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                                                                    EXHIBIT 10.3

                      FORM OF BREAK-UP WARRANT

THIS WARRANT AND THE SHARES OF COMMON STOCK PURCHASABLE HEREUNDER HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES
LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE SOLD OR OFFERED FOR SALE
OR OTHERWISE TRANSFERRED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT AS
TO THE SECURITIES UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR THE
SECURITIES ARE SOLD AND TRANSFERRED IN A TRANSACTION THAT IS EXEMPT FROM OR NOT
SUBJECT TO REGISTRATION UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
THE OFFERING OF THIS SECURITY AND THE SHARES OF COMMON STOCK PURCHASABLE
HEREUNDER HAVE NOT BEEN REVIEWED OR APPROVED BY ANY STATE SECURITIES
ADMINISTRATOR.

                                    DDi CORP.

Date of Initial Issuance: _______________
Number of Shares:         _______________
Initial Warrant Price:    $_____ per share(1)
Expiration Date:          _______________(2)

      THIS CERTIFIES that, for value received, ______________________, or its
registered assigns to the extent permitted hereunder (the "HOLDER"), is entitled
to subscribe for and purchase from DDi CORP., a Delaware corporation (the
"COMPANY"), upon the terms and conditions set forth herein, at any time during
the Term (as defined below) of this Warrant, _______________ shares of common
stock, $0.001 par value per share, of the Company ("COMMON STOCK"), at the
Warrant Price (as defined below), payable as provided herein. As used herein,
the term "this Warrant" shall mean and include this Warrant and any Warrant or
Warrants hereafter issued as a consequence of the exercise or transfer of this
Warrant in whole or in part.

      The number of shares of Common Stock issuable upon the exercise of the
Warrant (the "WARRANT SHARES") and the Warrant Price may be adjusted from time
to time as hereinafter set forth.

      SECTION 1. Definitions.

      For all purposes of this Warrant, the following terms shall have the
meanings indicated:

            "AFFILIATE" of any specified Person means any other Person directly
or indirectly controlling, controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, "control"
when used with respect to any Person means the power

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(1)   The initial warrant price shall be equal to 50% of the Average Share Price
      (as defined in the Standby Securities Purchase Agreement) on the date of
      termination of the Standby Securities Purchase Agreement.

(2)   The term of the warrant shall be one year from the date of issuance.

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to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing. No Person shall be deemed an Affiliate of another Person solely by
virtue of the fact that both Persons own shares of the Company's capital stock.

            "BUSINESS DAY" shall mean any day other than Saturday, Sunday and
any day on which banking institutions in the State of New York are authorized by
Law or other governmental action to close.

            "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended from time to time.

            "PERSON" means an individual, a corporation, partnership, limited
liability company, association, trust or any other entity or organization,
including a government, a political subdivision or an agency or instrumentality
thereof.

            "SECURITIES ACT" shall mean the Securities Act of 1933, as amended
from time to time.

            "TERM OF THIS WARRANT" shall mean the period beginning on the date
of initial issuance hereof and ending on July 31, 2006.

            "TRANSFER" means the offer, sale, donation, assignment (as
collateral or otherwise), mortgage, pledge, grant, hypothecation, encumbrance,
gift, bequest or transfer or disposition of any security.

            "WARRANT PRICE" shall mean $____ per share(3), subject to adjustment
in accordance with Section 5 hereof.

      SECTION 2. EXERCISE OF WARRANT.

            2.1 Procedure for Exercise of Warrant. To exercise this Warrant in
whole or in part (but not as to any fractional share of Common Stock), the
Holder shall deliver to the Company at its office referred to in Section 10
hereof at any time and from time to time during the Term of this Warrant, as
follows:

                  (a) (i) a duly executed Notice of Exercise in the form of
      Exhibit A attached hereto, (ii) cash, a certified or official bank check
      payable to the order of the Company, or a wire transfer of funds to the
      Company's account, in each case in the amount of the Warrant Price for
      each share being purchased and any amount required to be paid by the
      Holder on account of a transfer of a Warrant or Warrant Shares pursuant to
      Section 3 hereof, and (iii) this Warrant; or

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(3)   The initial warrant price shall be equal to 50% of the Average Share Price
      (as defined in the Standby Securities Purchase Agreement) on the date of
      termination of the Standby Securities Purchase Agreement.

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                  (b) by surrender of this Warrant (with the Notice of Cashless
      Exercise attached hereto as Exhibit B duly executed) to the Company at its
      office as set forth in the Notice of Cashless Exercise attached hereto, or
      at such other place as is designated in writing by the Company, in which
      event the Company shall issue to the Holder the number of Warrant Shares
      determined as follows:

                X = Y (A-B)/A

         where:

                X = the number of Warrant Shares to be issued to the Holder.

                Y = the number of Warrant Shares with respect to which this
                Warrant is being exercised (which shall include both the
                number of Warrant Shares issued to the Holder and the number
                of Warrant Shares subject to the portion of the Warrant being
                cancelled in payment of the Warrant Price).

                A = the Fair Market Value (determined pursuant to Section 7)
                as of the exercise date.

                B = the Warrant Price then in effect.

            2.2 In the event of any exercise of the rights represented by this
Warrant, a certificate or certificates for the shares of Common Stock so
purchased, registered in the name of the Holder or, subject to compliance with
Section 6.2, such other name or names as may be designated by the Holder, shall
be delivered to the Holder hereof within a reasonable time, not exceeding three
Business Days, after the rights represented by this Warrant shall have been so
exercised; and, unless this Warrant has expired, a new Warrant representing the
number of shares with respect to which this Warrant shall not then have been
exercised shall also be issued to the Holder hereof within such time. The person
in whose name any certificate for shares of Common Stock is issued upon exercise
of this Warrant shall for all purposes be deemed to have become the holder of
record of such shares on the date on which the Holder shall have complied with
the conditions for exercise of this Warrant set forth above, irrespective of the
date of delivery of such certificate, except that, if the date of such
compliance is a date when the stock transfer books of the Company are closed,
such person shall be deemed to have become the holder of such shares at the
close of business on the next succeeding date on which the stock transfer books
are open. Notwithstanding anything in the foregoing to the contrary, for
purposes of Rule 144 promulgated under the Securities Act, it is intended,
understood and acknowledged that Warrant Shares issued in a cashless exercise
transaction pursuant to Section 2.1(b) above shall be deemed to have been
acquired by the Holder, and the holding period for the Warrant Shares shall be
deemed to have commenced, on the issue date of this Warrant.

            2.3 Transfer Restriction Legend. Each certificate for Warrant Shares
shall bear the following legend (and any additional legend required by (i) any
applicable state securities laws and (ii) any securities exchange upon which
such Warrant Shares may, at the time of such exercise, be listed) on the face
thereof unless at the time of exercise such Warrant Shares shall be registered
under the Securities Act:

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            "The shares represented by this certificate have not been registered
            under the Securities Act of 1933, as amended (the "SECURITIES ACT")
            AND/OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. SUCH SHARES MAY
            NOT be OFFERED OR sold or transferred EXCEPT (A) PURSUANT TO AN
            EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
            REGISTRATION AND/OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES
            LAWS, (B) IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER
            THE SECURITIES ACT AND REGISTRATION AND/OR QUALIFICATION UNDER
            APPLICABLE STATE SECURITIES LAWS PROVIDED THAT AT THE ISSUER'S
            REQUEST, THE TRANSFEROR THEREOF SHALL HAVE DELIVERED TO THE ISSUER
            AN OPINION OF COUNSEL (WHICH OPINION SHALL BE IN FORM, SUBSTANCE AND
            SCOPE REASONABLY SATISFACTORY TO THE ISSUER FROM COUNSEL REASONABLY
            SATISFACTORY TO THE ISSUER) TO THE EFFECT THAT SUCH SECURITIES MAY
            BE SOLD OR TRANSFERRED PURSUANT TO AN EXEMPTION FROM SUCH
            REGISTRATION, OR (C) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE
            144 PROMULGATED UNDER THE SECURITIES ACT."

            Any certificate issued at any time in exchange or substitution for
any certificate bearing such legend shall also bear such legend unless, in the
opinion of counsel for the Holder thereof (which counsel shall be satisfactory
to the Company) the securities represented thereby are not, at such time,
required by law to bear such legend. The foregoing legend shall be removed from
the certificates representing any Warrant Shares, at the request of the Holder
thereof, at such time as they become eligible for resale pursuant to Rule 144(k)
under the Securities Act or as they have been sold pursuant to a registration
statement declared effective by the Securities and Exchange Commission or
pursuant to Rule 144 under the Securities Act. At the request of the Company,
the Company shall have the right to receive an opinion of counsel for the
Holder, reasonably satisfactory to the Company, to the effect that the transfer
of the Warrant Shares is exempt from the registration requirements of the
Securities Act, prior to the removal of the legend if the request for removal is
being made pursuant to Rule 144 or Rule 144(k) under the Securities Act.

      SECTION 3. COVENANTS AS TO COMMON STOCK. The Company shall at all times
reserve and keep available out of its authorized but unissued Common Stock (or
out of shares of Common Stock held in its treasury) solely for the purpose of
issuance upon the exercise of this Warrant, the maximum number of Warrant Shares
issuable upon the exercise of this Warrant. The Company covenants and agrees
that all shares of Common Stock that may be issued upon the exercise of the
rights represented by this Warrant shall, upon issuance, be validly issued,
fully paid and nonassessable, and free from all taxes, liens, preemptive rights
and charges with respect to the issue thereof. The Company shall take all such
actions as may be necessary to

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ensure that all such Warrant Shares may be so issued without violation by the
Company of any applicable law or governmental regulation or any requirements of
any domestic securities exchange or quotation system upon which shares of Common
Stock or other securities constituting Warrant Shares may be listed or quoted
(except for official notice of issuance which shall be immediately delivered by
the Company upon each such issuance). The Company further covenants and agrees
that it shall pay when due and payable any and all federal and state documentary
or stamp taxes (other than federal or state income taxes) which may be payable
in respect of the issue of this Warrant or any Common Stock or certificates
therefor issuable upon the exercise of this Warrant, except that, if Warrant
Shares or new Warrants shall be registered in a name or names other than the
name of the Holder, funds sufficient to pay all transfer taxes payable as a
result of such transfer shall be paid by the Holder at the time of delivery of
the Notice of Exercise.

      SECTION 4. ADJUSTMENT OF NUMBER OF SHARES. Upon each adjustment of the
Warrant Price as provided in Section 5(a), Section 5(b), Section 5(c) or Section
5(f), the number of Warrant Shares shall be changed to the number determined by
multiplying the Warrant Price in effect immediately prior to such adjustment by
the number of Warrant Shares purchasable immediately prior to such adjustment
and dividing the product thereof by the Warrant Price resulting from such
adjustment.

      SECTION 5. ADJUSTMENT. The Warrant Price and the terms of the Warrant
shall be subject to adjustment from time to time as follows:

                  (a) If, at any time during the Term of this Warrant, the
      Company shall make or issue, a dividend or other distribution payable in
      additional shares of Common Stock, then and in each such event the Warrant
      Price then in effect immediately before such event shall be decreased as
      of the time of such issuance by multiplying the Warrant Price then in
      effect by a fraction:

                            (1) the numerator of which shall be the total number
of shares of Common Stock issued and outstanding immediately prior to the time
of such issuance, and

                            (2) the denominator of which shall be the total
number of shares of Common Stock issued and outstanding immediately prior to the
time of such issuance plus the number of shares of Common Stock issuable in
payment of such dividend or distribution.

                  (b) If, at any time during the Term of this Warrant, the
      number of shares of Common Stock outstanding is increased by a subdivision
      or split-up of shares of Common Stock, then, immediately after the date
      fixed for the determination of holders of Common Stock entitled to receive
      shares in such subdivision or split-up, the Warrant Price in effect
      immediately before the subdivision or split-up shall be appropriately
      decreased so that the number of shares of Common Stock issuable upon the
      exercise hereof shall be increased in proportion to such increase in
      outstanding shares.

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            (c) If, at any time during the Term of this Warrant, the number of
   shares of Common Stock outstanding is decreased by a combination of the
   outstanding shares of Common Stock or reverse stock split, then, immediately
   after the effective date for such combination, the Warrant Price in effect
   immediately prior to such combination or reverse stock split shall be
   appropriately increased so that the number of shares of Common Stock issuable
   upon the exercise hereof shall be decreased in proportion to such decrease in
   outstanding shares.

            (d) If, at any time during the Term of this Warrant, the Company
   shall make or issue, or fix a record date for the determination of holders of
   Common Stock entitled to receive, a dividend or other distribution payable in
   securities of the Company (other than shares of Common Stock) or in cash or
   other property (other than dividends or distributions for which an adjustment
   is made pursuant to other provisions of this Section 5 or regular cash
   dividends paid out of earnings or earned surplus, determined in accordance
   with generally accepted accounting principles), then and in each such event
   provision shall be made so that the Holder shall receive upon the exercise
   hereof, in addition to the number of shares of Common Stock issuable
   hereunder, the kind and amount of securities of the Company, cash or other
   property which the Holder would have been entitled to receive had this
   Warrant been exercised on the effective date fixed for the determination of
   holders of Common Stock entitled to receive a dividend or distribution in
   such event and had the Holder thereafter, during the period from such date to
   and including the exercise date, retained any such securities receivable
   during such period, giving application to all adjustments called for during
   such period under this Section 5 with respect to the rights of the Holder.

            (e) In the case of any proposed consolidation or merger of the
   Company with another entity, or the proposed sale of all or substantially all
   of its assets to another person or entity, or any proposed consolidation,
   reorganization, recapitalization, or reclassification of the capital stock of
   the Company or other transaction, then, as a condition of such consolidation,
   merger, sale, consolidation, reorganization, recapitalization,
   reclassification or other transaction, the Company shall give 30 days' prior
   written notice thereof to the Holder hereof and lawful and adequate provision
   shall be made whereby the Holder shall thereafter have the right to receive
   upon the basis and upon the terms and conditions specified herein, in lieu of
   the Warrant Shares immediately theretofore purchasable hereunder, such shares
   of stock, securities, cash or assets as may (by virtue of such consolidation,
   merger, sale, consolidation, reorganization, recapitalization,
   reclassification or other transaction) be issued or payable with respect to
   or in exchange for the number of Warrant Shares purchasable hereunder
   immediately before such consolidation, merger, sale, reorganization,
   recapitalization, reclassification or other transaction. In any such case
   appropriate provision shall be made with respect to the rights and interests
   of the Holder to the end that the provisions hereof shall thereafter be
   applicable as nearly as may be practicable, in relation to any shares of
   stock, securities, cash or assets thereafter deliverable upon the exercise of
   this Warrant. Notwithstanding the foregoing sentences, if (x) there shall
   occur any consolidation, merger, sale, consolidation, reorganization,
   recapitalization or other transaction in which the Common Stock is converted
   into or exchanged for anything other than solely equity securities, and (y)
   the common stock of the acquiring or surviving company (which shall be
   understood to mean the ultimate parent of such company, if such company is
   not publicly traded and its ultimate parent is publicly traded) is publicly
   traded, then, as part of such

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   consolidation, merger, sale, consolidation, reorganization, recapitalization,
   reclassification or other transaction, (i) the Holder shall have the right
   thereafter to receive upon the exercise hereof such number of shares of
   common stock of the acquiring or surviving company as is determined by
   multiplying (A) the number of shares of Common Stock subject to this Warrant
   immediately prior to such consolidation, merger, sale, consolidation,
   reorganization, recapitalization, reclassification or other transaction by
   (B) a fraction, the numerator of which is the Fair Market Value (as defined
   below) per share of Common Stock as of the effective date of such
   consolidation, merger, sale, consolidation, reorganization, recapitalization,
   reclassification or other transaction, as determined pursuant to Section 7,
   and the denominator of which is the fair market value per share of common
   stock of the acquiring or surviving company as of the effective date of such
   transaction, as determined in good faith by the Board of Directors of the
   Company (using the principles set forth in Section 7 to the extent
   applicable), and (ii) the exercise price per share of common stock of the
   acquiring or surviving company shall be the Warrant Price divided by the
   fraction referred to in clause (B) above. The Company shall not effect any
   such consolidation, merger, sale, reorganization, recapitalization,
   reclassification or other transaction unless, prior to the consummation
   thereof, the successor entity (if other than the Company) resulting from such
   consolidation, merger, sale, reorganization, recapitalization,
   reclassification or other transaction (including a purchaser of all or
   substantially all the Company's assets) assumes by written instrument the
   obligation to deliver to each Holder of Warrants such shares of stock,
   securities, cash or assets as, in accordance with the foregoing provisions,
   such Holder may be entitled to acquire upon exercise of Warrants.

            (f) If at any time the Company shall issue or sell any Common Stock
   (other than Common Stock issued (a) pursuant to the Company's existing or
   future stock option plans or pursuant to any other existing or future Common
   Stock related director or employee compensation plan of the Company approved
   by the board of directors of the Company (the "BOARD OF DIRECTORS"), (b) as
   consideration for the acquisition of a business or of assets, (c) to the
   Company's joint venture partners in exchange for interests in the relevant
   joint venture, (d) upon conversion of any shares of any series of preferred
   stock or as the payment of a dividend with respect to any series of preferred
   stock outstanding on the date hereof or the issuance of which caused an
   adjustment under the other provisions of this Section 5 or (e) upon the
   exercise or conversion of any security the issuance of which caused an
   adjustment under the other provisions of this Section 5 for a consideration
   per share less than the Warrant Price then in effect, or shall issue any
   options, rights, warrants or other securities convertible into or exercisable
   or exchangeable for Common Stock (other than such securities paid as
   dividends on any class of preferred stock outstanding on the date hereof or
   the issuance of which caused an adjustment under the other provisions of this
   Section 5) having a conversion, exercise or exchange price, together with the
   issue price of such securities, per share of Common Stock less than the
   Warrant Price then in effect, the Warrant Price to be in effect after such
   issuance or sale shall be determined by multiplying the Warrant Price in
   effect immediately prior to such issuance or sale by a fraction, (i) the
   denominator of which shall be the sum of (w) the number of shares of Common
   Stock outstanding immediately prior to such issuance or sale plus (x) the
   number of additional shares of Common Stock to be issued or sold (or, in the
   case of any options, rights, warrants or other convertible, exercisable or
   exchangeable securities, issued on conversion, exercise or exchange), and
   (ii) the numerator of which shall be the sum of (y) the number of shares of

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   Common Stock outstanding immediately prior to such issuance and sale plus (z)
   the number of shares of Common Stock which the aggregate consideration
   received by the Company for the total number of additional shares of Common
   Stock so issued or sold (or issuable on conversion, exercise or exchange)
   would purchase at the Warrant Price in effect on the date of such issuance or
   sale. In case any portion of the consideration to be received by the Company
   shall be in a form other than cash, the fair market value (determined in
   accordance with the principles set forth in Section 7 to the extent
   applicable) of such non-cash consideration shall be utilized in the foregoing
   computation. Such adjustment shall be made successively whenever any such
   issuance or sale is made, and shall become effective immediately after such
   issuance or sale. If all the Common Stock deliverable upon exercise,
   conversion or exchange of securities convertible into Common Stock have not
   been issued when such securities are no longer outstanding, then the Warrant
   Price shall promptly be readjusted to the Warrant Price which would then be
   in effect had the adjustment upon the issuance of such securities been made
   on the basis of the actual number of Common Stock issued upon conversion,
   exercise or exchange of such securities.

            (g) Whenever the Warrant Price shall be adjusted as provided in this
   Section 5, the Company shall promptly prepare a statement showing the facts
   requiring such adjustment and the Warrant Price and number of Warrant Shares
   that shall be in effect after such adjustment, setting forth in reasonable
   detail and certifying the calculation of such adjustment. The Company shall
   cause a copy of such statement to be sent by mail, first class postage
   prepaid, to each Holder at its, his or her address appearing on the Company's
   records. The Company shall, as promptly as reasonably practicable after the
   written request at any time of the Holder (but in any event not later than 10
   days thereafter), furnish or cause to be furnished to the Holder a
   certificate setting forth (i) the Warrant Price then in effect and (ii) the
   number of shares of Common Stock and the amount, if any, of other securities,
   cash or property which then would be received upon the exercise of this
   Warrant.

            (h) Adjustments made pursuant to this Section 5 shall be made on the
   date such dividend, subdivision, split-up, reverse stock split, combination,
   distribution, issuance, sale, consolidation, reorganization,
   recapitalization, reclassification or other transaction, as the case may be,
   is made, and shall become effective at the close of business on the day such
   event becomes effective.

      SECTION 6. OWNERSHIP.

            6.1 Ownership of Warrant. The Company may deem and treat the person
   in whose name this Warrant is registered as the holder and owner hereof
   (notwithstanding any notations of ownership or writing hereon made by anyone
   other than the Company) for all purposes and shall not be affected by any
   notice to the contrary until presentation of this Warrant for registration of
   transfer as provided in this Section 6.

            6.2 Transfer and Replacement.

            (a) No Holder shall Transfer this Warrant other than (i) a Transfer
   to one or more of its Affiliates or (ii) if the Company first shall have been
   furnished with an opinion of legal counsel, reasonably satisfactory to the
   Company, to the effect that such Transfer is

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   exempt from the registration requirements of the Securities Act.
   Notwithstanding the foregoing, no registration or opinion of counsel shall be
   required for, and a Transfer shall be permitted in the event of, a Transfer
   by a Holder which is a partnership to a partner of such partnership or a
   retired partner of such partnership or to the estate of any such partner or
   retired partner, or a Transfer by a Holder which is a limited liability
   company to a member of such limited liability company or a retired member or
   to the estate of any such member or retired member, provided that the
   transferee in each case agrees in writing to be subject to the terms of this
   Section 6. Any attempt to Transfer this Warrant other than in accordance with
   this Section 6 shall be null and void and no right, title or interest in or
   to such Warrant shall be Transferred to the purported transferee, buyer,
   donee, assignee or encumbrance holder. The Company will not give, and will
   not permit the Company's transfer agent to give, any effect to such attempted
   Transfer in its stock records.

            (b) Subject to Section 6.2(a), this Warrant and all rights hereunder
   are transferable in whole or in part upon the books of the Company by the
   Holder hereof in person or by duly authorized attorney, together with a
   properly executed Assignment (in the form of Exhibit C or Exhibit D hereto,
   as the case may be) and a new Warrant or Warrants, of the same tenor as this
   Warrant but registered in the name of the transferee or transferees (and in
   the name of the Holder, if a partial transfer is effected) shall be promptly
   made and delivered by the Company upon surrender of this Warrant duly
   endorsed, at the office of the Company referred to in Section 9 hereof. Upon
   receipt by the Company of evidence reasonably satisfactory to it of the loss,
   theft or destruction, and, in such case, of indemnity or security reasonably
   satisfactory to it, and upon surrender of this Warrant if mutilated, the
   Company shall promptly make and deliver a new Warrant of like tenor, in lieu
   of this Warrant. This Warrant shall be promptly cancelled by the Company upon
   the surrender hereof in connection with any transfer or replacement. Except
   as otherwise provided above, in the case of the loss, theft or destruction of
   a Warrant, the Company shall pay all expenses, taxes and other charges
   payable in connection with any transfer or replacement of this Warrant, other
   than documentary or stamp taxes (if any) payable in connection with a
   transfer of this Warrant, which shall be payable by the Holder. The Holder
   shall not transfer this Warrant and the rights hereunder except in compliance
   with federal and state securities laws.

      SECTION 7. FRACTIONAL SHARES. Fractional shares shall not be issued upon
the exercise of this Warrant but in any case where the Holder would, except for
the provisions of this Section 7, be entitled under the terms hereof to receive
a fractional share upon the complete exercise of this Warrant, the Company
shall, upon the exercise of this Warrant for the largest number of whole shares
then called for, pay a sum in cash equal to the excess of the Fair Market Value
of such fractional share over the Warrant Price for such fractional share on the
exercise date.

            (a) The Fair Market Value per share of Common Stock shall be
   determined as follows:

                  (i) If the Common Stock is listed on a national securities
exchange, the Nasdaq National Market or another nationally recognized trading
system as of the exercise date, the Fair Market Value per share of Common Stock
shall be deemed to be the

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average of the high and low reported sale prices per share of Common Stock
thereon on the trading day immediately preceding the effective date or the
exercise date, as applicable (provided that if no such price is reported on such
day, the Fair Market Value per share of Common Stock shall be determined
pursuant to clause (ii)).

                  (ii) If the Common Stock is not listed on a national
securities exchange, the Nasdaq National Market or another nationally recognized
trading system as of the effective date or the exercise date, as applicable, the
Fair Market Value per share of Common Stock shall be deemed to be the amount
most recently determined by the Board to represent the fair market value per
share of the Common Stock (including without limitation a determination for
purposes of granting Common Stock options or issuing Common Stock under any
plan, agreement or arrangement with employees of the Company); and, upon request
of the Holder, the Board (or a representative thereof) shall, as promptly as
reasonably practicable but in any event not later than 3 Business Days after
such request, notify the Holder of the Fair Market Value per share of Common
Stock and furnish the Holder with reasonable documentation of the Board's
determination of such Fair Market Value. Notwithstanding the foregoing, if the
Board has not made such a determination within the three-month period prior to
the exercise date, then (A) the Board shall make, and shall provide or cause to
be provided to the Holder notice of, a determination of the Fair Market Value
per share of the Common Stock within 15 days of a request by the Holder that it
do so, and (B) payment in cash with respect to any fractional share as required
by Section 7 hereof shall be delayed until such determination is made and notice
thereof is provided to the Holder (it being understood that this shall not
prevent the Holder, at its option, from exercising the Warrant prior to such
determination).

      SECTION 8. SPECIAL ARRANGEMENTS OF THE COMPANY. The Company covenants and
agrees that during the Term of this Warrant, unless otherwise approved by the
Holder:

            8.1 Certain Actions. The Company shall not amend its charter to
eliminate as an authorized class of capital stock that class denominated as
"Common Stock" on the date hereof. The Company shall not by any action avoid or
seek to avoid the observance or performance of any terms of this Warrant or
impair or diminish its value, but shall at all times in good faith assist in the
carrying out of all such terms of Warrant. Without limiting the generality of
the foregoing, the Company shall obtain all such authorizations, exemptions or
consents from any public regulatory body having jurisdiction thereof as may be
necessary to enable the Company to perform its obligations under this Warrant.

            8.2 Shall Bind Successors. This Warrant and the rights evidenced
hereby shall be binding upon the Company and its successors and assigns and
shall inure to the benefit of the Holder and its permitted assigns to the extent
permitted by Section 6.2.

            8.3 No Exercise Interference; Par Value. Other than in accordance
with Section 6.2, the Company shall not close its books against the transfer of
this Warrant or of any Warrant Shares issued or issuable upon the exercise of
this Warrant in any manner which interferes with the timely exercise of this
Warrant. The Company shall from time to time take all such action as may be
necessary to assure that the par value per share of the unissued Warrant Shares
acquirable upon exercise of this Warrant is at all times equal to or less than
the Warrant Price then in effect.

                                       10
<PAGE>

            8.4 Notices of Certain Actions. The Company shall give written
notice to the Holder in the event (A) the Company closes its books or takes a
record (1) with respect to any dividend or distribution upon the Common Stock,
or for the purpose of entitling or enabling any stockholder to receive any other
right, or (2) with respect to any pro rata subscription offer to holders of
Common Stock, or (B) of any recapitalization, reorganization, reclassification,
consolidation, merger, dissolution, liquidation or sale of all or substantially
all of the Company's assets or other transaction which is effected in such a way
that holders of Common Stock are entitled to receive (either directly or upon
subsequent liquidation) stock, securities, cash or assets with respect to or in
exchange for Common Stock. Such notice shall be sent at least ten days prior to
the record date or effective date for the event specified in such notice.

            SECTION 9. NOTICES. Any notice or other document required or
permitted to be given or delivered to the Holder shall be delivered at, or sent
by certified or registered mail to, the Holder at such address as shall have
been furnished to the Company in writing by the Holder. Any notice or other
document required or permitted to be given or delivered to the Company shall be
delivered at, or sent by certified or registered mail to, the Company at its
address for notices set forth on the signature page hereto or to such other
address as shall have been furnished in writing to the Holder by the Company.
Any notice so addressed and mailed by registered or certified mail shall be
deemed to be given when so mailed. Any notice so addressed and otherwise
delivered shall be deemed to be given when actually received by the addressee.

            SECTION 10. NO RIGHTS AS STOCKHOLDER; LIMITATION OF LIABILITY. This
Warrant shall not entitle the Holder to any of the rights of a stockholder of
the Company (including, without limitation, any preemption rights, voting rights
or rights to dividends) except upon exercise in accordance with the terms
hereof. Notwithstanding the foregoing, in the event (i) the Company effects a
split of the Common Stock by means of a stock dividend and the Warrant Price of
and the number of Warrant Shares are adjusted as of the date of the distribution
of the dividend (rather than as of the record date for such dividend), and (ii)
the Holder exercises this Warrant between the record date and the distribution
date for such stock dividend, the Holder shall be entitled to receive, on the
distribution date, the stock dividend with respect to the shares of Common Stock
acquired upon such exercise, notwithstanding the fact that such shares were not
outstanding as of the close of business on the record date for such stock
dividend. No provision hereof, in the absence of affirmative action by the
Holder to purchase shares of Common Stock, and no mere enumeration herein of the
rights or privileges of the Holder, shall give rise to any liability of the
Holder for the Warrant Price hereunder or as a stockholder of the Company,
whether such liability is asserted by the Company or by creditors of the
Company.

            SECTION 11. GOVERNING LAW. THE VALIDITY, INTERPRETATION, AND
ENFORCEMENT OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO THE CONFLICT OF
LAW PRINCIPLES THEREOF.

            SECTION 12. WARRANT REGISTER. The Company shall maintain at its
principal executive offices books for the registration and the registration of
transfer of Warrants. The Holder may change its address as shown on the warrant
register by written notice to the Company requesting such change.

                                       11
<PAGE>

            SECTION 13. AMENDMENTS. This Warrant and any provision hereof may be
changed, waived, discharged or terminated only by an instrument in writing
signed by the Holder and the Company. The headings in this Warrant are for
purposes of reference only and shall not affect the meaning or construction of
any of the provisions hereof.

                                       12
<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Warrant to be signed by
their duly authorized officers this ________ day of ____________, 2005.

                                                    DDi CORP.

                                                    ____________________________
                                                    Name:
                                                    Title:

                                                    [HOLDER]:

                                                    ____________________________

                                                    ____________________________
                                                    Name:
                                                    Title:

                                                    Address:

                                                    ____________________________

                                                    ____________________________

                                                    ____________________________

                                                    Attention:

                                                    Facsimile:

                                       13
<PAGE>

                                    EXHIBIT A

                           FORM OF NOTICE OF EXERCISE
                [TO BE SIGNED ONLY UPON EXERCISE OF THE WARRANT]
                     TO BE EXECUTED BY THE REGISTERED HOLDER

                        TO EXERCISE THE ATTACHED WARRANT

The undersigned hereby exercises the right to purchase shares of Common Stock
which the undersigned is entitled to purchase by the terms of the attached
Warrant according to the conditions thereof, and herewith makes payment of
$_______________ therefor in cash.

All shares to be issued pursuant hereto shall be issued in the name of, and the
initial address of such person to be entered on the books of DDi CORP. shall be:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

The shares are to be issued in certificates of the following denominations:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

                                            [Type Name of Holder]

                                            By:      ________________
                                            Title:   ________________

Date:    ________________

                                       14
<PAGE>

                                    EXHIBIT B

                       FORM OF NOTICE OF CASHLESS EXERCISE
                [TO BE SIGNED ONLY UPON EXERCISE OF THE WARRANT]
                     TO BE EXECUTED BY THE REGISTERED HOLDER
                        TO EXERCISE THE ATTACHED WARRANT
                           PURSUANT TO SECTION 2.1(b)

            The undersigned hereby irrevocably elects to exchange its Warrant
for ___________ Warrant Shares pursuant to the cashless exercise provisions of
the within Warrant, as provided for in Section 2.1(b) of such Warrant, and
requests that a certificate or certificates for such Warrant Shares be issued in
the name of and delivered to:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________
                    (Print Name, Address and Social Security
                          or Tax Identification Number)

and, if such number of Warrant Shares shall not be all the Warrant Shares which
the undersigned is entitled to purchase in accordance with the within Warrant,
that a new Warrant for the balance of the Warrant Shares covered by the within
Warrant be registered in the name of, and delivered to, the undersigned at the
address stated below.

Dated: ___________________________      Name ___________________________________
                                                             (Print)

Address: _______________________________________________________________________

                                        ________________________________
                                                    (Signature)

                                       15
<PAGE>

                                    EXHIBIT C
                               FORM OF ASSIGNMENT
                                    (ENTIRE)

               [To be signed only upon transfer of entire Warrant]

                     TO BE EXECUTED BY THE REGISTERED HOLDER
                        TO TRANSFER THE ATTACHED WARRANT

FOR VALUE RECEIVED, _______________________________ hereby sells, assigns and
transfers unto _______________________________ all rights of the undersigned
under and pursuant to the attached Warrant, and the undersigned does hereby
irrevocably constitute and appoint _______________________________ Attorney to
transfer said Warrant on the books of DDi CORP., with full power of
substitution.

                                            [Type Name of Holder]

                                            By:    ________________
                                            Title: ________________

Date: ________________

NOTICE:

The signature to the foregoing Assignment must correspond to the name as written
upon the face of the attached Warrant in every particular, without alteration or
enlargement or any change whatsoever.

                                       16
<PAGE>

                                    EXHIBIT D
                               FORM OF ASSIGNMENT
                                    (PARTIAL)

              [To be signed only upon partial transfer of Warrant]

                     TO BE EXECUTED BY THE REGISTERED HOLDER
                        TO TRANSFER THE ATTACHED WARRANT

FOR VALUE RECEIVED, _______________________________ hereby sells, assigns and
transfers unto _______________________________ (i) the rights of the undersigned
to purchase ______________ shares of Common Stock under and pursuant to the
attached Warrant, and (ii) on a non-exclusive basis, all other rights of the
undersigned under and pursuant to the attached Warrant, it being understood that
the undersigned shall retain, severally (and not jointly), with the
transferee(s) named herein, all rights assigned on such non-exclusive basis. The
undersigned does hereby irrevocably constitute and appoint
__________________________ Attorney to transfer said Warrant on the books of DDi
CORP., with full power of substitution.

                                            [Type Name of Holder]

                                            By:    ________________
                                            Title: ________________

Date: ________________

NOTICE:

The signature to the foregoing Assignment must correspond to the name as written
upon the face of the attached Warrant in every particular, without alteration or
enlargement or any change whatsoever.

                                       17<PAGE>

                                                                    EXHIBIT 10.4

================================================================================

                          REGISTRATION RIGHTS AGREEMENT

                                  by and among

                                    DDi CORP.

                                       AND

                          THE HOLDERS SIGNATORY HERETO

                        Dated as of ______________, 2005

================================================================================
<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

      REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of _________,
2005, among those holders of Common Stock signatory hereto (the "HOLDERS") and
DDi CORP., a Delaware corporation (the "COMPANY").

      WHEREAS:

      A. Pursuant to that certain Standby Securities Purchase Agreement, dated
as of __________, 2005 (the "PURCHASE AGREEMENT"), between the Company and the
purchasers signatory thereto, upon the satisfaction of certain conditions, the
Company will issue Rights Offering Common Stock and Standby Commitment Fee
Warrants (as defined below) to the Holders.

      B. Pursuant to the Standby Commitment Fee Warrants, the Company has agreed
to issue to the Holders upon the exercise thereof, shares of the Company's
Common Stock.

      C. In order to induce the Holders to enter into the Purchase Agreement,
the Company has agreed to grant to the Holders as set forth herein certain
registration rights under the Securities Act (as defined below) and applicable
state securities laws with respect to the Rights Offering Common Stock and the
Warrant Common Stock (as defined below).

      NOW, THEREFORE, in consideration of the foregoing, the parties hereto
agree as follows:

1.    DEFINITIONS.

      In addition to the terms defined elsewhere herein and the terms set forth
in the Purchase Agreement that are not otherwise defined herein, which shall
have the same meanings herein as in the Purchase Agreement, the following terms
shall have the following meanings when used herein with initial capital letters:

      "ADVICE" has the meaning set forth in Section 3(b).

      "AFFILIATE" means, with respect to any Person, any other Person that
directly or indirectly controls or is controlled by or is under common control
with such Person. For the purposes of this definition, "control", when used with
respect to any Person, means possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of the such Person,
whether through the ownership of voting securities, by contract or otherwise;
and the terms of "affiliated", "controlling" and "controlled" have meanings
correlative to the foregoing.

      "BLACK SCHOLES WARRANT VALUE" shall mean the value of a warrant as
determined by the Board of Directors as of the date of determination using the
Black-Scholes valuation formula (based upon the advice of an independent
investment bank of national standing selected by the Board of Directors), which
value shall be determined by customary nationally recognized investment banking
practices using such formula. For purposes of calculating such amount, (1) the
term of the warrants will be the time from the date of determination to the
expiration date

<PAGE>

of such warrants, (2) the assumed volatility will be 35%, (3) the assumed
risk-free rate will equal the yield on three month U.S. Treasury securities, and
(4) the price for each share of Common Stock will be (x) the average closing
price of a share of Common Stock for the twenty consecutive trading days
immediately preceding, but not including, the date of determination as reported
on the principal national securities exchange on which the shares of Common
Stock are listed or admitted for trading or (y) if not listed or admitted for
trading on any national securities exchange, the average of the closing bid and
asked prices during such twenty trading day period in the over-the-counter
market as reported by the Nasdaq National Market or any comparable system or (z)
in all other cases, as determined in good faith by the Board of Directors of the
Company, based on the advice of an independent investment bank of national
standing selected by the Board of Directors.

      "BUSINESS DAY" means a day other than a Saturday, Sunday or other day on
which banking institutions in New York, New York are permitted or required by
any applicable law to close.

      "COMMISSION" means the Securities and Exchange Commission.

      "COMMON STOCK" means all of the common stock, par value $0.001 per share,
of the Company.

      "COMPANY" has the meaning set forth in the Preamble and also includes the
Company's successors.

      "DELAY NOTICE" has the meaning set forth in Section 2(e).

      "DELAY PERIOD" has the meaning set forth in Section 2(e).

      "EFFECTIVENESS PERIOD" has the meaning set forth in Section 2(b).

      "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

      "HOLDER" or "HOLDERS" has the meaning set forth in the Preamble or each
Person to whom a Holder Transfers Registrable Securities or Registrable
Liquidated Damages Warrant Securities in accordance with Article V of the
Purchase Agreement. The Holder of a Warrant shall be deemed to be the Holder of
Warrant Common Stock issuable with respect thereto.

      "LIQUIDATED DAMAGES WARRANT" means any warrants issued as liquidated
damages pursuant to the provisions of this Agreement.

      "NASD" means the National Association of Securities Dealers, Inc.

      "PERSON" means a natural person, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization or other entity, or a governmental
entity or any department, agency or political subdivision thereof.

                                       2
<PAGE>

      "PROSPECTUS" shall mean the prospectus included in a Resale Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including a prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities or Registrable Liquidated Damages Warrant Securities
covered by a Resale Registration Statement or a Warrant Resale Registration
Statement, and by all other amendments and supplements to a prospectus,
including post-effective amendments, and, in each case, including all documents
incorporated by reference therein.

      "REGISTRABLE SECURITIES" means (i) the shares of Rights Offering Common
Stock, (ii) the shares of Warrant Common Stock, (iii) to the extent shares of
Common Stock acquired by the Holders in the Rights Offering are not freely
tradeable, any shares of Common Stock acquired by the Holders in the Rights
Offering and (iv) other shares of Common Stock owned by the Holders as of the
date of this Agreement, including any shares of Common Stock or other securities
that may be received by the Holders (x) as a result of a stock dividend, stock
split or other distribution of Common Stock in relation to the Rights Offering
Common Stock or the Warrant Common Stock or (y) on account of Rights Offering
Common Stock or Warrant Common Stock in a recapitalization, reorganization,
consolidation, merger, share exchange or other transaction involving the
Company, in each case upon the respective original issuance thereof, and at all
times subsequent thereto; provided, however, that the foregoing shall cease to
be "Registrable Securities" to the extent that (i) such securities have been
effectively registered under the Securities Act and disposed of in accordance
with the Registration Statement covering them or (ii) such securities are then
saleable by the holder thereof pursuant to Rule 144(k).

      "REGISTRATION STATEMENT" means a Resale Registration Statement or a
Warrant Resale Registration Statement.

      "RESALE REGISTRATION" shall mean a registration effected pursuant to
Section 2(a).

      "RESALE REGISTRATION STATEMENT" shall mean a "resale" registration
statement of the Company pursuant to the provisions of Section 2(a) which covers
the resale of all of the Registrable Securities for an offering to be made on a
continuous basis pursuant to Rule 415 under the Securities Act, on Form S-3 (or
if such form is not available, any other appropriate available form) under the
Securities Act, and all amendments and supplements to such registration
statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all documents
incorporated by reference therein.

      "RIGHTS OFFERING COMMON STOCK" means the Company's Common Stock issued to
the Holders pursuant to the Purchase Agreement.

      "RULE 144" shall mean Rule 144 promulgated under the Securities Act.

      "SECURITIES ACT" means the Securities Act of 1933, as amended.

      "STANDBY COMMITMENT FEE WARRANT" means one of the Common Stock Purchase
Warrants, dated as of __________, 2005, issued pursuant to the terms of the
Purchase Agreement, entitling the Holder thereof to purchase Warrant Common
Stock under the terms and subject to the conditions set forth therein.

                                       3
<PAGE>

      "TRANSFER" means and includes the act of selling, giving, transferring,
creating a trust (voting or otherwise), assigning or otherwise disposing of
(other than pledging, hypothecating or otherwise transferring as security or any
transfer upon any merger or, consolidation) (and correlative words shall have
correlative meanings); provided, however, that any transfer or other disposition
upon foreclosure or other exercise of remedies of a secured creditor after an
event of default under or with respect to a pledge, hypothecation or other
transfer as security shall constitute a Transfer.

      "WARRANTS" means the Standby Commitment Fee Warrants and the Liquidated
Damages Warrants, collectively.

      "WARRANT COMMON STOCK" means the Company's Common Stock issued or issuable
to the Holders upon the exercise of any of the Warrants.

      "WARRANT RESALE REGISTRATION STATEMENT" shall mean a "resale" registration
statement of the Company that is filed pursuant to the provisions of Section
2(c) which covers the resale of all of the Warrant Common Stock issuable upon
the exercise of the Liquidated Damages Warrants for an offering to be made on a
continuous basis pursuant to Rule 415 under the Securities Act, on Form S-3 (or
if such form is not available, any other appropriate available form) under the
Securities Act, and all amendments and supplements to such registration
statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all documents
incorporated by reference therein.

2.    RESALE REGISTRATION.

            (a) Registration Requirement.

                  Subject to the last sentence of this paragraph, the Company
shall prepare promptly and file with the Commission a Resale Registration
Statement meeting the requirements of the Securities Act within five (5)
Business Days following the Closing under the Purchase Agreement, and will use
its best efforts to cause the Resale Registration Statement to be declared
effective by the Commission as soon as practicable thereafter and in any event
not later than sixty (60) days after such filing. The Company's obligations to
file a Resale Registration Statement and to have it declared effective within
the time periods set forth in the first sentence of this Section 2(a) shall be
subject to the Company's right to deliver to the Holders a Delay Notice pursuant
to Section 2(e) hereof.

                  If a Resale Registration Statement is not filed with the
Commission within five (5) Business Days following the Closing under the
Purchase Agreement (subject to any bona fide Delay Period), the Company will pay
to each Holder, as liquidated damages and not as a penalty, an amount equal to
1.0% of the aggregate purchase price for the Unsubscribed Shares paid by such
Holder pursuant to Section 1.3 of the Purchase Agreement for each month or part
thereof that such Resale Registration Statement has not been filed, payable in
monthly installments. If the Resale Registration Statement is not declared
effective by the Commission within 60 days after it is filed with the Commission
(subject to any bona fide Delay Period), the

                                       4
<PAGE>

Company will pay to each Holder, as liquidated damages and not as a penalty, an
amount equal to 1.0% of the aggregate purchase price for the Unsubscribed Shares
paid by such Holder pursuant to Section 1.3 of the Purchase Agreement for each
month or part thereof that such Resale Registration Statement has not been
declared effective, payable in monthly installments. The payment of liquidated
damages pursuant to this paragraph shall be made by the Company, at its option,
either in cash or in Liquidated Damages Warrants having a value (such value to
be determined as set forth below) equal to such liquidated damages. Such
Liquidated Damages Warrants shall contain the same terms as the Standby
Commitment Fee Warrants except that they shall have an exercise period of one
year from the date of actual issuance, and they shall have an exercise price (x)
with respect to the first installment of Liquidated Damages Warrants, equal to
the Average Share Price (as defined in the Purchase Agreement) on the date on
which the Company first becomes obligated to pay the liquidated damages and (y)
with respect to any subsequent installment of Liquidated Damages Warrants, on
the first Business Day of the month period for which such installment is
issuable. The value of such Liquidated Damages Warrants shall be equal to their
Black Scholes Warrant Value. Liquidated damages shall be deemed to commence
accruing on the day on which the event triggering such liquidated damages
occurs. The liquidated damages to be paid to the Holders pursuant to this
Section 2(a) shall cease to accrue (i) with respect to the liquidated damages
for failure to have the Resale Registration Statement filed with the Commission
on or prior to the fifth Business Day following the Closing, on the day that the
Resale Registration Statement has been filed with the Commission or (ii) with
respect to the liquidated damages for failure to have the Resale Registration
Statement declared effective on or prior to the sixtieth (60th) day after it is
filed with the Commission, on the day that the Resale Registration Statement has
been declared effective by the Commission. The parties hereto agree that the
liquidated damages provided for in this Section 2(a) constitute a reasonable
estimate of the damages that will be suffered by the Holders by reason of the
failure of the Resale Registration Statement to be filed and/or to be declared
effective, as the case may be, in accordance with this Agreement.

            (b) Effectiveness Requirement.

                  The Company agrees to use its best efforts to keep the Resale
Registration Statement continuously effective and the Prospectus usable for
resales for a period commencing on the date that such Resale Registration
Statement is initially declared effective by the Commission and terminating on
the date when all of the Registrable Securities covered by such Resale
Registration Statement have been sold pursuant to such Resale Registration
Statement or have ceased to be Registrable Securities (the "EFFECTIVENESS
PERIOD"); provided, however, the Company is permitted to suspend sales of the
Registrable Securities during any Delay Period.

                  After the Resale Registration Statement has been declared
effective by the Commission, if at any time the Resale Registration Statement or
the Prospectus thereunder cannot be used for the resale of the Registrable
Securities for any reason (including without limitation by reason of a stop
order or the Company's failure to update the Resale Registration Statement but
subject to any bona fide Delay Period), then, subject to subsection (e) below,
the Company will pay to each Holder, as liquidated damages and not as a penalty,
an amount equal to 1.0% of the aggregate purchase price for the Unsubscribed
Shares paid by such Holder pursuant to Section 1.3 of the Purchase Agreement for
each month or part thereof that such Resale Registration Statement cannot be
used for the resale of the Registrable Securities, payable

                                       5
<PAGE>

in monthly installments. The payment of liquidated damages pursuant to this
paragraph shall be made by the Company, at its option, either in cash or in
Liquidated Damages Warrants having a value (such value to be determined as set
forth below) equal to such liquidated damages. Such Liquidated Damages Warrants
shall contain the same terms as the Standby Commitment Fee Warrants except that
they shall have an exercise period of one year from the date of actual issuance,
and they shall have an exercise price (x) with respect to the first installment
of Liquidated Damages Warrants, equal to the Average Share Price (as defined in
the Purchase Agreement) on the date on which the Company first becomes obligated
to pay the liquidated damages and (y) with respect to any subsequent installment
of Liquidated Damages Warrants, on the first Business Day of the month period
for which such installment is issuable. The value of such Liquidated Damages
Warrants shall be equal to their Black Scholes Warrant Value. Liquidated damages
shall be deemed to commence accruing on the day on which the event triggering
such liquidated damages occurs. The liquidated damages to be paid to the Holders
pursuant to this Section 2(b) shall cease to accrue on the day the Holders have
received notice from the Company regarding the reinstatement of effectiveness of
the Resale Registration Statement. The parties hereto agree that the liquidated
damages provided for in this Section 2(b) constitute a reasonable estimate of
the damages that will be suffered by the Holders by reason of the failure of the
Resale Registration Statement to remain effective in accordance with this
Agreement.

            (c) Warrant Resale Registration Statement.

                  Subject to the last sentence of this paragraph, if the Company
is not able to register the resale of the Warrant Common Stock issuable upon
exercise of the Liquidated Damages Warrants (the "REGISTRABLE LIQUIDATED DAMAGES
WARRANT SECURITIES") pursuant to the Resale Registration Statement, the Company
shall prepare promptly and file with the Commission a Warrant Resale
Registration Statement meeting the requirements of the Securities Act within ten
(10) Business Days following the issuance of any such Liquidated Damages
Warrants, and will use its best efforts to cause the Warrant Resale Registration
Statement to be declared effective by the Commission as soon as practicable
thereafter and in any event not later than sixty (60) days after such filing.
The Company's obligations to file a Warrant Resale Registration Statement and to
have it declared effective within the time periods set forth in the first
sentence of this Section 2(c) shall be subject to the Company's right to deliver
to the Holders a Delay Notice pursuant to Section 2(e) hereof.

                  If a Warrant Resale Registration Statement is not filed with
the Commission within ten (10) Business Days following the issuance of any such
Liquidated Damages Warrants (subject to any bona fide Delay Period), the Company
will pay to each Holder, as liquidated damages and not as a penalty, an amount
equal to 1.0% of the liquidated damages relating to such Liquidated Damages
Warrants for each month or part thereof that such Warrant Resale Registration
Statement has not been filed, payable in monthly installments. If the Warrant
Resale Registration Statement is not declared effective by the Commission within
60 days after it is filed with the Commission (subject to any bona fide Delay
Period), the Company will pay to each Holder, as liquidated damages and not as a
penalty, an amount equal to 1.0% of the liquidated damages relating to such
Liquidated Damages Warrants for each month or part thereof that such Warrant
Resale Registration Statement has not been declared effective, payable in
monthly installments. The payment of liquidated damages pursuant to this
paragraph shall be

                                       6
<PAGE>

made by the Company, at its option, either in cash or in Liquidated Damages
Warrants having a value (such value to be determined as set forth below) equal
to such liquidated damages. Such Liquidated Damages Warrants shall contain the
same terms as the Standby Commitment Fee Warrants except that they shall have an
exercise period of one year from the date of actual issuance, and they shall
have an exercise price (x) with respect to the first installment of Liquidated
Damages Warrants, equal to the Average Share Price (as defined in the Purchase
Agreement) on the date on which the Company first becomes obligated to pay the
liquidated damages and (y) with respect to any subsequent installment of
Liquidated Damages Warrants, on the first Business Day of the month period for
which such installment is issuable. The value of such Liquidated Damages
Warrants shall be equal to their Black Scholes Warrant Value. Liquidated damages
shall be deemed to commence accruing on the day on which the event triggering
such liquidated damages occurs. The liquidated damages to be paid to the Holders
pursuant to this Section 2(c) shall cease to accrue (i) with respect to the
liquidated damages for failure to have the Warrant Resale Registration Statement
filed with the Commission on or prior to the tenth Business Day following the
Closing, on the day that the Warrant Resale Registration Statement has been
filed with the Commission or (ii) with respect to the liquidated damages for
failure to have the Warrant Resale Registration Statement declared effective on
or prior to the sixtieth (60th) day after it is filed with the Commission, on
the day that the Warrant Resale Registration Statement has been declared
effective by the Commission. The parties hereto agree that the liquidated
damages provided for in this Section 2(c) constitute a reasonable estimate of
the damages that will be suffered by the Holders by reason of the failure of the
Warrant Resale Registration Statement to be filed and/or to be declared
effective, as the case may be, in accordance with this Agreement.

            (d) Warrant Resale Registration Statement Effectiveness Requirement.

                  The Company agrees to use its best efforts to keep the Warrant
Resale Registration Statement continuously effective and the Prospectus usable
for resales for a period commencing on the date that such Warrant Resale
Registration Statement is initially declared effective by the Commission and
terminating on the date when all of the Registrable Liquidated Damages Warrant
Securities covered by such Warrant Resale Registration Statement have been sold
pursuant to such Warrant Resale Registration Statement or have ceased to be
Registrable Liquidated Damages Warrant Securities; provided, however, the
Company is permitted to suspend sales of the Registrable Liquidated Damages
Warrant Securities during any Delay Period.

                  After the Warrant Resale Registration Statement has been
declared effective by the Commission, if at any time the Warrant Resale
Registration Statement or the Prospectus thereunder cannot be used for the
resale of the Registrable Liquidated Damages Warrant Securities for any reason
(including without limitation by reason of a stop order or the Company's failure
to update the Warrant Resale Registration Statement but subject to any bona fide
Delay Period), then, subject to subsection (e) below, the Company will pay to
each Holder, as liquidated damages and not as a penalty, an amount equal to 1.0%
of the liquidated damages relating to the related Liquidated Damages Warrants
for each month or part thereof that such Warrant Resale Registration Statement
cannot be used for the resale of the Registrable Liquidated Damages Warrant
Securities, payable in monthly installments. The payment of liquidated damages
pursuant to this paragraph shall be made by the Company, at its option,

                                       7
<PAGE>

either in cash or in Liquidated Damages Warrants having a value (such value to
be determined as set forth below) equal to such liquidated damages. Such
Liquidated Damages Warrants shall contain the same terms as the Standby
Commitment Fee Warrants except that they shall have an exercise period of one
year from the date of actual issuance, and they shall have an exercise price (x)
with respect to the first installment of Liquidated Damages Warrants, equal to
the Average Share Price (as defined in the Purchase Agreement) on the date on
which the Company first becomes obligated to pay the liquidated damages and (y)
with respect to any subsequent installment of Liquidated Damages Warrants, on
the first Business Day of the month period for which such installment is
issuable. The value of such Liquidated Damages Warrants shall be equal to their
Black Scholes Warrant Value. Liquidated damages shall be deemed to commence
accruing on the day on which the event triggering such liquidated damages
occurs. The liquidated damages to be paid to the Holders pursuant to this
Section 2(d) shall cease to accrue on the day the Holders have received notice
from the Company regarding the reinstatement of effectiveness of the Warrant
Resale Registration Statement. The parties hereto agree that the liquidated
damages provided for in this Section 2(d) constitute a reasonable estimate of
the damages that will be suffered by the Holders by reason of the failure of the
Warrant Resale Registration Statement to remain effective in accordance with
this Agreement.

            (e) Delay Period.

                  The term "DELAY PERIOD" means, with respect to any obligation
to file any Resale Registration Statement or any Warrant Resale Registration
Statement or to keep any Resale Registration Statement, Warrant Resale
Registration Statement or Prospectus usable for resales pursuant to this Section
2, the shortest period of time determined in good faith by the Company's Board
of Directors to be necessary when there exist circumstances relating to a
material pending development, including, but not limited to, a pending or
contemplated material acquisition or merger or other material transaction or
event, which would require additional disclosure by the Company in such Resale
Registration Statement, Warrant Resale Registration Statement or Prospectus of
previously non-public material information which the Company determines in good
faith upon the advice of counsel that it has a bona fide business purpose for
keeping confidential and non-public and the non-disclosure of which in such
Resale Registration Statement, Warrant Resale Registration Statement or
Prospectus might cause such Resale Registration Statement, Warrant Resale
Registration Statement or Prospectus to fail to comply with applicable
disclosure requirements or if the Company becomes ineligible to use the
registration form on which the Resale Registration Statement or Warrant Resale
Registration Statement is filed and declared effective (such circumstances,
"DELAY CIRCUMSTANCES"). A Delay Period shall commence on and include the date
that the Company gives written notice (a "DELAY NOTICE") to the Holders that the
Prospectus is no longer usable as a result of such Delay Circumstances and shall
end on the date when the Holders are advised in writing by the Company that the
current Delay Period has terminated (it being understood that the Company shall
give such notice to all Holders promptly upon making the determination that the
Delay Period has ended). If as a result of the circumstances giving rise to the
Delay Period the Prospectus included in the Resale Registration Statement or the
Warrant Resale Registration Statement has been amended to comply with the
requirements of the Securities Act, the Company shall enclose such revised
Prospectus with the notice to the Holders advising them that the Delay Period
has terminated. Notwithstanding anything herein to the contrary the Company is
only entitled to three (3) Delay Periods having durations of not more than
thirty (30) days each

                                       8
<PAGE>

during any consecutive 12 month period, and not to exceed more than ninety (90)
days in the aggregate in any consecutive 12 month period. A Delay Period may not
commence if a prior Delay Period has terminated within the previous 30 days or
if three Delay Periods have occurred during the consecutive 12 month period
ending on the date that the Company gives notice that a Delay Period has
commenced. The Company covenants and agrees that it will not deliver a Delay
Notice with respect to a Delay Period unless the Company's employees, officers
and directors and their affiliates are also prohibited by the Company for the
duration of the Delay Period from effecting any public sales of shares of Common
Stock beneficially owned by them.

                  If at any time the Company breaches the terms of this Section
2(e) with respect to the number of Delay Periods in any 12 month period or if
the duration of any Delay Period exceeds 30 days, then, the Company will pay to
each Holder, as liquidated damages and not as a penalty, an amount equal to 1.0%
of the aggregate purchase price for the Unsubscribed Shares paid by such Holder
pursuant to Section 1.3 of the Purchase Agreement for each month or part thereof
that the Company is in violation of this Section 2(e), payable in monthly
installments. The payment of liquidated damages pursuant to this paragraph shall
be made by the Company, at its option, either in cash or in Liquidated Damages
Warrants having a value (such value to be determined as set forth below) equal
to such liquidated damages. Such Liquidated Damages Warrants shall contain the
same terms as the Standby Commitment Fee Warrants except that they shall have an
exercise period of one year from the date of actual issuance, and they shall
have an exercise price (x) with respect to the first installment of Liquidated
Damages Warrants, equal to the Average Share Price (as defined in the Purchase
Agreement) on the date on which the Company first becomes obligated to pay the
liquidated damages and (y) with respect to any subsequent installment of
Liquidated Damages Warrants, on the first Business Day of the month period for
which such installment is issuable. The value of such Liquidated Damages
Warrants shall be equal to their Black Scholes Warrant Value. Liquidated damages
shall be deemed to commence accruing on the day on which the event triggering
such liquidated damages occurs. The liquidated damages to be paid to the Holders
pursuant to this Section 2(e) shall cease to accrue on the day such Delay Period
that causes the Company to breach the terms of this Section 2(e) terminates. The
parties hereto agree that the liquidated damages provided for in this Section
2(e) constitute a reasonable estimate of the damages that will be suffered by
the Holders by reason of the breach by the Company of the terms of this Section
2(e).

            (f) Notice.

                  The Company will, in the event a Registration Statement is
declared effective, notify each such Holder as promptly as practicable, and in
any event no later than the next Business Day, when such Registration Statement
has become effective and take such other actions as are required to permit
unrestricted resales of the Registrable Securities or Registrable Liquidated
Damages Warrant Securities, including providing to each Holder a reasonable
number of copies of the Prospectus which is a part of such Registration
Statement as is requested by such Holder. The Company further agrees to
supplement or amend each Registration Statement if and as required by the rules,
regulations or instructions applicable to the registration form used by the
Company for such Registration Statement or by the Securities Act or by any other
rules and regulations thereunder for registrations, and the Company agrees to
notify the Holders of Registrable Securities or Registrable Liquidated Damages
Warrant Securities of any such supplement or amendment promptly after its being
used or filed with the Commission.

                                       9
<PAGE>

3.    REGISTRATION PROCEDURES.

            (a) Obligations of the Company.

                  In connection with its obligations under Section 2 with
respect to the Resale Registration Statement and any Warrant Resale Registration
Statement, the Company shall:

                  (i)   prepare and file with the Commission a Resale
                        Registration Statement or Warrant Resale Registration
                        Statement as prescribed by Sections 2(a) and 2(c),
                        respectively, within the relevant time periods specified
                        in Sections 2(a) and 2(c), respectively, on Form S-3 (or
                        if such form is not available, any other appropriate
                        available form), which form shall (A) be available for
                        the resale of the Registrable Securities or Registrable
                        Liquidated Damages Warrant Securities by the selling
                        Holders thereof and (B) comply as to form in all
                        material respects with the requirements of the
                        applicable form and include all financial statements
                        required by the Commission to be filed therewith; the
                        Company shall use its best efforts to cause such Resale
                        Registration Statement or Warrant Resale Registration
                        Statement to become effective and remain effective and
                        the Prospectus usable for resales in accordance with
                        Section 2, subject to the proviso contained in Section
                        2(b) or Section 2(d), as applicable; provided, however,
                        that, no fewer than five (5) calendar days before filing
                        any Resale Registration Statement, Warrant Resale
                        Registration Statement or Prospectus or any amendments
                        or supplements thereto, the Company shall furnish to and
                        afford the Holders covered by such Resale Registration
                        Statement or Warrant Resale Registration Statement and
                        their counsel a reasonable opportunity to review copies
                        of all such documents (including copies of any documents
                        to be incorporated by reference therein and all exhibits
                        thereto) proposed to be filed and will cause its
                        officers and directors, counsel and independent
                        registered public accountants to respond to such
                        inquiries as shall be necessary, in the reasonable
                        opinion of respective counsel to conduct a reasonable
                        investigation within the meaning of the Securities Act;
                        and the Company shall not file any Resale Registration
                        Statement, Warrant Resale Registration Statement or
                        Prospectus or any amendments or supplements thereto in
                        respect of which the Holders must be afforded an
                        opportunity to review prior to the filing of such
                        document, other than filings required under the Exchange
                        Act, if the Holders or their counsel shall reasonably
                        object in a timely manner; and provided further,
                        however, the plan of distribution disclosed in the
                        Resale Registration Statement or the Warrant Resale
                        Registration Statement shall be in the form attached
                        hereto as Exhibit B, with such changes as the Holders
                        may reasonably request;

                  (ii)  prepare and file with the Commission such amendments
                        (including post effective amendments) to any
                        Registration Statement as may be necessary to keep such
                        Registration Statement effective for the Effectiveness
                        Period, subject to the proviso contained in Section 2(b)
                        or Section 2(d), as the case

                                       10
<PAGE>

                        may be, or as reasonably requested by the Holders of a
                        majority of Registrable Securities or Registrable
                        Liquidated Damages Warrants Securities, as the case may
                        be, and cause each Prospectus to be supplemented, if so
                        determined by the Company or requested by the
                        Commission, by any required prospectus supplement and as
                        so supplemented to be filed pursuant to Rule 424 (or any
                        similar provision then in force), under the Securities
                        Act; respond as promptly as reasonably possible to any
                        comments received from the Commission with respect to
                        such Registration Statement, or any amendment,
                        post-effective amendment or supplement relating thereto;
                        and as promptly as reasonably possible, upon request,
                        provide the Holders true and complete copies of all
                        correspondence from and to the Commission relating to
                        such Registration Statement; and comply in all material
                        respects with the provisions of the Securities Act, the
                        Exchange Act and the rules and regulations promulgated
                        thereunder applicable to it with respect to the
                        disposition of all Registrable Securities or Registrable
                        Liquidated Damages Warrant Securities covered by such
                        Registration Statement during the Effectiveness Period
                        in accordance with the intended method or methods of
                        distribution by the selling Holders thereof described in
                        this Agreement;

                  (iii) register or qualify the Registrable Securities or
                        Registrable Liquidated Damages Warrant Securities under
                        all applicable state securities or "blue sky" laws of
                        such jurisdictions as any Holder shall reasonably
                        request in writing, keep each such registration or
                        qualification effective during the Effectiveness Period
                        and do any and all other acts and things which may be
                        reasonably necessary or advisable to enable such Holder
                        to consummate the disposition in each such jurisdiction
                        of such Registrable Securities or Registrable Liquidated
                        Damages Warrant Securities owned by such Holder;
                        provided, however, that the Company shall not be
                        required to (A) qualify as a foreign corporation or as a
                        dealer in securities in any jurisdiction where it would
                        not otherwise be required to qualify but for this
                        Section 3(a)(iii), (B) file any general consent to
                        service of process in any jurisdiction where it would
                        not otherwise be subject to such service of process or
                        (C) subject itself to any material taxation in any such
                        jurisdiction if it is not then so subject;

                  (iv)  promptly (and, in the case of (G) below, not less than
                        five (5) calendar days prior to such filing) notify each
                        Holder and promptly confirm such notice in writing, if
                        such notice was verbally given, (A) when the
                        Registration Statement covering such Registrable
                        Securities or Registrable Liquidated Damages Warrant
                        Securities has become effective and when any post
                        effective amendments thereto become effective, (B) of
                        the receipt of any comments from the Commission with
                        respect to any such document or a document incorporated
                        by reference therein, (C) of any request by the
                        Commission or any other federal or state securities
                        authority for amendments or supplements to such
                        Registration Statement or Prospectus or for additional
                        information after such Registration Statement has become

                                       11
<PAGE>

                        effective, (D) of the issuance or threatened issuance by
                        the Commission or any state securities authority of any
                        stop order suspending the effectiveness of such
                        Registration Statement or the qualification of the
                        Registrable Securities or Registrable Liquidated Damages
                        Warrant Securities in any jurisdiction described in
                        Section 3(a)(iii) or the initiation of any proceedings
                        for that purpose, (E) of the receipt by the Company of
                        any notification with respect to the suspension of the
                        qualification or exemption from qualification of any of
                        the Registrable Securities or Registrable Liquidated
                        Damages Warrant Securities for sale in any jurisdiction
                        or the initiation or threatening of any proceeding for
                        such purpose, (F) of the happening of any event or the
                        failure of any event to occur or the discovery of any
                        facts, during the Effectiveness Period, which makes any
                        statement made in such Registration Statement or the
                        related Prospectus untrue in any material respect or
                        which causes such Registration Statement or Prospectus
                        to omit to state a material fact necessary in order to
                        make the statements therein, in the light of the
                        circumstances under which they were made, not misleading
                        and (G) when a Prospectus or Prospectus Supplement or
                        post-effective amendment to such Registration Statement
                        is proposed to be filed;

                  (v)   use its best efforts to prevent the entry of any stop
                        order or other suspension of effectiveness of any
                        Registration Statement, or if entered, to obtain the
                        withdrawal of any such stop order or to avoid the
                        issuance of, or, if issued, obtain the withdrawal of any
                        suspension of the qualification (or exemption from
                        qualification) of any of the Registrable Securities or
                        Registrable Liquidated Damages Warrant Securities for
                        sale in any jurisdiction at the earliest possible
                        moment;

                  (vi)  furnish to each Holder, without charge, one conformed
                        copy of the Registration Statement and any
                        post-effective amendment thereto (without documents
                        incorporated therein by reference or exhibits thereto,
                        unless requested) promptly after the filing of such
                        documents with the Commission, and additional conformed
                        copies of such Registration Statement as such Holder may
                        reasonably request;

                  (vii) promptly deliver to each selling Holder, without charge,
                        as many copies of the applicable Prospectus (including
                        each preliminary Prospectus) as such Holder from time to
                        time may reasonably request (it being understood that
                        the Company consents to the use of the Prospectus by
                        each of the selling Holders in connection with the
                        offering and sale of the Registrable Securities or the
                        Registrable Liquidated Damages Warrant Securities
                        covered by the Prospectus), such other documents
                        incorporated by reference therein and any exhibits
                        thereto as such selling Holder from time to time may
                        reasonably request in order to facilitate the
                        disposition of the Registrable Securities or Registrable
                        Liquidated Damages Warrant Securities by such Holder;

                                       12
<PAGE>

                  (viii) as soon as practicable after the resolution of any
                         matter or event specified in Sections 3(a)(iv)(B),
                         3(a)(iv)(C), 3(a)(iv)(E) and 3(a)(iv)(F) (subject to
                         the proviso contained in Section 2(b)), prepare and
                         file with the Commission a supplement or post-effective
                         amendment to the applicable Registration Statement or
                         the related Prospectus or any document incorporated
                         therein by reference or file any other required
                         document, and provide revised or supplemented
                         Prospectuses to the Holders so that, as thereafter
                         delivered to the purchasers of the Registrable
                         Securities or Registrable Liquidated Damages Warrant
                         Securities, such Prospectus will not include any untrue
                         statement of a material fact or omit to state a
                         material fact necessary in order to make the statements
                         therein, in the light of the circumstances under which
                         they were made, not misleading;

                  (ix)   a reasonable time prior to the filing of any document
                         which is to be incorporated by reference into a
                         Registration Statement or a Prospectus after the
                         initial filing of such Registration Statement, provide
                         a reasonable number of copies of such document to the
                         Holders as shall be reasonably requested by the
                         Holders, if any;

                  (x)    cooperate with each seller of Registrable Securities or
                         Registrable Liquidated Damages Warrant Securities
                         covered by a Registration Statement and its counsel in
                         connection with any filings required to be made with
                         the NASD;

                  (xi)   take all other steps reasonably necessary to effect the
                         registration of the Registrable Securities or
                         Registrable Liquidated Damages Warrant Securities
                         covered by a Registration Statement contemplated
                         hereby;

                  (xii)  use its best efforts to cause all Registrable
                         Securities or Registrable Liquidated Damages Warrant
                         Securities registered pursuant to this Agreement to be
                         listed on each securities exchange, interdealer
                         quotation system or other market on which similar
                         securities issued by the Company are then listed;

                  (xiii) cooperate with the Holders to facilitate the timely
                         preparation and delivery of certificates representing
                         Registrable Securities or Registrable Liquidated
                         Damages Warrant Securities to be delivered to a
                         transferee pursuant to the Registration Statement,
                         which certificates shall be free, to the extent
                         permitted by the Purchase Agreement, of all restrictive
                         legends, and to enable such Registrable Securities or
                         Registrable Liquidated Damages Warrant Securities to be
                         in such denominations and registered in such names as
                         any such Holders may request;

                  (xiv)  from and after the date of this Agreement, the Company
                         shall not, and shall not agree to, allow the holders of
                         any securities of the Company to include any of their
                         securities that are not Registrable Securities or
                         Registrable Liquidated Damages Warrant Securities in
                         the Registration

                                       13
<PAGE>

                        Statement under Section 2(a) or Section 2(c) hereof or
                        any amendment or supplement thereto without the consent
                        of the holders of a majority in interest of the
                        Registrable Securities or Registrable Liquidated Damages
                        Warrant Securities, as the case may be; and

                  (xv)  notwithstanding any other provision of this Section
                        3(a), if the Company becomes ineligible to use the
                        registration form on which the Registration Statement is
                        filed and declared effective pursuant to Section 2(a) or
                        Section 2(c), thereby precluding any Holder from using
                        the related Prospectus, the Company shall use its best
                        efforts to prepare and file either a post effective
                        amendment to the Registration Statement to convert such
                        registration statement to, or a new Registration
                        Statement on, another registration form which the
                        Company is eligible to use within thirty (30) days after
                        the date that the Company becomes ineligible, provided
                        such other registration form shall be available for the
                        sale of the Registrable Securities or Registrable
                        Liquidated Damages Warrant Securities by the selling
                        Holders thereof and such amended or new Registration
                        Statement shall remain subject in all respects to the
                        provisions of this Section 3(a).

            (b) Holders' Obligations.

                  (i)   Each Holder agrees that, upon receipt of any notice from
                        the Company of the occurrence of any event specified in
                        Sections 3(a)(iv)(B), 3(a)(iv)(C), 3(a)(iv)(E),
                        3(a)(iv)(F) or any Delay Notice, such Holder will
                        forthwith discontinue disposition of Registrable
                        Securities or Registrable Liquidated Damages Warrant
                        Securities pursuant to the Registration Statement at
                        issue until such Holder's receipt of the copies of the
                        supplemented or amended Prospectus contemplated by
                        Section 3(a)(viii) or until it is advised in writing
                        (the "ADVICE") by the Company that the use of the
                        applicable Prospectus may be resumed, and, if so
                        directed by the Company, such Holder will deliver to the
                        Company (at the Company's expense) all copies in such
                        Holder's possession, other than permanent file copies
                        then in such Holder's possession, of the Prospectus
                        covering such Registrable Securities or Registrable
                        Liquidated Damages Warrant Securities current at the
                        time of receipt of such notice.

                  (ii)  Each Holder agrees that the Company may require each
                        seller of Registrable Securities or Registrable
                        Liquidated Damages Warrant Securities as to which any
                        registration is being effected to furnish to it such
                        information regarding such seller as may be required by
                        the staff of the Commission to be included in the
                        applicable Registration Statement, the Company may
                        exclude from such registration the Registrable
                        Securities or Registrable Liquidated Damages Warrant
                        Securities of any seller who fails to furnish such
                        information which is not otherwise readily available to
                        the Company within ten (10) Business Days after
                        receiving such request, and the Company shall have no
                        obligation to register under the Securities Act the
                        Registrable Securities or Registrable Liquidated

                                       14
<PAGE>

                        Damages Warrant Securities of a seller who so fails to
                        furnish such information; provided that upon being
                        furnished with such information by a Holder, including
                        by any permitted transferee of Registrable Securities or
                        Registrable Liquidated Damages Warrant Securities,
                        whether before or after the Registration Statement is
                        declared effective, the Company shall as promptly as
                        reasonably practicable file a post-effective amendment
                        to the Registration Statement, or a supplement to the
                        Prospectus, for purposes of including such Holder as a
                        selling Holder under the Registration Statement.

4.    REGISTRATION EXPENSES.

      All Registration Expenses will be borne by the Company whether or not the
Registration Statement becomes effective. "REGISTRATION EXPENSES" means all fees
and expenses incident to the performance of, or compliance with, this Agreement
by the Company, including, without limitation, (i) all registration and filing
fees (including, without limitation, fees and expenses of compliance with
securities or "blue sky" laws (including, without limitation, fees and
disbursements of counsel for the selling Holders in connection with "blue sky"
qualifications of the Registrable Securities or Registrable Liquidated Damages
Warrant Securities and determination of the eligibility of the Registrable
Securities or Registrable Liquidated Damages Warrant Securities for investment
under the laws of such jurisdictions as the Holders of a majority of the
Registrable Securities or Registrable Liquidated Damages Warrant Securities
being sold may designate)), (ii) printing expenses (including, without
limitation, expenses of printing certificates for Registrable Securities or
Registrable Liquidated Damages Warrant Securities in a form eligible for deposit
with The Depository Trust Company and of printing Prospectuses if the printing
of Prospectuses is requested by the Holders of a majority of the Registrable
Securities or Registrable Liquidated Damages Warrant Securities included in any
Registration Statement), (iii) fees and disbursements of counsel for the Company
and one single special counsel for the Holders, (iv) all fees and expenses of
listing the Registrable Securities or Registrable Liquidated Damages Warrant
Securities pursuant to Section 3(a)(xii), and (v) fees and expenses of all other
Persons retained by the Company in connection with this Agreement; provided,
however, that Registration Expenses shall not include fees and expenses of any
counsel for the Holders except as provided in clause (iii) above and any local
counsel that are not included in the definition of Registration Expenses nor
shall it include underwriting fees, discounts or commissions relating to the
offer and sale of Registrable Securities or Registrable Liquidated Damages
Warrant Securities, which shall be borne by the Holders included in such
registration pro rata in proportion to the number of Registrable Securities or
Registrable Liquidated Damages Warrant Securities of such Holder included in
such registration. In addition, the Company will pay its internal expenses
(including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expense of any annual
audit, the fees and expenses incurred in connection with the listing of the
securities to be registered on any securities exchange on which similar
securities issued by the Company are then listed and the fees and expenses of
any Person, including special experts, retained by the Company.

                                       15
<PAGE>

5.    INDEMNIFICATION.

            (a) Indemnification by the Company.

                  The Company will indemnify and hold harmless, to the fullest
extent permitted by law, each Holder whose Registrable Securities or Registrable
Liquidated Damages Warrant Securities are registered pursuant to this Agreement,
the officers, directors, agents, members, partners, limited partners and
employees of each of them, each Person who controls such Holder (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
and the officers, directors, agents, members, partners, limited partners and
employees of any such controlling Person, from and against any and all losses,
claims, damages, liabilities, costs (including, without limitation, the costs of
investigation and attorneys' fees) and expenses (collectively, "LOSSES"), as
incurred, arising out of or based upon any untrue or alleged untrue statement of
a material fact contained in any Registration Statement, preliminary Prospectus
or Prospectus or in any amendment or supplement thereto, or arising out of or
based upon any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, except insofar as the same are based upon information furnished in
writing to the Company by such Holder expressly for use therein; provided,
however, that the Company will not be liable to any Holder to the extent that
any such Losses arise out of or are based upon an untrue statement or alleged
untrue statement or omission or alleged omission made in any preliminary
Prospectus if either (A) (i) after receiving copies thereof from the Company,
such Holder failed to send or deliver a copy of the Prospectus with or prior to
the delivery of written confirmation of the sale by such Holder to the Person
asserting the claim from which such Losses arise and (ii) the Prospectus would
have corrected in all material respects such untrue statement or alleged untrue
statement or such omission or alleged omission; or (B) such untrue statement or
alleged untrue statement, omission or alleged omission is corrected in all
material respects in an amendment or supplement to the Prospectus previously
furnished by or on behalf of the Company with copies of the Prospectus as so
amended or supplemented, and, after receiving copies thereof from the Company,
such Holder thereafter fails to deliver such Prospectus as so amended or
supplemented prior to or concurrently with the sale of a Registrable Security or
Registrable Liquidated Damages Warrant Security to the Person asserting the
claim from which such Losses arise. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of any Holder or
any officer, director, agent or employee of such Holder.

            (b) Indemnification by Holders of Registrable Securities or
      Registrable Liquidated Damages Warrant Securities.

                  In connection with any Registration Statement in which a
Holder is participating, such Holder will furnish to the Company in writing such
information concerning the Holder as the Company reasonably requests concerning
such Holder for use in connection with any Registration Statement or Prospectus
and will severally and not jointly indemnify, to the fullest extent permitted by
law, the Company, its directors and officers, agents and employees, each Person
who controls the Company (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, agents or
employees of such controlling Persons, from and against any and all Losses
arising out of or based upon (i) any disposition of Registrable Securities or
Registrable Liquidated Damages Warrant Securities after

                                       16
<PAGE>

receiving notice of a Delay Period and prior to receiving Advice under Section
3(b)(i) that use of the Prospectus may be resumed or (ii) any untrue statement
of a material fact contained in any Registration Statement, Prospectus or
preliminary Prospectus or arising out of or based upon any omission of a
material fact required to be stated therein or necessary to make the statements
therein not misleading, to the extent, but only to the extent, that such untrue
statement or omission is finally judicially determined by a court of competent
jurisdiction to have been contained in any information so furnished in writing
by such Holder to the Company expressly for use in such Registration Statement
or Prospectus and to have been relied upon by the Company in the preparation of
such Registration Statement, Prospectus or preliminary Prospectus. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Company or any officer, director, agent or employee
of the Company. In no event will the liability of any selling Holder under this
Section 5(b) be greater in amount than the excess of the amount by which the
total price at which the Registrable Securities or Registrable Liquidated
Damages Warrant Securities sold by such Indemnifying Party and distributed to
the public pursuant to the applicable Registration Statement (net of all related
expenses) is over the amount of any damages which such Indemnifying Party has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission.

            (c) Conduct of Indemnification Proceedings.

                  If any Person shall become entitled to indemnity hereunder (an
"INDEMNIFIED PARTY"), such Indemnified Party shall give prompt notice to the
party from which such indemnity is sought (the "INDEMNIFYING PARTY") of any
claim or of the commencement of any action or proceeding with respect to which
such Indemnified Party seeks indemnification or contribution pursuant hereto;
and the Indemnifying Party shall have the right to assume the defense thereof,
including the employment of counsel reasonably satisfactory to the Indemnified
Party and the payment of all fees and expenses incurred in connection with
defense thereof; provided, however, that the failure to so notify the
Indemnifying Party will not relieve the Indemnifying Party from any obligation
or liability except to the extent that it shall be finally determined by a court
of competent jurisdiction that the Indemnifying Party has been prejudiced
materially by such failure.

                  An Indemnified Party shall have the right to employ separate
counsel in any such proceeding and to participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such
Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in
writing to pay such fees and expenses; (2) the Indemnifying Party shall have
failed promptly to assume the defense of such proceeding and to employ counsel
reasonably satisfactory to the Indemnified Party in any such proceeding; or (3)
the named parties to any such proceeding (including any impleaded parties)
include both such Indemnified Party and the Indemnifying Party, and such
Indemnified Party shall have been advised by counsel that a conflict of interest
is likely to exist if the same counsel were to represent such Indemnified Party
and the Indemnifying Party (in which case, if such Indemnified Party notifies
the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense thereof and the reasonable fees and expenses of one
separate counsel (and one local counsel in each applicable jurisdiction) shall
be at the expense of the Indemnifying Party).

                                       17
<PAGE>

                  All Losses (including any fees and expenses incurred in
connection with investigating or preparing to defend such action or proceeding)
will be paid to the Indemnified Party, as incurred, within ten (10) Business
Days of written notice thereof to the Indemnifying Party upon receipt of an
undertaking to repay such amount if it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder. The Indemnifying
Party will not consent to entry of any judgment or enter into any settlement or
otherwise seek to terminate any action or proceeding in which any Indemnified
Party is or could be a party and as to which indemnification or contribution
could be sought by such Indemnified Party under this Section 5, unless such
judgment, settlement or other termination includes, as an unconditional term
thereof, the giving by the claimant or plaintiff to such Indemnified Party of a
release, in form and substance reasonably satisfactory to the Indemnified Party,
from all liability in respect of such claim or litigation for which such
Indemnified Party would be entitled to indemnification hereunder and shall not
include a statement as to the admission of fault or culpability of the
Indemnified Party.

            (d) Contribution.

                  If the indemnification provided for in this Section 5 is
unavailable to an Indemnified Party under Section 5(a) or 5(b) hereof in respect
of any Losses or is insufficient to hold such Indemnified Party harmless, then
each applicable Indemnifying Party, in lieu of or in addition to indemnifying
such Indemnified Party, as applicable, will, jointly and severally, contribute
to the amount paid or payable by such Indemnified Party as a result of such
Losses, in such proportion as is appropriate to reflect the relative fault of
the Indemnifying Party or Indemnifying Parties, on the one hand, and such
Indemnified Party, on the other hand, in connection with the actions, statements
or omissions that resulted in such Losses as well as any other relevant
equitable considerations. The relative fault of such Indemnifying Party or
Indemnifying Parties, on the one hand, and such Indemnified Party, on the other
hand, will be determined by reference to, among other things, whether any action
in question, including any untrue or alleged untrue statement of a material fact
or omission or alleged omission of a material fact, has been taken or made by,
or related to information supplied by, such Indemnifying Party or Indemnified
Party, and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such action, statement or omission. The amount
paid or payable by a party as a result of any Losses will be deemed to include,
subject to any limitations set forth in Section 5(c), any reasonable legal or
other fees or expenses incurred by such party in connection with any action or
proceeding to the extent such party would have been indemnified for such fees
and expenses if the indemnification provided for in this Section 5(d) was
available to such party in accordance with its terms.

                  The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 5(d) were determined by pro
rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this Section 5(d), an Indemnifying
Party that is a selling Holder will not be required to contribute any amount in
excess of the amount by which the total price at which the Registrable
Securities or Registrable Liquidated Damages Warrant Securities sold by such
Indemnifying Party and distributed to the public pursuant to the applicable
Registration Statement (net of all related expenses) exceeds the amount of any
damages which such Indemnifying Party has otherwise been required to pay by

                                       18
<PAGE>

reason of such untrue or alleged untrue statement or omission or alleged
omission. No Person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) will be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation.

                  The indemnity, contribution and expense reimbursement
obligations of a party hereunder will be in addition to any liability such party
may otherwise have hereunder or otherwise.

6.    MISCELLANEOUS.

            (a) Reporting.

                  With a view to making available to the Holders the benefits of
Rule 144 or any other similar rule or regulation of the Commission that may at
the time permit the Holders to sell securities of the Company to the public
without registration, for so long as the Holders continue to own Registrable
Securities or Registrable Liquidated Damages Warrant Securities, the Company
shall use commercially reasonable efforts to:

                  (i)   Make and keep public information available, as those
                        terms are understood and defined in Rule 144, and file
                        with the Commission in a timely manner all reports and
                        other documents required of the Company under the
                        Securities Act and the Exchange Act; and

                  (ii)  Furnish to each Holder, for so long as the Holder owns
                        Registrable Securities or Registrable Liquidated Damages
                        Warrant Securities, promptly upon request, a written
                        statement by the Company, if true, that it has complied
                        with the applicable reporting requirements of Rule 144,
                        the Securities Act and the Exchange Act, a copy of the
                        most recent annual or quarterly report of the Company,
                        and such other information as may be reasonably
                        requested to permit the Holders to sell such securities
                        pursuant to Rule 144 without registration.

            (b) Remedies.

                  In the event of a breach by the Company of its obligations
under this Agreement, each Holder, in addition to being entitled to exercise all
rights granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Agreement. The Company agrees that
monetary damages would not be adequate compensation for any loss incurred by
reason of a breach by it of any of the provisions of this Agreement and hereby
further agrees that, in the event of any action for specific performance in
respect of such breach, it will waive the defense that a remedy at law would be
adequate.

            (c) Amendments and Waivers.

                  (i)   The provisions of this Agreement may not be amended,
                        modified or supplemented, and waivers or consents to
                        departures from the provisions hereof may not be given
                        unless the Company has obtained the written

                                       19
<PAGE>

                        consent of Holders of at least 75% of the
                        then-outstanding Registrable Securities and Registrable
                        Liquidated Damages Warrant Securities.

                  (ii)  Any amendment or waiver effected in accordance with this
                        Section 6(c) shall be binding upon each holder of
                        Registrable Securities or Registrable Liquidated Damages
                        Warrant Securities at the time outstanding, each future
                        Holder of all such securities, and the Company.

                  (iii) No failure or delay by any party in exercising any
                        right, power or privilege hereunder will operate as a
                        waiver thereof, nor will any single or partial exercise
                        thereof preclude any other or further exercise thereof
                        or the exercise of any other right, power or privilege.
                        The rights and remedies herein provided will be
                        cumulative and not exclusive of any rights or remedies
                        provided by law.

            (d) Notices.

                  All notices, requests and other communications to either party
hereunder must be in writing (including telecopy or similar writing) and must be
given:

                  (i)   if to a Holder, to the address set forth opposite such
                        Holder's name on the signature pages hereto, with a copy
                        to such additional party as indicated on such page.

                  (ii)  If to the Company, to:

                        DDi Corp.
                        1220 Simon Circle
                        Anaheim, California 92806
                        Facsimile No. (714) 688-7400
                        Attention: Chief Financial Officer

                        with a copy to:

                        Paul, Hastings, Janofsky & Walker LLP
                        695 Town Center Drive, Seventeenth Floor
                        Costa Mesa, California 92626
                        Facsimile No. (714) 668-6310
                        Attention: John F. Della Grotta, Esq.

or such other address or telecopier number as such Person may hereafter specify
by written notice to the other parties hereto given five (5) days prior to the
effectiveness of such change. Each such notice, request or other communication
will be effective only when actually delivered at the address specified in this
Section 6(d), if delivered prior to 5 p.m. (local time) and such day is a
business day, and if not, then such notice, request or other communication will
not be effective until the next succeeding business day. Written confirmation of
receipt (A) given by the recipient of such notice or other communication, (B)
mechanically or electronically generated by the sender's facsimile machine
containing the time, date, recipient facsimile

                                       20
<PAGE>

number and an image of the first page of such transmission, or (C) provided by a
courier or overnight courier service shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from a reputable overnight delivery
service.

            (e) Owner of Registrable Securities or Registrable Liquidated
      Damages Warrant Securities.

                  The Company will maintain, or will cause its registrar and
transfer agent to maintain, a stock book with respect to the Common Stock, in
which all transfers of Registrable Securities or Registrable Liquidated Damages
Warrant Securities of which the Company has received notice will be recorded.
The Company may deem and treat the Person in whose name Registrable Securities
or Registrable Liquidated Damages Warrant Securities are registered in the stock
book of the Company as the owner thereof for all purposes, including, without
limitation, the giving of notices under this Agreement.

            (f) Successors and Assigns.

                  Subject to this paragraph (f), this Agreement will inure to
the benefit of and be binding upon the successors and permitted assigns of each
of the parties and will inure to the benefit of each of the Holders. The Company
may not assign its rights or obligations hereunder. Holders may not assign their
rights and obligations under this Agreement; provided, however, that a Holder
may assign its rights and obligations under this Agreement to a third party in
connection with any transfer of Registrable Securities or Registrable Liquidated
Damages Warrant Securities (a "PERMITTED TRANSFEREE"). Notwithstanding the
foregoing, no Permitted Transferee shall be entitled to any of the transferring
Holder's rights under this Agreement (i) unless and until such Permitted
Transferee shall have acknowledged in writing its acceptance of such obligations
hereunder or (ii) if the transferring Holder notifies the Company in writing on
or prior to such transfer that the Permitted Transferee shall not have such
rights.

            (g) Counterparts; Effectiveness.

                  This Agreement may be signed in any number of counterparts,
each of which will be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument. Facsimile counterpart
signatures shall be acceptable. This Agreement will become effective when each
party hereto receives a counterpart hereof signed by the other party hereto.

            (h) Headings.

                  The descriptive headings herein are inserted for convenience
of reference only and are not intended to be part of or to limit or affect the
meaning or interpretation of this Agreement. All references herein to "Sections"
shall refer to corresponding provisions of this Agreement unless otherwise
expressly noted.

            (i) Governing Law.

                  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York as applied to agreements among
New York residents entered into and to be performed entirely within New York,
without giving effect to the principles of conflict of laws thereof that would
cause the application of the laws of any other jurisdiction.

                                       21
<PAGE>

            (j) Jurisdiction; Consent to Service of Process.

                  Each party hereby irrevocably submits, for itself and its
property, to the non-exclusive jurisdiction of the Supreme Court of the State of
New York located in New York, New York in the Borough of Manhattan or the United
States District Court for the Southern District of New York, and any appellate
court from any such court (as applicable, a "NEW YORK COURT"), in any suit,
action or proceeding arising out of or relating to this Agreement, or for
recognition or enforcement of any judgment resulting from any such suit, action
or proceeding, and each party hereby irrevocably and unconditionally agrees that
all claims in respect of any such suit, action or proceeding may be heard and
determined in the New York Court. Each party hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, (i) any objection which it may now or hereafter have to the laying of venue
of any suit, action or proceeding arising out of or relating to this Agreement
in the New York Court, (ii) the defense of an inconvenient forum to the
maintenance of such suit, action or proceeding in any such court, and (iii) the
right to object, with respect to such suit, action or proceeding, that such
court does not have jurisdiction over such party. Each party irrevocably
consents to service of process in any manner permitted by law.

            (k) WAIVER OF JURY TRIAL.

EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY OR DISPUTE THAT MAY
ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES
AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I)
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH SUCH PARTY
UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) EACH SUCH
PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) EACH SUCH PARTY HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 6(k).

            (l) Severability.

                  The holding of any provision of this Agreement to be invalid
or unenforceable by a court of competent jurisdiction shall not affect any other
provision of this Agreement, which shall remain in full force and effect. If any
provision of this Agreement shall be declared by a court of competent
jurisdiction to be invalid, illegal or incapable of being enforced in whole or
in part, such provision shall be interpreted so as to remain enforceable to the
maximum extent permissible consistent with applicable law and the remaining
conditions and provisions or

                                       22
<PAGE>

portions thereof shall nevertheless remain in full force and effect and
enforceable to the extent they are valid, legal and enforceable, and no
provisions shall be deemed dependent upon any other covenant or provision unless
so expressed herein.

            (m) Entire Agreement.

                  This Agreement constitutes the entire understanding and
agreement among the parties relating to the subject matter hereof and supersedes
any and all prior agreements, representations or understandings, both written
and oral, with respect to the subject matter hereof. Nothing in this Agreement,
express or implied, is intended to confer upon any Person, other than the
parties hereto and their respective successors and assigns, any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided herein.

            (n) No Strict Construction.

                  The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement will be construed as
if drafted jointly by the parties hereto, and no presumption or burden of proof
will arise favoring or disfavoring any party by virtue of the authorship of any
of the provisions of this Agreement.

            (o) Third Party Beneficiaries.

                  This Agreement and all of its provisions and conditions are
for the benefit of the parties to this Agreement, any Permitted Transferee and
solely with respect to the provisions of Section 5 hereof, any Indemnified
Party.

            (p) Termination.

                  This Agreement shall terminate on the date on which there
cease to be any Registrable Securities and Registrable Liquidated Damages
Warrant Securities outstanding. The provisions of Section 5 and Section 6(o)
shall survive the termination of this Agreement.

            (q) Independent Nature of Holders' Obligations and Rights.

                  The obligations of each Holder hereunder are several and not
joint with the obligations of any other Holder hereunder, and no Holder shall be
responsible in any way for the performance of the obligations of any other
Holder hereunder. Nothing contained herein or in any other agreement or document
delivered at any closing, and no action taken by any Holder pursuant hereto or
thereto, shall be deemed to constitute the Holders as a partnership, an
association, a joint venture or any other kind of entity, or create a
presumption that the Holders are in any way acting in concert with respect to
such obligations or the transactions contemplated by this Agreement. Each Holder
shall be entitled to protect and enforce its rights, including, without
limitation, the rights arising out of this Agreement, and it shall not be
necessary for any other Holder to be joined as an additional party in any
proceeding for such purpose.

                                       23
<PAGE>

            (r) No Conflicting Agreements.

                  The Company represents, warrants and agrees that (i) it has
not entered into, and shall not, on or after the date of this Agreement, enter
into, any agreement that is inconsistent with the rights granted to the Holders
in this Agreement or otherwise conflicts with the provisions hereof, (ii) it has
not previously entered into any agreement which remains in effect granting any
registration rights with respect to any of the Company's securities to any
person and (iii) without limiting the generality of the foregoing, without the
written consent of the Holders of a majority of the Registrable Securities and
Registrable Liquidated Damages Warrant Securities, it shall not grant to any
person the right to request the Company to register any Company securities under
the Securities Act unless the rights so granted are not in conflict or
inconsistent with the provisions of this Agreement.

            (s) No Inferences.

                  Nothing in this Agreement shall create any inference that any
Purchaser is required to register any securities of the Company for resale under
the Securities Act, other than the Common Stock issuable pursuant to the
Purchase Agreement and the Warrant Common Stock.

                            [Signature page follows]

                                       24

<PAGE>

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

                                             DDi CORP.

                                             By: _______________________________
                                                 Name:
                                                 Title:

                                      S-1

<PAGE>

                                             [HOLDER]

                                             By: _______________________________
                                                  Name:
                                                  Title:

                                             Address for Notice:

                                      S-2
<PAGE>

                                    EXHIBIT A

                                    AFFIDAVIT

      By executing signature line(s), the undersigned hereby certifies that
he/she/it is the principal beneficial owner of the securities of the Company set
forth below.

      The undersigned certifies that it is (i) the sole beneficial owner of the
securities of the Company set forth below, or (ii) if not the sole beneficial
owner of the securities set forth below, shares beneficial ownership of the
securities set forth below with the additional signatories set forth below.

      The undersigned understands that to be granted rights under the Agreement,
it must fill in the information on this form and return it to the Company, at
the address set forth in Section 6(d)(ii) of the Agreement.

      SUBMISSION OF THIS AFFIDAVIT WILL ENTITLE THE UNDERSIGNED TO RIGHTS UNDER
THE AGREEMENT BUT THESE RIGHTS ARE SUBJECT TO THE TERMS AND CONDITIONS OF THE
AGREEMENT.

Class of Securities of the Company
Which the Undersigned Beneficially Owns: _______________________________________
Number of Securities of the Company
Which the Undersigned Beneficially Owns: _______________________________________

Name of
Beneficiary: _________________________________________

By:          _________________________________________
             Authorized Representative
Name:
Title:

If more than one beneficial owner:

Name of other
beneficial owner:

By:          _________________________________________
             Authorized Representative
Name:
Title:

                                      A-1
<PAGE>

                                    EXHIBIT B

                              PLAN OF DISTRIBUTION

      The selling Holders, or their pledgees, donees, transferees, or any of
their successors in interest selling shares received from a named selling Holder
as a gift, partnership distribution or other non-sale-related transfer after the
date of this prospectus (all of whom may be selling Holders), may offer and sell
the securities from time to time on any stock exchange or automated inter-dealer
quotation system on which the securities are listed, in the over-the-counter
market, in privately negotiated transactions or otherwise, at fixed prices that
may be changed, at market prices prevailing at the time of sale, at prices
related to prevailing market prices or at prices otherwise negotiated. The
selling Holders may sell the securities by one or more of the following methods,
without limitation:

      (a) block trades in which the broker or dealer so engaged will attempt to
sell the securities as agent but may position and resell a portion of the block
as principal to facilitate the transaction;

      (b) purchases by a broker or dealer as principal and resale by the broker
or dealer for its own account pursuant to this prospectus;

      (c) on any national securities exchange or quotation service on which the
securities are listed or quoted at the time of sale;

      (d) in the over-the-counter market;

      (e) otherwise than on such exchanges or services or in the
over-the-counter market;

      (f) ordinary brokerage transactions and transactions in which the broker
solicits purchases;

      (g) privately negotiated transactions;

      (h) short sales;

      (i) through the writing of options on the securities, whether or not the
options are listed on an options exchange;

      (j) through the distribution of the securities by any selling Holder to
its partners, members or stockholders;

      (k) one or more underwritten offerings on a firm commitment or best
efforts basis;

      (l) transactions which may involve crosses or block transactions;

                                       B-1
<PAGE>

      (m) to cover hedging transactions (other than "short sales" as defined in
Rule 3b-3 under the Exchange Act) made pursuant to this prospectus;

      (n) by pledge to secure debts or other obligations;

      (o) any combination of any of these methods of sale; and

      (p) any other method permitted pursuant to applicable law.

      The selling Holders may also transfer the securities by gift. We do not
know of any arrangements by the selling Holders for the sale of any of the
securities.

      The selling Holders may engage brokers and dealers, and any brokers or
dealers may arrange for other brokers or dealers to participate in effecting
sales of the securities. These brokers, dealers or underwriters may act as
principals, or as an agent of a selling Holder. Broker-dealers may agree with a
selling Holder to sell a specified number of the securities at a stipulated
price per security. If the broker-dealer is unable to sell securities acting as
agent for a selling Holder, it may purchase as principal any unsold securities
at the stipulated price. Broker-dealers who acquire securities as principals may
thereafter resell the securities from time to time in transactions in any stock
exchange or automated inter-dealer quotation system on which the securities are
then listed, at prices and on terms then prevailing at the time of sale, at
prices related to the then-current market price or in negotiated transactions.
Broker-dealers may use block transactions and sales to and through
broker-dealers, including transactions of the nature described above. The
selling Holders may also sell the securities in accordance with Rule 144 under
the Securities Act of 1933, as amended, rather than pursuant to this prospectus,
regardless of whether the securities are covered by this prospectus.

      From time to time, one or more of the selling Holders may pledge,
hypothecate or grant a security interest in some or all of the securities owned
by them. The pledgees, secured parties or persons to whom the securities have
been hypothecated will, upon foreclosure in the event of default, be deemed to
be selling Holders. As and when a selling Holder takes such actions, the number
of securities offered under this prospectus on behalf of such selling Holder
will decrease. The plan of distribution for that selling Holder's securities
will otherwise remain unchanged. In addition, a selling Holder may, from time to
time, sell the securities short, and, in those instances, this prospectus may be
delivered in connection with the short sales and the securities offered under
this prospectus may be used to cover short sales.

      To the extent required under the Securities Act of 1933, the aggregate
amount of selling Holders' securities being offered and the terms of the
offering, the names of any agents, brokers, dealers or underwriters and any
applicable commission with respect to a particular offer will be set forth in an
accompanying prospectus supplement. Any underwriters, dealers, brokers or agents
participating in the distribution of the securities may receive compensation in
the form of underwriting discounts, concessions, commissions or fees from a
selling Holder and/or purchasers of selling Holders' securities of securities,
for whom they may act (which compensation as to a particular broker-dealer might
be in excess of customary commissions).

      The selling Holders and any underwriters, brokers, dealers or agents that
participate in the distribution of the securities may be deemed to be
"underwriters" within the meaning of the

                                      B-2
<PAGE>

Securities Act of 1933, and any discounts, concessions, commissions or fees
received by them and any profit on the resale of the securities sold by them may
be deemed to be underwriting discounts and commissions.

      A selling Holder may enter into hedging transactions with broker-dealers
and the broker-dealers may engage in short sales of the securities in the course
of hedging the positions they assume with that selling Holder, including,
without limitation, in connection with distributions of the securities by those
broker-dealers. A selling Holder may enter into option or other transactions
with broker-dealers that involve the delivery of the securities offered hereby
to the broker-dealers, who may then resell or otherwise transfer those
securities. A selling Holder may also loan or pledge the securities offered
hereby to a broker-dealer and the broker-dealer may sell the securities offered
hereby so loaned or upon a default may sell or otherwise transfer the pledged
securities offered hereby.

      The selling Holders and other persons participating in the sale or
distribution of the securities will be subject to applicable provisions of the
Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder, including Regulation M. This regulation may limit the timing of
purchases and sales of any of the securities by the selling Holders and any
other person. The anti-manipulation rules under the Securities Exchange Act of
1934 may apply to sales of securities in the market and to the activities of the
selling Holders and their affiliates. Furthermore, Regulation M may restrict the
ability of any person engaged in the distribution of the securities to engage in
market-making activities with respect to the particular securities being
distributed for a period of up to five business days before the distribution.
These restrictions may affect the marketability of the securities and the
ability of any person or entity to engage in market-making activities with
respect to the securities.

      We have agreed to indemnify in certain circumstances the selling Holders
and any brokers, dealers and agents who may be deemed to be underwriters, if
any, of the securities covered by the registration statement, against certain
liabilities, including liabilities under the Securities Act of 1933. The selling
Holders have agreed to indemnify us in certain circumstances against certain
liabilities, including liabilities under the Securities Act of 1933, as amended.

      The securities offered hereby were originally issued to the selling
Holders pursuant to an exemption from the registration requirements of the
Securities Act of 1933, as amended. We agreed to register the securities under
the Securities Act of 1933, and to keep the registration statement of which this
prospectus is a part effective until the date on which the selling Holders have
sold all of the securities. We have agreed to pay all expenses in connection
with this offering, including the fees and expenses of counsel or other advisors
to the selling Holders, but not including underwriting discounts, concessions or
commissions of the selling Holders.

      We will not receive any proceeds from sales of any securities by the
selling Holders.

      We cannot assure you that the selling Holders will sell all or any portion
of the securities offered hereby.

                                      B-3

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