individual while such individual is an employee of the Company.  

                  The Company shall use commercially reasonable efforts to maintain, at its
expense, directors' and officers' liability insurance providing coverage of at least US$10,000,000
and for no more than one year's prior acts. 

         12.3  Special Covenants with Respect to SBICs

                  For so long as any Investor which is identified to the Company as a small business
investment company, licensed and regulated by the U.S. Small Business Administration under
the U.S. Small Business Investment Act of 1958, as amended (a "SBIC Holder") owns any of the
Company's securities, (i) the Company shall provide to each SBIC Holder the financial
information contained in Section 11.1 of this Agreement and (ii) the Company shall provide each
SBIC Holder the inspection rights contained in Section 11.2 of this Agreement, without regard to
the amount of securities of the Company owned by such SBIC Holder.

         12.4  Post-Closing Percentages

                  (a)         The Company shall, on each anniversary of the First Closing (as defined in
the Series 4-A Purchase Agreement) until the earliest of (i) the Second Closing, (ii) the Liquidity
Date or (iii) March 31, 2006, certify in writing (each such certification a "First Closing
Certification") to each Initial Investor (as defined in the Series 4-A Purchase Agreement) such
Initial Investor's percentage holding of the Company's issued and outstanding Common Stock on
a fully diluted basis (excluding, for the purpose of calculating such fully diluted amount, any of
the 1,761,724 shares of Common Stock issuable upon exercise or conversion of the convertible
securities identified as

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"Other Warrants and Options" in Schedule 3 of the Series 4-A Purchase
Agreement if and only if the exercise price or strike price of such Other Warrants and Options is
higher than the market price of such Other Warrants and Options on the date of such
certification) as of the time immediately after the First Closing.  If the percentage holding in any
First Closing Certification is less than the percentage for the First Closing set forth in
Section 2.2(c) of the Series 4-A Purchase Agreement (the "Post-First Closing Percentage"), then
the Company shall promptly and in any case within sixty (60) days of the date of the relevant
First Closing Certification pay the Initial Investor in cash an amount (the "First Closing
Shortfall Amount") equal to US$0.10 per share of Common Stock that would have been
required to be held by the Initial Investor immediately after the First Closing in order for the
Initial Investor's shareholdings to equal the Post-First Closing Percentage (the "First Closing
Shortfall Shares"), plus a sum equal to an IRR of 30%, provided, however, that the first date in
the measurement of the present value will be the date of the First Closing and the last date will be
the date of such payment.  With respect to each First Closing Certification, the Company will not
be required to pay any First Closing Shortfall Amount on First Closing Shortfall Shares for
which it has previously paid a First Closing Shortfall Amount.  For purposes of determining the
Initial Investors' percentage holding pursuant to this Section 12.4(a), the exchanges of securities
that are contemplated in connection with the Offer will be deemed to have been completed
simultaneously with the First Closing.

                  (b)         If the Second Closing is completed, the Company shall, on each
anniversary of the Second Closing until the earliest of (i) the Liquidity Date or (ii) March 31,
2006, certify in writing (each such certification a "Second Closing Certification") to each Initial
Investor such Initials Investor's percentage holding of the Company's issued and outstanding
Common Stock on a fully diluted basis (excluding, for the purpose of calculating such fully
diluted amount, any of the 1,761,724 shares of Common Stock issuable upon exercise or
conversion of the convertible securities identified as "Other Warrants and Options" in Schedule
3 of the Series 4-A Purchase Agreement if and only if the exercise price or strike price of such
Other Warrants and Options is higher than the market price of such Other Warrants and Options
on the date of such certification) as of the time  immediately after the Second Closing.  If the
percentage holding in any Second Closing Certification is less than the percentage for the Second
Closing set forth in Section 2.2(c) of the Series 4-A Purchase Agreement (the "Post-Second
Closing Percentage"), then the Company shall promptly and in any case within sixty (60) days of
the date of the relevant Second Closing Certification pay the Initial Investor in cash an amount
(the "Second Closing Shortfall Amount") equal to US$0.10 per share of Common Stock that
would have been required to be held by the Initial Investor immediately after the Second Closing
in order for the Initial Investor's shareholdings to equal the Post-Second Closing Percentage (the
"Second Closing Shortfall Shares"), plus a sum equal to an IRR of 10%, provided, however,
that the first date in the measurement of the present value will be the date of the Second Closing
and the last date will be the date of such payment.   With respect to each Second Closing
Certification, the Company will not be required to pay any Second Closing Shortfall Amount on
Second Closing Shortfall Shares for which it has previously paid either a First Closing Shortfall
Amount or a Second Closing Shortfall Amount.  For purposes of determining the number of
Second Closing Shortfall Shares pursuant to this Section 12.4(b), the exchanges of securities that
are contemplated in connection with the Offer will be deemed to have been completed
simultaneously with the First Closing and the Initial Investor's percentage holding shall be
deemed to include any First Closing Shortfall Shares for which the Initial Investor received the
payment provided for in Section 12.4(a).

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                  (c)         For the avoidance of doubt, any changes in the Company's capitalization
resulting from the issuance or sale of shares of an existing or newly created class of securities to
investors originating after the First Closing or Second Closing, as the case may be, shall be
excluded from the calculation of the Company's issued and outstanding Common Stock on a
fully diluted basis for purposes of this Section 12.4, provided, however, that any Common Stock
or securities convertible or exchangeable into Common Stock issued after the First Closing, other
than in connection with the Offer, and, for the avoidance of doubt, any shares of Series 4-A
Preferred Stock issued at an Additional Closing (as defined in the Series 4-A Purchase
Agreement) and Common Stock issued or issuable upon the conversion of such additional Series
4-A Preferred Stock shall also be excluded from the calculation of the Company's issued and
outstanding Common Stock on a fully diluted basis for purposes of this Section 12.4.  Further,
the parties hereby agree that the payments provided for in this Section 12.4 shall be the sole
remedy for any breach by the Company of Section 2.2(c) of the Series 4-A Purchase Agreement.
If at any time after the issuance of a First Closing Certification or Second Closing Certification, it
is discovered that the First Closing Shortfall Amounts or Second Closing Shortfall Amounts
previously paid to an Initial Investor were in excess of such First Closing Shortfall Amounts or
Second Closing Shortfall Amounts actually due to such Initial Investor pursuant to Section 12.4,
then upon written notification by the Company, such Initial Investor shall pay the Company the
amount by which the First Closing Shortfall Amounts or Second Closing Shortfall Amounts
previously paid by the Company to such Initial Investor exceeds the First Closing Shortfall
Amounts or Second Closing Shortfall Amounts actually due to such Initial Investor pursuant to
Section 12.4.

13.     Legends on Stock Certificates

         (a)         In addition to compliance with the terms of this Agreement, no transfer of Shares may
be made except in compliance with applicable U.S. federal and state securities laws.
Accordingly, each certificate representing Shares now or hereafter held by or issued to any
stockholder will have placed thereon a legend in substantially the following form:

	"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."

         (b)         In addition to the foregoing, each certificate representing shares of capital stock of
the Company subject to this Agreement will bear in conspicuous type the following legend:

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	"THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE (AND
ALL TRANSFERS THEREOF) ARE SUBJECT TO CERTAIN RESTRICTIONS
CONTAINED IN A STOCKHOLDERS AGREEMENT, DATED AS OF
OCTOBER 25, 2002, BY AND AMONG CERTAIN STOCKHOLDERS OF
THE COMPANY AND THE COMPANY, A COPYO F WHICH IS ON FILE AT
THE MAIN OFFICE OF THE COMPANY."

14.    Amendments and Waivers

         Any term hereof may be amended and the observance of any term hereof may be waived
(either generally or in a particular instance and either retroactively or prospectively) only with the
written consent of the Company, the holders of at least a majority of the then outstanding Shares,
which must include the written consent of the CDP Investor, calculated on the basis of the
number of shares of Common Stock constituting the Shares on a fully diluted basis; provided,
however, that no amendment or waiver which adversely affects any Holder(s) or Founder(s) shall
be affected without the prior written consent of the majority of the Holders or Founders so
affected.  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.  In no event
may an amendment hereto that (a) increases the restrictions on the Preferred Stock or (b) limits
the rights of Holders to elect directors pursuant to Section 8 be effective without the consent of
each of the Holders of Series 4-A Preferred Stock in the case of clause (a) and without the
consent of the parties entitled to elect such directors in the case of clause (b).

15.    Successors and Assigns

         The provisions of this Agreement will inure to the benefit of and be binding upon the
successors in interest, heirs and assigns of the parties (including Permitted Transferees).  The
Company will not permit the transfer of any of the Shares on its books or issue a new certificate
representing any of the Shares unless and until the person to whom such security is to be
transferred has executed a written agreement, substantially in the form of this Agreement,
pursuant to which such person becomes a party to this Agreement and agrees to be bound by all
the provisions hereof as if such person were a Holder, or a Founder or an Investor, as applicable.
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.

         No Holder may transfer any rights under this Agreement except in connection with the
sale or transfer of Shares, provided that the CDP Investor, BAPEF and Mercantile may transfer
their rights under Section 8 to a party who acquires Shares from such party constituting at least
five percent (5%) of the total issued and outstanding share capital of the Company, 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), provided, further, however, that such party transferring the rights notifies the
Company and each other Holder in writing of such transfer.  In the event of such transfer of
rights, references in Section 8 to the party transferring such rights shall be deemed to refer to
such party receiving such rights.  

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16.    Stock Splits, Stock Dividends, etc.

         In the event of any issuance of shares of the Company's voting securities hereafter to any
of the parties hereto (including, without limitation, in connection with any Recapitalization),
such shares will become subject to this Agreement and will be endorsed with the legend set forth
in Section 13.

17.    	Additional Series 4-A Investors

         Upon the sale of Additional Series 4-A Shares to Additional Series 4-A Investors in
accordance with the Series 4-A Purchase Agreement, the Company, without prior action on the
part of any Investor, will require each Additional Series 4-A Investor to execute and deliver this
Agreement.  Each such Additional Series 4-A Investor, upon execution and delivery of this
Agreement by the Company and such Additional Series 4-A Investor, will be deemed an Investor
hereunder.

18.    Enforceability; Severability

         The parties hereto agree that each provision of this Agreement will be interpreted in such
a manner as to be effective and valid under applicable law.  If one or more provisions of this
Agreement are nevertheless held to be prohibited, invalid or unenforceable under applicable law,
such provision will be effective to the fullest extent possible excluding the terms affected by such
prohibition, invalidity or unenforceability, without invalidating the remainder of such provision
or the remaining provisions of this Agreement.  If the prohibition, invalidity or unenforceability
referred to in the prior sentence requires such provision to be excluded from this Agreement in its
entirety, the balance of the Agreement will be interpreted as if such provision were so excluded
and will be enforceable in accordance with its terms.  If necessary, the parties will, to the extent
permissible by applicable law, amend this Agreement, or enter into a voting trust agreement
under which the Voting Shares will be transferred to the voting trust created thereby, so as to
make effective and enforceable the intent of this Agreement.

19.    Termination

         The provisions of this Agreement will terminate upon the earlier to occur of:

                  (i)         the occurrence of the Liquidity Date;

                  (ii)         the closing date of a Qualifying Offering; 

                  (iii)         the sale of all or substantially all of the assets of the Company or the
consolidation or merger of the Company with or into any other business entity pursuant to which
stockholders of the Company prior to such consolidation or merger hold less than 50% of the
voting equity of the surviving or resulting entity;

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                  (iv)         the liquidation, dissolution or winding up of the business operations of the
Company; 

                  (v)         the institution by the Company of proceedings to be adjudicated bankrupt
or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings
against it under the Bankruptcy Code (Title 11 of the United States Code), or any other
applicable federal or state law, or the consent by it to, or acquiescence in, the filing of any such
petition or the appointment of a receiver, liquidator, assignee, trustee, or other similar official, of
the Company, or of any substantial part of its property, or the making by it of an assignment for
the benefit of creditors; 

                  (vi)         the expiration of sixty (60) days after the commencement of proceedings
against the Company seeking any bankruptcy, insolvency, liquidation, dissolution or similar
relief under any present or future statute, law or regulation, wherein such action shall not have
been dismissed or all orders or proceedings thereunder affecting the operations or the business of
the Company stayed, or the stay of any such order or proceedings shall thereafter be set aside;

                  (vii)         the expiration of sixty (60) days after the appointment without the consent
or acquiescence of the Company of any trustee, receiver or liquidator of the Company or of all or
any substantial part of the properties of the Company, where such appointment shall not have
been vacated; or

                  (viii)         with respect to any Holder, when the Shares held by such Holder
(including its Permitted Transferees and Affiliates that are parties to this Agreement) in the
aggregate constitute less than five percent (5%) of the total issued and outstanding share capital
of the Company, 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), provided that Sections 20, 25, 26 and
27 shall continue in full force and effect with respect to such Holder, and provided further, that
Section 28 shall continue in full force and effect with respect to such Holder for one (1) year
following termination of this Agreement.

20.    Further Assurances

         Each Holder 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.

21.    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 will 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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22.    Delays or Omissions

         No delay or omission to exercise any right power or remedy accruing to any party under
this Agreement, or upon any breach or default of any other party under this Agreement, will
impair any such right, power or remedy of such non-breaching or non-defaulting party nor will it
be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in
any similar breach or default thereafter occurring; nor will any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or thereafter occurring.
Any waiver, permit, consent or approval of any kind or character on the part of any party of any
provisions or conditions of this Agreement, must be in writing and will be effective only to the
extent specifically set forth in such writing.  All remedies, either under this Agreement or by law
or otherwise afforded to any party, will be cumulative and not alternative.   

23.    Counterparts

         This Agreement may be executed in two or more counterparts, each of which will be
deemed an original, but all of which together shall constitute one and the same instrument.
Executed counterparts to this Agreement may be delivered by facsimile and any such copy shall
be valid for all purposes to the same extent as a manually signed original.  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.

24.    Captions and Headings

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

25.    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.  

26.    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

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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.

27.    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.

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28.  Confidentiality

         28.1  Confidentiality

                  No Investor shall divulge or communicate to any person (other than (i) as required
by law or by any regulatory or governmental authority or (ii) to its, officers, employees or advisors
on a need-to-know basis for the purposes of reporting, evaluating, reviewing or assessing the
performance, acquisition, holding, management, divestment of its interest in the Company or any
other purposes substantially similar therewith) or use or exploit for any purpose whatsoever the trade
secrets, patents, intellectual property, financial information, matters relating to the Company's
business and operations or other confidential and/or proprietary knowledge or information of the
Company which the first-mentioned Investor may receive or obtain as a result of entering into this
Agreement, and each Investor shall use its reasonable endeavors to prevent its officers, employees
or advisors from so doing. This restriction shall apply to each Investor until the later of (i) three years
from the date this Agreement is terminated with respect to such Investor and (ii) three years from the
date such Investor ceases to hold any securities in the Company, but shall not apply to: (a)
information or knowledge which may properly come into the public domain through no fault of the
relevant Investor; or (b) a disclosure for a specific purpose which is approved by resolution of the
Board of Directors prior to such disclosure being made (which approval shall not be unreasonably
withheld).

         28.2  Exceptions

                  Notwithstanding the foregoing, Section 28.1 of this Agreement shall not apply to: (a)
information which an Investor learns from a third party having the right to make the disclosure,
provided the Investor complies with any restrictions imposed by the third party; (b) information
which is in the Investor's possession prior to the time of disclosure by the Company and not acquired
by the Investor under a confidentiality obligation; (c) information which the Investor is required to
disclose by law or a governmental or regulatory authority (which, for the purposes of this Agreement,
shall be deemed to include disclosure by an Investor of the nature of such Investor's investment in
filings and submissions with the SEC and the securities regulatory agencies of other applicable
jurisdictions); or (d) information which the Investor is required to disclose by court order or other
legal process. With respect to a disclosure required by law, any governmental or regulatory authority
or pursuant to a court order or other legal process, prior to making such disclosure, an Investor shall
(i) use all reasonable efforts to limit the scope of such disclosure and to request and pursue
confidential treatment of such disclosure to the extent available and (ii) unless prohibited or
restricted by law, a governmental or regulatory authority or pursuant to a court order or other legal
process, notify the Company of the pending disclosure as soon as practicable so that the Company
may seek appropriate redress.

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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

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	FOUNDER:

	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

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	FOUNDER:

	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

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	FOUNDER:

	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

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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

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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 STOCKHOLDERS 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

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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/ NATHANIEL KRAMER

Name:  Nathaniel Kramer

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/ NATHANIEL KRAMER

Name:   Nathaniel Kramer

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

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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

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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

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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

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SCHEDULE A

SCHEDULE OF INVESTORS

	

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

1.	Mercantile Capital Partners I, L.P. 

2.	Asia Internet Investment Group I, LLC

3.	BAPEF Investments XII Ltd.

4.   Capital International Asia CDPQ Inc.

5.   Quilvest Asian Equity Ltd.

	

3,387

   401

5,094

3,000

   750

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SCHEDULE B

SCHEDULE OF FOUNDERS

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

1.	Phillip Kelly 

2.	John Cantillon

3.	Dennis Smith

	

1,905

2,503

   383

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43END

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