Document:

Exhibit 4.2

August 30, 2002

To:	Holders of Series 2-A Convertible Preferred Stock

RE:	Reduction of Conversion Price

In accordance with the terms of the Certificate of Designation dated November 8, 2000 (the
"Certificate") relating to the Series 2-A Convertible Preferred Stock (the "Series 2-A
Preferred Stock") of Vsource, Inc. (the "Company"), the Company hereby certifies that as of
the date hereof, the Conversion Price of its outstanding Series 2-A Preferred Stock has been
adjusted to $1.63.  As a result, a holder of Series 2-A Preferred Stock will receive 3.94 shares
of the Company's common stock (the "Common Stock") for each share of Series 2-A
Preferred Stock that is converted.  

The foregoing adjustment has been made because, as of August 15, 2002 (the "Effective
Date"), (i) $2,989,196 of principal amount of its Series B-1 exchangeable promissory
notes issued pursuant to an Exchangeable Note and Warrant Purchase Agreement dated
January 28, 2002 between the Company and the Purchasers set forth therein (the "Series
B-1 Agreement"), became convertible into $2,989,196 principal amount of the Company's
Series A Convertible Notes, which notes, in turn and assuming conversion as of the
Effective Date, are now convertible into 29,891,960 shares of Common Stock and (ii)
warrants to purchase 25,000 shares of Common Stock were issued pursuant to the Series
B-1 Agreement, for a total of 30,141,960 Additional Shares of Common Stock.

In accordance with Section 7d(6) of the Certificate, the Conversion Price was adjusted to
$1.63, being the existing Conversion Price of $2.00 multiplied by a fraction, 

	the numerator of which was 125,030,688 being comprised of (A) 34,811,704 shares of
Common Stock outstanding at the close of business on the day next preceding the Effective
Date, plus (B) 1,508,050 shares of Common Stock which the aggregate consideration
received (or deemed to have been received) by the Company for the total number of
Additional Shares of Common Stock so issued would purchase at the then Conversion Price,
plus (C) 88,710,934 shares of Common Stock underlying Other Securities and

	the denominator of which was 153,664,598, being comprised of (X) 64,953,664
shares of Common Stock outstanding at the close of  business on the Effective Date, after
giving effect to the issue of Additional Shares of Common Stock, plus (Y) 88,710,934 of Common Stock underlying the Other Securities at the close of business on
the Effective Date. 

All terms not otherwise defined herein shall have the meaning set forth in the Certificate.

Sincerely,

/S/ Dennis M. Smith

DENNIS M. SMITH, Vice-Chairman, Chief Financial Officer and Chief Strategy OfficerAltair Nanotechnologies Inc.

                          2002 WAGE STOCK PURCHASE PLAN

         1. Purpose of the Plan.  Altair  Nanotechnologies  Inc. (the "Company")
believes that  ownership of its common shares  ("Common  Stock") by employees of
the  Company  and its  subsidiaries  is  desirable  as an  incentive  to  better
performance  and  improvement of profits,  and as a means by which employees may
share in the  rewards  of growth  and  success.  In  addition,  the  Company  is
experience  a  shortage  of  working  capital  and  wants to  periodically  give
employees the opportunity to accept Common Stock in lieu of part of their wages.
The purposes of the Company's 2002 Wage Stock Purchase Plan (the "Plan") are (i)
to  provide  a  convenient  means  by which  employees  of the  Company  and its
subsidiaries may purchase shares of Common Stock through payroll deductions, and
(ii) to permit the  Company  from time to time to reduce  cash  expenditures  by
giving  employees  an  opportunity  to accept  shares of Common Stock in lieu of
salary.  The Plan is not intended to qualify as an employee  stock purchase plan
under Section 423 of the Internal Revenue Code of 1986, as amended (the "Code").

         2.  Administration  of the Plan.  The Plan shall be  administered  by a
committee  ("Committee")  comprised of two or more non-employee directors of the
Company  created  by the  Board of  Directors  of the  Company  (the  "Board  of
Directors");  provided,  however,  at any time there does not exist a  Committee
satisfying the foregoing requirements, the entire Board of Directors shall serve
as the  Committee.  The Board of Directors  may at any time remove any member of
the Committee,  with or without cause, fill vacancies and appoint new members of
the  Committee.  The  Committee  shall have  authority to  promulgate  rules and
regulations  for the operation of the Plan, to adopt forms for use in connection
with the Plan,  to decide any question of  interpretation  of the Plan or rights
arising  thereunder and generally to supervise the  administration  of the Plan.
The  Committee  may consult with  counsel for the Company on any matter  arising
under the Plan.  All  determinations  and  decisions of the  Committee  shall be
conclusive.

         3. Shares Reserved for the Plan. There are 500,000 shares of authorized
but  unissued  Common  Stock  reserved  for  purposes  of the Plan,  subject  to
adjustment  pursuant to Section 16. If the total number of shares subscribed for
and  proposed to be  purchased  on any  Purchase  Date (as defined in Section 5)
would cause the  aggregate  number of shares issued under the plan to exceed the
maximum number of shares reserved under this Section 2, the Committee shall make
a pro rata  allocation of shares  available  under the Plan. The Committee shall
make such allocation of shares among  Participants  (as defined in Section 5) in
as nearly a uniform manner as practicable  and as the Committee  shall determine
to be equitable.

         4. Eligible  Employees.  The term Eligible Employee means any full-time
employee of the Company and each subsidiary  (whether  currently a subsidiary or
becoming a subsidiary in the future) of the Company,  provided that the employee
has been  continuously  employed by either the Company or any  subsidiary of the
Company for at least 1 month. For purposes of the Plan, the term "subsidiary" of
the  Company  has the  meaning  prescribed  in  Section  424(f) of the  Code.  A
"full-time  employee" is any employee of the Company or a subsidiary  excluding,
however, any employee whose customary employment is 20 hours or less per week or
whose  customary  employment  is for not more than five  months in any  calendar
year.  For all purposes of the Plan,  an employee is  considered  to be employed
continuously  during any period not  exceeding 90 days during which the employee
is on sick leave,  military  leave or other bona fide leave of absence  (such as
temporary employment by government).

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         5.       Offering of Stock for Wages under the Plan.

                  (a)  Company's  Initiation  of An Offering.  The Plan shall be
implemented by a series of offerings (each, an "Offering"),  each of which shall
commence and  terminate  when,  as, and if  determined  by the  Committee.  Each
Offering  shall be  preceded  by a written  notice of  offering  (the  "Offering
Notice") sent to all Eligible Employees, which Offering Notice shall specify the
following:

                           (i)      a period (the "Subscription  Period") during
         which the Eligible Employees may elect whether or not to participate in
         the Offering;

                           (ii)     a method,  consistent with Section 6 hereof,
         by which Eligible Employees may notify the Company of their election to
         participate in the Offering;

                           (iii)    the   date   payroll   deductions   for  the
         Offering,  as described in Section 6, shall commence (the "Commencement
         Date"); and

                           (iv) the date payroll  deductions shall terminate and
         the purchase and sale of shares in the  Offering  shall be  consummated
         (the "Purchase Date").

The period  between the  Commencement  Date and the  Purchase  Date shall be the
"Deduction Period."

                  (b)  An  Employee's  Election  to  Participate.   An  Eligible
Employee may elect to participate in an Offering by filing with the Company,  on
or before the expiration of the Subscription  Period, a subscription and payroll
deduction  authorization  in the form  described  in the Offering  Notice.  (Any
Eligible  Employee  who has duly  elected to  participate  in an  Offering  is a
"Participant"  with  respect  to such  Offering).  A  subscription  and  payroll
deduction  authorization  shall apply only to the Offering with respect to which
it is made, and a new subscription and payroll deduction  authorization shall be
necessary for each Offering. The payroll deduction  authorization will authorize
the  employing   corporation  to  make  payroll  deductions  from  each  of  the
Participant's  paychecks during an Offering the Participant is participating in.
Payroll  deductions from any paycheck may not be less than 50% of the employee's
Adjusted Net  Compensation  (as defined below) for the Deduction  Period and may
not be more than the  employee's  Adjusted Net  Compensation  for the  Deduction
Period.

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                  "Compensation"  means  base  salary,   overtime,   bonus,  any
commissions or shift differentials that function as base salary equivalents, and
shall  include  such  amounts  that an  employee  waives  pursuant  to a  salary
reduction arrangement under any cash or deferred or cafeteria plan maintained by
the Company or a subsidiary under Code sections 401(k) or 125.

                  "Adjusted Net  Compensation"  shall mean Compensation less any
amounts the Company is  required  to  withhold on such  Compensation  for income
taxes, FICA, workers compensation and similar programs.

                  (c)  Effect  of  Election  to  Participate.   By  electing  to
participate in an Offering, each Participant shall be deemed to have irrevocably
subscribed under the Plan to purchase,  on the Purchase Date, a number of shares
of Common Stock determined in accordance with Section 7 for the price determined
in  accordance  with Section 6,  exclusively  through  payroll  deductions.  The
failure of an employee to  participate  in any  Offering  shall not prevent such
employee from being eligible to participate in any subsequent Offering.

                   (d) No  Amendment of  Termination.  After a  Participant  has
elected to participate in an Offering, the Participant may not amend the payroll
deduction  authorization  or  terminate  participation  in  the  Offering.  If a
Participant ceases to be an employee of the Company or a parent or subsidiary of
the Company for any reason, including death, disability or retirement, during an
Deduction  Period,  the  Participant's   participation  in  the  Offering  shall
nevertheless  continue and the Participant  shall accept Common Stock in lieu of
Adjusted  Net  Compensation  to the  extent  provided  for in the  Participant's
election and  subscription  documents for all portions of the  Deduction  Period
during  which the  Participant  was an  employee  of the  Company  or one of its
subsidiaries.

         6. Purchase  Price.  The price at which shares shall be purchased in an
Offering  (the  "Purchase  Price")  shall be the fair market value of a share of
Common Stock on the Purchase  Date of the  Offering.  The fair market value of a
share of Common  Stock on any date shall be  determined  as follows:  (i) if the
Common Stock is listed on any national stock exchange or national market system,
including  without  limitation the NASDAQ  National  Market System or the NASDAQ
SmallCap Market System, the closing sales price (or the closing bid, if no sales
were  reported) of the Common Stock as reported by such  exchange or system;  or
(ii) if no reported price under (i) is available, such other value of the Common
Stock as the Board of  Directors  shall  determine  in good faith to be the fair
market value.

         7.  Number of  Shares.  The  number of  shares of Common  Stock  that a
Participant  shall be deemed to have  subscribed  for and shall purchase on each
Purchase Date in each Offering  shall be,  subject to adjustment as provided for
in Section 8, a whole  number of shares  equal to the result of (i) all Adjusted
Net Compensation  withheld from the pay of the Participant during the applicable
Deduction   Period  in  accordance  with  the  Plan  and  the  subscription  and
withholding documents tendered by the Participant,  divided by (ii) the Purchase
Price with respect to such  Offering.  No  fractional  shares shall be purchased
during any Offering.

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         8. Broadly-Based  Adjustment.  In the event that, but for the effect of
this  Section 8, the number of shares of Common Stock that would be purchased by
all of the  Executive  Officers of the Company as a group in any Offering  would
exceed the number of shares of Common Stock to be purchased in that  Offering by
all employees of the Company and any subsidiary that are not Executive Officers,
the  number  of shares of Common  Stock the  Executive  Officers  as a group are
deemed to have subscribed for in that Offering shall be reduced (pro rata, based
upon the number of shares that would have been  purchased)  to a number equal to
one share less than the number of shares of Common  Stock to be purchased by all
employees of the Company and any subsidiary  that are not Executive  Officers in
that Offering. "Executive Officers" shall have the meaning set forth in Rule 405
promulgated  under the Securities Act of 1933, as amended.  Any amounts withheld
from a  Participant's  Compensation  under the Plan after a  Purchase  Date as a
result  of  adjustments  under  this  Section  8 or any  other  section  of this
Agreement shall be repaid to the Participant.

         9.  Delivery and Custody of Shares.  Shares  purchased by  Participants
pursuant to the Plan will be delivered to the  Participant  or any investment or
financial  firm  appointed  by the  Participant  within 5  business  days of the
respective Purchase Date.

         10. Expense of the Plan. The Company will pay all expenses  incident to
operation of the Plan, including costs of record keeping, accounting fees, legal
fees,  commissions and issue or transfer taxes on purchases pursuant to the Plan
and on delivery of shares to a Participant or to a Participant's  appointee. The
Company may, but shall not be required to, pay  expenses,  commissions  or taxes
incurred in connection with sales of shares by a Participant.

         11.  Rights Not  Transferable.  The right to purchase  shares under the
Plan is not transferable or assignable by a Participant except by will or by the
laws of descent and  distribution  of the state or country of the  Participant's
domicile  at the  time of  death,  and  such  right is  exercisable  during  the
Participant's lifetime only by the Participant.

         12. Tax  Withholding.  Each  Participant who has purchased shares under
the Plan shall  immediately upon  notification of the amount due, if any, pay to
the Company in cash amounts necessary to satisfy any applicable  federal,  state
and local tax  withholding  determined  by the  Company to be  required.  If the
Participant  fails to pay the amount  demanded,  the Company may  withhold  that
amount from other amounts payable by the Company to the  Participant,  including
salary, subject to applicable law.

         13.  Responsibility  and Indemnity.  Neither the Company,  its Board of
Directors,  the Committee,  any subsidiary,  nor any member,  officer, agent, or
employee of any of them,  shall be liable to any Participant  under the Plan for
any  mistake of judgment or for any  omission or wrongful  act unless  resulting
from gross  negligence,  willful  misconduct  or  intentional  misfeasance.  The
Company will indemnify and save harmless its Board of Directors,  the Committee,
and any such  member,  officer,  agent or  employee  against  any  claim,  loss,
liability or expense arising out of the Plan, except such as may result from the
gross negligence,  willful misconduct or intentional  misfeasance of such entity
or person.

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         14. Conditions and Approvals.  The obligations of the Company under the
Plan shall be subject to compliance  with all applicable  state and federal laws
and  regulations,  compliance  with the rules of any stock exchange or quotation
service (such as the Nasdaq SmallCap  Market) on which the Company's  securities
may be listed, and approval of such federal and state authorities or agencies as
may have  jurisdiction  over the Plan or the  Company.  The Company will use its
best effort to comply with such laws,  regulations  and rules and to obtain such
approvals.

         15. Amendment of the Plan. The Board of Directors may from time to time
amend the Plan in any and all respects,  except to the extent that any governing
securities  law,  exchange  regulation,  or quotation  service rule prohibits or
restricts such amendment.

         16.  Adjustments Upon Changes in  Capitalization.  The number of shares
reserved  under  Section  2, the  number of shares  that may be  purchased  by a
Participant during an Offering pursuant to Section 7, and the purchase price per
share under Section 6 all shall be proportionately  adjusted for any increase or
decrease in the number of outstanding shares of Common Stock in the event of any
stock dividend,  stock split,  combination of shares,  recapitalization or other
change in the number of the outstanding  shares of Common Stock that is effected
without  receipt of  consideration  by the Company;  provided,  however,  that a
conversion  of any  convertible  security of the Company  shall not be deemed to
have been effected without the receipt of consideration.  Adjustments under this
Section 16 shall be made by the Board of Directors,  whose  determination of the
adjustment shall be conclusive.

         17.  Merger or Sale.  In the event that a sale of all or  substantially
all of the  assets of the  Company,  or the merger of the  Company  with or into
another  corporation is consummated  during any Deduction Period, the respective
Offering shall  automatically be terminated as of the date of such  transaction,
and all amounts  withheld from the  Compensation  of any  Participant as part of
such Offering  shall be paid to such  Participant on the earlier to occur of (a)
the date of the consummation of such transaction, (b) the date such Compensation
would be paid in the  ordinary  course  of  business  but for the  effect of the
Offering.

         18.  Termination of the Plan. The Plan shall terminate upon the earlier
to occur of (a) when all of the shares  reserved  for  purposes of the Plan have
been purchased,  or (b) August 31, 2003, provided that the Board of Directors in
its sole discretion may at any time terminate the Plan without any obligation on
account of such  termination,  except that such termination shall not affect any
shares  which  have  been  subscribed  for  in an  Offering  that  has  not  yet
terminated.

         19.  Effective Date of the Plan. The Plan shall become effective on the
date it is approved by the Board of Directors.

         The undersigned, who is the duly elected Chief Operating Officer of the
Company, hereby certifies that, this Company's 2002 Wage Stock Purchase Plan was
approved by the Board of Directors of the Company and became effective on August
6, 2002.

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                              Altair Nanotechnologies Inc.

                            By: /s/ Edward Dickinson

                                  ----------------------------
                                       Edward Dickinson
                                      Chief Operating Officer

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