Document:

THIS  WARRANT  HAS  NOT  BEEN  REGISTERED  UNDER  THE SECURITIES ACT OF 1933, AS
AMENDED  (THE  "SECURITIES  ACT"),  OR  APPLICABLE  STATE  SECURITIES LAWS.  THE
WARRANT  MAY  NOT  BE  SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR OTHERWISE
DISPOSED OF UNLESS IT HAS BEEN REGISTERED UNDER THOSE LAWS OR UNLESS THE COMPANY
HAS  RECEIVED  AN OPINION OF COUNSEL SATISFACTORY TO IT THAT SUCH DISPOSITION IS
IN  COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

                                         Right  to  Purchase  __________  Shares
                                         of  Common  Stock  of  VSource,  Inc.

                                  VSOURCE, INC.
                          Common Stock Purchase Warrant

     VSOURCE, INC., a Nevada corporation (the "Company"), hereby certifies that,
for value received, _________________________________ (the "Holder"), located at
___________________________________________________________ is entitled, subject
to  the  terms set forth below, to purchase from the Company at any time or from
time  to  time  on  or before 5:00 p.m., Pacific Standard time, on September 17,
2005  (the  "Expiration  Date"),  __________________  (________)  fully paid and
nonassessable  shares  of  common stock of the Company (the "Common Stock") at a
purchase  price  per  share equal to the Purchase Price, as defined herein.  The
number  of  such  shares  of  Common Stock and the Purchase Price are subject to
adjustment  as  provided  in this Warrant. The initial purchase price for shares
subject  to  this  Warrant will be Six and 41/100 Dollars ($6.41) per share (the
"Initial  Purchase  Price"),  and will be adjusted from time to time as provided
herein.  The  Initial  Purchase  Price  or, if such price has been adjusted, the
price per share of Common Stock as last adjusted pursuant to the terms hereof is
referred  to  as  the  "Purchase  Price"  herein.

     1.     EXERCISE  OF  WARRANT.  This  Warrant may be exercised by the Holder
            ---------------------
hereof  in full or in part at any time or from time to time until the Expiration
Date by surrender of this Warrant and the subscription form annexed hereto (duly
executed  by  the  Holder), to the Company, and by making payment, in cash or by
certified  or  official  bank  check payable to the order of the Company, in the
amount  obtained  by  multiplying  (a)  the  number  of  shares  of Common Stock
designated by the Holder in the subscription form by (b) the Purchase Price then
in effect.

                                      -1-
<PAGE>
On  any partial exercise the Company will forthwith issue and deliver to or upon
the  order  of the Holder hereof a new Warrant of like tenor, in the name of the
Holder  hereof,  providing in the aggregate on the face or faces thereof for the
purchase  of  the  number  of  shares of Common Stock for which such Warrant may
still  be  exercised.

     2.     DELIVERY  OF  STOCK  CERTIFICATES,  ETC.,  ON  EXERCISE.  As soon as
            -------------------------------------------------------
practicable  after  the  exercise  of this Warrant, the Company will cause to be
issued  in  the name of and delivered to the Holder hereof a certificate for the
number  of  fully  paid  and  nonassessable  shares  of  Common  Stock (or Other
Securities)  to  which  the  Holder shall be entitled on such exercise, plus, in
lieu  of  any  fractional share to which the Holder would otherwise be entitled,
cash equal to such fraction multiplied by the then current fair market value (as
reasonably determined by the Company) of one full share, together with any other
stock  or  other  securities  or  property (including cash, where applicable) to
which  the Holder is entitled upon such exercise.  "Other Securities" shall mean
any  stock  (other than Common Stock) and other securities of the Company or any
other  person  (corporate  or  otherwise)  which the Holder at any time shall be
entitled to receive, or shall have received, on the exercise of this Warrant, in
lieu  of  or in addition to Common Stock, or which at any time shall be issuable
or  shall  have been issued in exchange for or in replacement of Common Stock or
Other  Securities  pursuant  to  Sections  3  or  4.

     3.     ADJUSTMENT.
            ----------

                    (a) Initial Purchase Price;  Subsequent  Adjustment of Price
                        --------------------------------------------------------
     and  Number of  Purchasable  Shares.  The  Initial  Purchase  Price will be
     -----------------------------------
     adjusted from time to time as provided  below.  The Initial  Purchase Price
     or, if such price has been adjusted, the price per share of Common Stock as
     last adjusted  pursuant to the terms hereof is referred to as the "Purchase
     Price" herein.  Upon each adjustment of the Purchase Price, the Holder will
     thereafter be entitled to purchase,  at the Purchase  Price  resulting from
     such  adjustment,  the  number  of  shares  of  Common  Stock  obtained  by
     multiplying the Purchase Price in effect immediately before such adjustment
     by the  number  of  shares of Common  Stock  purchasable  pursuant  to this
     Warrant  immediately before such adjustment and dividing the product by the
     Purchase Price resulting from such adjustment.

                                      -2-
<PAGE>
                    (b)  Adjustment  for Stock Splits and  Combinations.  If the
                        -----------------------------------------------
     Company  at any time or from time to time  after  the date of this  Warrant
     effects a subdivision of the  outstanding  Common Stock,  by stock split or
     otherwise,  the  Purchase  Price  then in effect  immediately  before  that
     subdivision shall be proportionately  decreased;  and,  conversely,  if the
     Company  at any time or from time to time  after  the date of this  Warrant
     combines the outstanding  shares of Common Stock, by reverse stock split or
     otherwise,  the  Purchase  Price  then in effect  immediately  before  that
     combination shall be proportionately  increased.  Any adjustment under this
     Section  3(b) shall  become  effective at the close of business on the date
     the subdivision or combination becomes effective.

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

                    (d) Adjustments for Other  Dividends and  Distributions.  In
                        --------------------------------------------------
     the event the  Company  at any time or from time to time  after the date of
     this Warrant makes, or fixes a record date for the determination of holders
     of Common  Stock  entitled  to receive,  a dividend  or other  distribution
     payable in  securities  of the Company  other than shares of Common  Stock,
     then and in each such  event,  provision  shall be made so that the  Holder
     shall receive upon exercise hereof,  in addition to the number of shares of
     Common Stock receivable thereupon,  the amount of securities of the Company
     which it would have received had this

                                      -3-
<PAGE>
     Warrant been  converted  into Common Stock as of the date of such event and
     had it  thereafter,  during the  period  from the date of such event to and
     including the date of exercise,  retained such securities  receivable by it
     as aforesaid during such period,  subject to all other  adjustments  called
     for during such period  under this  Section 3 with respect to the rights of
     the Holder.

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

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

                                      -4-
<PAGE>
                    (g) Sale of Shares Below Conversion Price.
                        ---------------------------------------

                         (1) If at any time or from time to time  after the date
          hereof  the  Company  issues  or sells,  or is  deemed by the  express
          provisions  of this  Section  3(g) to have issued or sold,  Additional
          Shares  of Common  Stock (as  hereinafter  defined),  other  than as a
          dividend  or other  distribution  on any class of stock as provided in
          Section 2 and other than upon a subdivision  or  combination of shares
          of Common Stock as provided in Section 2, for an  Effective  Price (as
          hereinafter  defined)  less than the then existing  Conversion  Price,
          then and in each such case the then existing Conversion Price shall be
          reduced,  as of the  opening of  business on the date of such issue or
          sale, to a price  determined by multiplying that Conversion Price by a
          fraction  the  numerator of which shall be (A) the number of shares of
          Common  Stock  outstanding  at the close of  business  on the day next
          preceding  the  date of such  issue or sale,  plus (B) the  number  of
          shares of Common Stock which the aggregate  consideration received (or
          by the express  provisions  hereof is deemed to have been received) by
          the Company for the total number of Additional  Shares of Common Stock
          so issued would purchase at such Conversion Price, plus (C) the number
          of shares of Common Stock  underlying Other Securities (as hereinafter
          defined)  and the  denominator  of which  shall be (X) the  number  of
          shares of Common  Stock  outstanding  at the close of  business on the
          date of such issue  after  giving  effect to such issue of  Additional
          Shares of Common Stock,  plus (Y) the number of shares of Common Stock
          underlying  the Other  Securities at the close of business on the date
          of such issue or sale.

                         (2) For the purpose of making any  adjustment  required
          under this Section 3(g), the consideration received by the Company for
          any issue or sale of securities shall (A) to the extent it consists of
          cash be computed at the amount of cash received by the Company, (B) to
          the extent it consists of property other than cash, be computed at the
          fair value of that  property  as  determined  in  accordance  with the
          procedure set forth in Section 2 above,  and (C) if Additional  Shares
          of Common Stock,  Convertible  Securities (as hereinafter  defined) or
          rights or options to purchase either Additional Shares of Common Stock
          or Convertible Securities are issued or sold together with other stock
          or securities or other assets of the Company for a consideration which
          covers  both,  be  computed  as the  portion of the  consideration  so
          received that may be reasonably  determined in good faith by the Board
          to be allocable to such Additional Shares of Common Stock, Convertible
          Securities  or rights or  options  under  the  procedure  set forth in
          Section 2 above.

                                      -5-
<PAGE>
                         (3) For the purpose of the  adjustment  required  under
          this  Section  3(g),  if the  Company  issues or sells  any  rights or
          options for the purchase of, or stock or other securities  convertible
          into,  Additional  Shares of Common Stock (such  convertible  stock or
          securities being hereinafter referred to as "Convertible  Securities")
          and if the Effective Price of such  Additional  Shares of Common Stock
          is less than the  Conversion  Price then in effect,  then in each case
          the Company shall be deemed to have issued at the time of the issuance
          of such rights or options or Convertible Securities the maximum number
          of  Additional  Shares of  Common  Stock  issuable  upon  exercise  or
          conversion  thereof  and to have  received  as  consideration  for the
          issuance  of such  shares an amount  equal to the total  amount of the
          consideration,  if any,  received by the  Company for the  issuance of
          such rights or options or Convertible Securities, plus, in the case of
          such rights or options, the minimum amounts of consideration,  if any,
          payable to the  Company  upon the  exercise of such rights or options,
          plus, in the case of Convertible  Securities,  the minimum  amounts of
          consideration,   if  any,  payable  to  the  Company  (other  than  by
          cancellation   of  liabilities   or  obligations   evidenced  by  such
          Convertible  Securities)  upon  the  conversion  thereof.  No  further
          adjustment of the Conversion Price, adjusted upon the issuance of such
          rights, options or Convertible  Securities,  shall be made as a result
          of the actual  issuance of  Additional  Shares of Common  Stock on the
          exercise of any such rights or options or the  conversion  of any such
          Convertible  Securities.   If  any  such  rights  or  options  or  the
          conversion  privilege  represented by any such Convertible  Securities
          shall expire  without  having been  exercised,  the  Conversion  Price
          adjusted  upon the  issuance of such  rights,  options or  Convertible
          Securities  shall be  readjusted to the  Conversion  Price which would
          have been in effect had an adjustment  been made on the basis that the
          only  Additional  Shares of Common Stock so issued were the Additional
          Shares  of  Common  Stock,  if  any,  actually  issued  or sold on the
          exercise  of such  rights or options or rights of  conversion  of such
          Convertible Securities, and such Additional Shares of Common Stock, if
          any, were issued or sold for the  consideration  actually  received by
          the  Company  upon  such  exercise,  plus the  consideration,  if any,
          actually  received by the Company for the  granting of all such rights
          or options, whether or not exercised,  plus the consideration received
          for issuing or selling the Convertible  Securities actually converted,
          plus the  consideration,  if any,  actually  received  by the  Company
          (other than by cancellation of liabilities or obligations evidenced by
          such  Convertible  Securities) on the  conversion of such  Convertible
          Securities.

                                      -6-
<PAGE>
                         (4) "Additional  Shares of Common Stock" shall mean all
          shares of Common  Stock  issued by the Company  after the date hereof,
          whether or not  subsequently  reacquired  or  retired by the  Company,
          other than:  (A) shares of Common Stock issued upon  conversion of the
          Series  2-A  Preferred  Stock or any  other  options  or  warrants  or
          convertible securities outstanding or issuable on the date hereof; (B)
          shares of Common Stock issuable or issued to the  directors,  officers
          and employees of or consultants  to the Company;  (C) shares of Common
          Stock  issuable or issued as part of an  acquisition by the Company of
          all of or certain assets  (including  technology  rights) or shares of
          another  company  or  entity  whether  through  a  purchase,   merger,
          exchange,  reorganization  or the like;  (D)  shares  of Common  Stock
          issuable  or  issued  pursuant  to  equipment   financing  or  leasing
          arrangements;  or  (E)  shares  issued  in a  public  offering  of the
          Company's  securities.  The "Effective  Price" of Additional Shares of
          Common Stock shall mean the quotient  determined by dividing the total
          number of Additional  Shares of Common Stock issued or sold, or deemed
          to have been issued or sold by the Company  under this  Section  3(g),
          into the  aggregate  consideration  received,  or  deemed to have been
          received by the Company for such issue under this  Section  3(g),  for
          such  Additional  Shares  of Common  Stock.  "Other  Securities"  with
          respect to an issue or sale of Additional Shares of Common Stock shall
          mean (i) preferred stock, debentures and notes convertible into Common
          Stock,  and (ii)  options or warrants to  purchase  Common  Stock at a
          price that is no greater than 95% of the Effective Price of such issue
          or sale of Additional Shares of Common Stock. The "number of shares of
          Common Stock underlying  Other  Securities" on a particular date shall
          mean the number of shares of Common Stock  issuable  upon the exercise
          or  conversion,  as the case may be, of such Other  Securities  at the
          close of business on such date but only to the extent that the holders
          thereof  have the fully vested legal right to exercise or convert such
          Other  Securities  on such date and to retain the Common  Stock issued
          upon such exercise or conversion.

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

                                      -7-
<PAGE>
     4.     EXERCISE  UPON  REORGANIZATION, CONSOLIDATION, MERGER, ETC.  In case
            ----------------------------------------------------------
at  any  time  or  from  time  to  time,  the  Company  intends  to (a) effect a
reorganization, (b) consolidate with or merge into any other person, (c) sell or
transfer  all  or  substantially  all  of  its properties or assets to any other
person,  (d)  dissolve,  (e)  consummate  an  initial  public  offering  of  its
securities;  or  if  the  Company is sold through the sale of its capital stock,
then, notwithstanding any other provision of this Warrant, in each such case, as
a  condition  of  such  reorganization, consolidation, merger, sale dissolution,
conveyance,  or  offering  the Company shall give at least fifteen (15) business
days  notice  to the Holder of such pending transaction whereby the Holder shall
have  the  right  to  exercise  this  Warrant  prior to any such reorganization,
consolidation,  merger, sale, dissolution, conveyance or offering.  Any exercise
of  this Warrant pursuant to notice under this Section shall be conditioned upon
the  closing  of  such reorganization, consolidation, merger, sale, dissolution,
conveyance  or  offering  which is the subject of the notice and the exercise of
this Warrant shall not be deemed to have occurred until immediately prior to the
closing  of  such  transaction.

     5.     FURTHER  ASSURANCES.  The  Company  will take all action that may be
            -------------------
necessary or appropriate in order that the Company may validly and legally issue
fully  paid  and  nonassessable  shares of stock, free from all taxes, liens and
charges with respect to the issue thereof, on the exercise of all or any portion
of  this  Warrant  from  time  to  time  outstanding.

     6.     NOTICES  OF  RECORD  DATE,  ETC.  In  the  event  of:
            ------------------------------------
                    (a) any taking by the  Company of a record of the holders of
     any class of securities for the purpose of determining  the holders thereof
     who are entitled to receive any dividend on, or any right to subscribe for,
     purchase or otherwise acquire any shares of stock of any class or any other
     securities or property, or to receive any other right, or

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

                                      -8-
<PAGE>
                    (c) Any voluntary or involuntary dissolution, liquidation or
     winding-up  of the  Company;  then and in each such event the Company  will
     mail or cause to be mailed to the Holder,  at least  fifteen (15)  business
     days prior to such record date, a notice  specifying  (i) the date on which
     any  such  record  is to  be  taken  for  the  purpose  of  such  dividend,
     distribution  or right,  and  stating  the  amount  and  character  of such
     dividend,   distribution  or  right,  (ii)  the  date  on  which  any  such
     reorganization,      reclassification,      recapitalization,     transfer,
     consolidation,  merger,  dissolution,  liquidation or winding up is to take
     place,  and the time,  if any is to be fixed,  as of which the  holders  of
     record of Common Stock (or Other  Securities) shall be entitled to exchange
     their shares of Common Stock (or Other  Securities) for securities or other
     property    deliverable   on   such    reorganization,    reclassification,
     recapitalization, transfer, consolidation, merger, dissolution, liquidation
     or  winding-up,  and (iii) the amount and  character  of any stock or other
     securities,  or rights or options  with  respect  thereto,  proposed  to be
     issued or granted, the date of such proposed issue or grant and the persons
     or class of persons to whom such  proposed  issue or grant is to be offered
     or made.  Such  notice  shall also state that the action in question or the
     record date is subject to the  effectiveness  of a  registration  statement
     under the Securities Act or a favorable vote of  stockholders  if either is
     required.  Such notice shall be mailed at least  fifteen (15) business days
     prior to the date  specified  in such notice on which any such action is to
     be taken or the record date, whichever is earlier. The Holder shall use its
     best efforts to decide  whether to exercise  this  Warrant  within ten (10)
     days of its receipt of such notice.

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

          8. TRANSFER OF WARRANT. This Warrant cannot be transferred without the
             --------------------
     prior  written  consent  of  the  Company,   which  consent  shall  not  be
     unreasonably  withheld;  provided,  however,  the Holder may transfer  this
     Warrant  to any of its  affiliates  without  such  consent  so long as such
     transfer complies with all applicable securities laws.

                                      -9-
<PAGE>
          9. NO RIGHTS AS A  STOCKHOLDER.  This  Warrant  shall not  entitle the
             ----------------------------
     Holder hereof to any voting rights or other rights as a stockholder  of the
     Company.

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

          If  to  Holder:       To the address set forth on the first page
                                hereof.

          If to  the  Company:  VSource, Inc.
                                5740 Ralston Street, Suite 110
                                Ventura, California 93003
                                Attn.: CEO

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

                                      -10-
<PAGE>
          12.  LEGEND.  Unless  theretofore  registered  for  resale  under  the
               ------
     Securities  Act, each  certificate  for shares issued upon exercise of this
     Warrant shall bear the following or a similar legend:

          The shares  represented by this  certificate  have not been registered
     under the  Securities  Act of 1933,  as amended,  or any  applicable  state
     securities  laws. The securities  have been acquired for investment and may
     not be resold,  transferred  or  assigned  in the  absence of an  effective
     registration statement for the securities under the Securities Act of 1933,
     as amended,  or an opinion of counsel  acceptable  to the Company that such
     disposition  is in compliance  with the  Securities  Act and any applicable
     state securities laws.

          13.  MISCELLANEOUS.  This Warrant and any terms hereof may be changed,
               --------------
     waived, discharged or terminated only by an instrument in writing signed by
     the party against which  enforcement of such change,  waiver,  discharge or
     termination  is sought.  This Warrant  shall be  construed  and enforced in
     accordance  with  and  governed  by  the  internal  laws  of the  State  of
     California,  without regard to conflict of laws principles. The headings in
     this  Warrant are for purposes of  reference  only,  and shall not limit or
     otherwise   affect   any  of  the   terms   hereof.   The   invalidity   or
     unenforceability  of  any  provision  hereof  shall  in no way  affect  the
     validity or enforceability of any other provision.

          IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
     on its  behalf  by one of its  officers  thereunto  duly  authorized  as of
     September 18, 2000.

                                     VSOURCE,  INC.

                                     By:  ______________________________________
                                          Robert C. McShirley, President and CEO

                                      -11-
<PAGE>
                              FORM OF SUBSCRIPTION

                                  VSOURCE, INC.

                   (To be signed only on exercise of Warrant)

TO:     VSOURCE,  INC.

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

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

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

Dated:_______________________

                                              __________________________________
                                                    Signature  of  Holder

                                      -12-
<PAGE>VSOURCE, INC.

                          REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement ("Agreement") is entered into as of July
31,  2000  by and among Vsource, Inc., a Nevada corporation (the "Company"), and
the  Purchasers  (the  "Purchasers")  of  the  Company's  Series  A  Convertible
Preferred  Stock  pursuant  to that certain Convertible Preferred Stock Purchase
Agreement  of even date herewith (the "Purchase Agreement") and named in Exhibit
A  hereto.

     WHEREAS,  in  connection  with  the  Company's  issuance  of  Series  2-A
Convertible  Preferred Stock pursuant to the Purchase Agreement, the Company has
agreed  to  enter  into this Registration Rights Agreement as a condition to the
Closing  thereunder;

     NOW  THEREFORE,  in  consideration  of  the mutual agreements and covenants
contained  herein,  the  Company  and  the  Purchasers  hereby agree as follows:

     1.   DEFINITIONS.  As  used  herein:

          1.1 The term "Holder" means any person owning or having the right to
acquire  Registrable  Shares  or any assignee thereof in accordance with Section
2.8  hereof.

          1.2 The terms "register," "registered," and "registration" refer to a
registration  effected  by  preparing  and  filing  a  registration statement in
compliance  with  the Securities Act (as defined below) and the applicable rules
and regulations thereunder, and the declaration or ordering of the effectiveness
of  such  registration  statement.

          1.3 For the purposes hereof, the term "Registrable Shares" means and
includes  (i)  the shares of common stock of the Company issued or issuable upon
conversion  of  the  Series  2-A  Convertible  Preferred  Stock (the "Series 2-A
Shares")  and  (ii) any common stock of the Company issued, or issuable upon the
conversion  or  exercise  of  (A)  any warrant, right or other security which is
issued,  as  a  result  of  a  stock  split, dividend or other distribution with
respect  to or in exchange for or in replacement of the shares referenced in (i)
above  and  (B)  any warrant, right or other security acquired by a Holder after
the  date  hereto  pursuant the Purchase Agreement of even date herewith or this
Agreement;  excluding  in  all  cases, however, any Registrable Shares sold by a
person  in  a  transaction  in  which  his or her rights under Section 2 are not
assigned.

                                      -1-
<PAGE>
In addition, any particular shares of Common Stock shall cease to be Registrable
Shares  when:  (w)  a  registration  statement  with respect to the sale of such
securities  shall  have  become  effective  under  the  Securities  Act and such
securities  shall  have  been  disposed  of in accordance with such registration
statement,  (x)  they shall have been distributed to the public pursuant to Rule
144  (or  any successor provision) under the Securities Act, (y) they shall have
been  otherwise transferred, new certificates for them shall have been delivered
by the Company and subsequent disposition of them shall not require registration
or  qualification of them under the Securities Act or any similar state law then
in  force,  or  (z)  they  shall  have  ceased  to  be  outstanding.

          1.4 The term "Ownership  Percentage" means and includes,  with respect
to each Holder of Registrable Shares requesting  inclusion of Registrable Shares
in a Public  Offering,  the number of  Registrable  Shares  held by such  Holder
divided by the  aggregate  of (i) all  Registrable  Shares  held by all  Holders
requesting  registration in such offering and (ii) the total number of all other
securities  entitled to registration  pursuant to any agreement with the Company
approved  by the  Board of  Directors  and held by others  participating  in the
Public Offering.

          1.5 The term  "Securities  Act" means the  Securities  Act of 1933, as
amended.

          1.6 The term "Public Offering" means and includes the closing of a
public  offering  pursuant  to  an  effective  registration  statement under the
Securities  Act, covering the offer and sale of securities issued by the Company
to  the  general public, other than an offering made solely in connection with a
business  combination  or  a  compensatory  benefit  plan.

     2.   REGISTRATION  RIGHTS.

          2.1 REGISTRATION STATEMENT; WARRANTS. As soon as practicable after the
date  hereof,  but  in  any event no later than sixty (60) days after the Second
Closing,  the  Company  shall  prepare  and  file  with  the  SEC a registration
statement  intended to effect a shelf registration in connection with a Rule 415
offering  (the  "Shelf  Registration Statement") with respect to all Registrable
Shares and use its reasonable efforts to cause such Shelf Registration Statement
to  become  effective  and  keep such registration statement effective until the
earlier  of  (x)  the  date  on which such Shelf Registration Statement has been
effective  for  two (2) years; (y) such time as all Registrable Shares have been
sold  or  disposed  of; and (z) such time as all Registrable Shares are eligible
for  sale pursuant to SEC Rule 144.

                                      -2-
<PAGE>
If  the  Shelf Registration Statement has not been declared effective before the
date  which  is  120  days  after the Second Closing (as defined in the Purchase
Agreement),  then  the Company shall issue to each Holder a warrant to purchase,
at  an  exercise  price  equal to the Purchase Price (as defined in the Purchase
Agreement)  of that Holder's shares, a number of shares of Common Stock equal to
the  product  of  (x)  two percent (2%) of the number of Registrable Shares then
held  by  such  Holder  (including Registrable Shares which may be acquired upon
conversion  of  Series 2-A Shares) and (y) a fraction, the numerator of which is
the  lesser  of  450 and the number of days by which the date on which the Shelf
Registration  Statement is declared effective follows the date which is 120 days
after  the  Second  Closing,  and the denominator of which is thirty (30).  Each
such warrant shall be in form reasonably acceptable to Mercantile (as defined in
the  Purchase  Agreement)  and  the  Company and their respective counsel, shall
expire on the fifth (5th) anniversary of its date of issuance, and shall contain
"anti-dilution"  provisions  parallel  to  those contained in the Certificate of
Designation  with  respect to the Series 2-A Shares.  If the Second Closing does
not  occur,  all references in this Section 2.1 to the Second Closing shall mean
the  First  Closing.

          2.2 "PIGGY BACK" REGISTRATION. If at any time the Company shall
determine  to  register  under the Securities Act any of its common stock (other
than  a  registration  relating  to an offering made solely in connection with a
business  combination  or  a  compensatory  benefit plan), it shall send to each
Holder  written  notice  of  such  determination and, if within twenty (20) days
after  receipt  of  such  notice,  such  Holder shall so request in writing, the
Company shall use its best efforts to include in such registration statement all
or  any  part  of  the  Registrable  Shares  that  such  Holder  requests  to be
registered.  If the shares being sold by the Company under such registration are
to  be  underwritten,  the  Registrable  Shares  shall  be  included  in  such
underwriting.  Notwithstanding  the foregoing, if, in connection with any Public
Offering  involving an underwriting of common stock to be issued by the Company,
the  managing  underwriter  shall impose a limitation on the number of shares of
common  stock  included  in  any  such  registration  statement because, in such
underwriter's judgment, such limitation is necessary based on market conditions,
the  Company  may exclude, to the extent so advised by the managing underwriter,
the  Registrable  Shares  from  the underwriting; provided, however, that if the
underwriters  do  not  entirely  exclude  the  Registrable  Shares  from  the
underwriting,  the  Company  shall  be obligated to include in such registration
statement,  with  respect  to  the  requesting  Holder, an amount of Registrable
Shares  equal to the product of (i) the number of Registrable Shares that remain
available  for  registration  after  the  underwriter's  cut  back and (ii) such
Holder's  Ownership Percentage, as that term is defined in Section 1.4; provided
further,  however, Registrable Shares may not be excluded from such underwriting
to any greater extent than securities held by any other person who has exercised
similar  "piggy-back"  rights with respect to such securities in connection with
such  underwriting.  No  such reduction shall be made with respect to securities
being offered by the Company for its own account unless the offering is pursuant
to  a  demand  of any stockholder of the Company exercising registration rights.
If  any  Holder disapproves of the terms of any underwriting referred to in this
section, he may elect to withdraw therefrom by written notice to the Company and
the  underwriter  at  least  three  (3)  days  prior to the effectiveness of the
registration  statement  filed in connection with such proposed Public Offering.

                                      -3-
<PAGE>
At  any  time  prior  to  the  effectiveness of such registration statement, the
Company  may withdraw the entire registration, including the registration of any
Registrable Shares, if the Company's Board of Directors determines that it is in
the  Company's  best  interest  to  do  so  and promptly provides notice of such
withdrawal  to  the  Holders.  The  Company  may  require  each  Holder  selling
Registrable  Shares  to furnish Company such information and documents regarding
the  Holder  and  the  distribution  of such securities as may be required to be
disclosed  in  the Registration Statement by the rules and regulations under the
Securities  Act or under any other applicable securities or blue sky laws of the
applicable jurisdictions.  The Company will use its best efforts to maintain the
effectiveness  for up to three (3) months of any registration statement pursuant
to which any of the Registrable Shares are being offered under this Section 2.2;
provided,  however,  that such three-month period shall be extended for a period
of  time  equal  to  the  period the Holder refrains from selling any securities
included  in  such registration at the request of an underwriter of common stock
(or  other  securities)  of  the  Company.

          2.3  EFFECTIVENESS.

               (a) The Company  will from time to time amend or  supplement  the
     registration  statement and the  prospectus  contained  therein used in any
     Public Offering under which  Registrable  Shares are being sold pursuant to
     this Agreement as and to the extent necessary to comply with the Securities
     Act and any applicable state securities statute or regulation.

               (b) Each Holder  selling  Registrable  Shares  agrees that,  upon
     receipt of any notice  from  Company of the  happening  of any event of the
     kind described in Section 2.7(c), such Holder will immediately  discontinue
     disposition of Registrable  Shares pursuant to the  Registration  Statement
     until such Holder's  receipt of the copies of the  supplemented  or amended
     prospectus  contemplated by Section 2.7(c), and, if so directed by Company,
     each such Holder will deliver to Company (at Company's expense) all copies,
     other than permanent file copies then in such Holder's  possession,  of the
     prospectus  covering such Registrable Shares current at the time of receipt
     of such notice.  In such event,  the Company shall promptly,  and within no
     more than 30 days of giving notice to the Holders as provided above in this
     Section 2.3(c),  prepare a supplement or  post-effective  amendment to such
     registration  statement or related  prospectus  or file any other  required
     document so that, as thereafter  delivered to the purchasers of Registrable
     Securities  sold  thereunder,  the  prospectus  will not  contain an untrue
     statement of a material  fact or omit to state a material  fact required to
     be stated therein or necessary to make the statements  therein, in light of
     the circumstances under which they were made, not misleading.

                                      -4-
<PAGE>
       2.4     INDEMNIFICATION.

               (a) Indemnification of Holders. In the event that the Company
                   --------------------------
     registers  any of the  Registrable  Shares  under the  Securities  Act, the
     Company will  indemnify and hold harmless each Holder and each  underwriter
     of the  Registrable  Shares so registered  (including  any broker or dealer
     through  which  such  shares  may be sold)  and each  person,  if any,  who
     controls such Holder or any such underwriter  within the meaning of Section
     15 of the  Securities  Act from and  against  any and all  losses,  claims,
     damages,  expenses or liabilities (or any action in respect thereof), joint
     or  several,  to  which  they  or any of  them  become  subject  under  the
     Securities  Act or under any other  statute or at common law or  otherwise,
     and, except as hereinafter provided,  will reimburse each such Holder, each
     such underwriter and each such controlling person, if any, for any legal or
     other expenses reasonably incurred by them or any of them, as such expenses
     are incurred,  in connection  with  investigating  or defending any actions
     whether or not resulting in any liability,  insofar as such losses, claims,
     damages,  expenses,  liabilities  or actions arise out of or are based upon
     (i) any untrue  statement or alleged  untrue  statement of a material  fact
     contained in the  registration  statement,  in any  preliminary  or amended
     preliminary  prospectus or in the prospectus (or the registration statement
     or prospectus as from time to time amended or supplemented by the Company);
     (ii) any  omission  or alleged  omission to state  therein a material  fact
     required to be stated  therein or necessary in order to make the statements
     therein  not  misleading;  or (iii) any  violation  by the  Company  of the
     Securities  Act,  the  Securities  Exchange  Act of 1934,  as amended  (the
     "Exchange Act"), a state securities law or any rule or regulation under the
     Securities  Act, the Exchange Act or any state  securities  law;  provided,
     however, that the indemnity contained in this Section 2.4(a) will not apply
     where such  untrue  statement  or  omission  was made in such  registration
     statement,  preliminary or amended, preliminary prospectus or prospectus in
     reliance upon and in conformity  with  information  furnished in writing to
     the Company in connection  therewith by such Holder of Registrable  Shares,
     any such  underwriter  or any such  controlling  person  expressly  for use
     therein or arises from such Holder's breach of its  obligations  under this
     Agreement.  Promptly after receipt by any Holder of Registrable Shares, any
     underwriter or any controlling  person of notice of the commencement of any
     action in respect of which  indemnity  may be sought  against the  Company,
     such Holder of Registrable  Shares, or such underwriter or such controlling
     person,  as the case may be,  will  notify  the  Company  in writing of the
     commencement  thereof,  and, subject to the provisions  hereinafter stated,
     the  Company  shall  assume  the  defense  of such  action  (including  the
     employment of counsel, who shall be counsel reasonably satisfactory to such
     Holder of Registrable  Shares, such underwriter or such controlling person,
     as the case may be),  and the  payment of  expenses  insofar as such action
     shall relate to any alleged  liability in respect of which indemnity may be
     sought against the Company.

                                      -5-
<PAGE>
     Such  Holder  of  Registrable  Shares,  any  such  underwriter  or any such
     controlling  person shall have the right to employ separate  counsel in any
     such  action and to  participate  in the  defense  thereof in the event the
     representation of such Holder, underwriter or controlling person by counsel
     retained by or on the behalf of the Company would be  inappropriate  due to
     conflicts  of  interest  between  any  such  person  and  any  other  party
     represented by such counsel in such proceeding or action, in which case the
     Company shall pay, as incurred,  the  reasonable  fees and expenses of such
     separate  counsel.  The Company shall not be liable to indemnify any person
     under this Section  2.4(a) for any  settlement of any such action  effected
     without the Company's  consent  (which  consent  shall not be  unreasonably
     withheld).  The Company  shall not,  except with the approval of each party
     being  indemnified  under this Section  2.4(a) (which  approval will not be
     unreasonably withheld),  consent to entry of any judgment or enter into any
     settlement  that does not  include as an  unconditional  term  thereof  the
     giving by the claimant or plaintiff to the parties being so  indemnified of
     a release from all liability in respect to such claim or litigation.

               (b) Indemnification of Company. In the event that the Company
                   ---------------------------
     registers  any of the  Registrable  Shares under the  Securities  Act, each
     Holder of the  Registrable  Shares so  registered  will  indemnify and hold
     harmless the Company, each of its directors,  each of its officers who have
     signed the  registration  statement,  each  underwriter of the  Registrable
     Shares so registered  (including  any broker or dealer through which any of
     such shares may be sold) and each person,  if any, who controls the Company
     within  the  meaning  of  Section  15 of the  Securities  Act and all other
     Holders and their respective  officers,  directors and controlling  persons
     from  and  against  any  and  all  losses,  claims,  damages,  expenses  or
     liabilities (or any action in respect thereof),  joint or several, to which
     they or any of them may become  subject under the  Securities  Act or under
     any other statute or at common law or otherwise, and, except as hereinafter
     provided,  will  reimburse  the  Company and each such  director,  officer,
     underwriter  or  controlling   person  for  any  legal  or  other  expenses
     reasonably  incurred by them or any of them, as such expenses are incurred,
     in connection  with  investigating  or defending any actions whether or not
     resulting  in any  liability,  insofar  as such  losses,  claims,  damages,
     expenses,  liabilities or actions arise out of or are based upon any untrue
     statement or alleged  untrue  statement of a material fact contained in the
     registration   statement,   in  any  preliminary  or  amended   preliminary
     prospectus  or  in  the  prospectus  (or  the  registration   statement  or
     prospectus as from time to time amended or supplemented) or arise out of or
     are based upon the omission or alleged omission to state therein a material
     fact  required  to be  stated  therein  or  necessary  in order to make the
     statements  therein not misleading,  but only insofar as any such statement
     or omission was made in reliance  upon and in conformity  with  information
     furnished in writing to the Company in connection therewith by such Holder,
     expressly  for  use  therein;   provided,   however,   that  such  Holder's
     obligations  hereunder  shall be limited to an amount equal to the proceeds
     to such Holder of the Registrable Shares sold in such registration.

                                      -6-
<PAGE>
     Promptly  after  receipt  of notice of the  commencement  of any  action in
     respect of which indemnity may be sought against such Holder of Registrable
     Shares,  the  Company  will notify  such  Holder of  Registrable  Shares in
     writing of the commencement  thereof, and such Holder of Registrable Shares
     shall, subject to the provisions  hereinafter stated, assume the defense of
     such action  (including  the  employment  of counsel,  who shall be counsel
     reasonably satisfactory to the Company) and the payment of expenses insofar
     as such action  shall  relate to the alleged  liability in respect of which
     indemnity  may be sought  against such Holder of  Registrable  Shares.  The
     Company and each such director, officer,  underwriter or controlling person
     shall have the right to employ  separate  counsel in any such action and to
     participate in the defense thereof in the event the  representation  of the
     Company, any of its officers or directors or any underwriter or controlling
     person by  counsel  retained  by or on the behalf of such  Holder  would be
     inappropriate  due to conflicts of interest between any such person and any
     other party  represented by such counsel in such  proceeding or action,  in
     which case such Holder  shall pay, as  incurred,  the  reasonable  fees and
     expenses  of such  separate  counsel.  Such  Holder  shall not be liable to
     indemnify any person for any settlement of any such action effected without
     such Holder's  consent (which consent shall not be unreasonably  withheld).
     Such  Holder  shall not,  except  with the  approval  of the  person  being
     indemnified (which approval shall not be unreasonably withheld), consent to
     entry of any judgment or enter into any settlement that does not include as
     an  unconditional  term  thereof the giving by the claimant or plaintiff to
     the party being so  indemnified  of a release from all liability in respect
     to such  claim or  litigation.

               2.5 CONTRIBUTION.  If the indemnification provided for in Section
2.4 is  held  by a court  of  competent  jurisdiction  to be  unavailable  to an
indemnified party with respect to any loss, liability, claim, damage, or expense
referred to therein,  then the indemnifying  party, in lieu of indemnifying such
indemnified  party hereunder,  shall contribute to the amount paid or payable by
such indemnified party as a result of such loss,  liability,  claim,  damage, or
expense in such  proportion as is  appropriate  to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the other
in  connection  with the  statements  or omissions  that  resulted in such loss,
liability,  claim,  damage,  or expense as well as any other relevant  equitable
considerations.

                                      -7-
<PAGE>
The relative  fault of the indemnifying party and of the indemnified party shall
be determined by reference to, among other things, whether the untrue or alleged
untrue  statement  of  a  material fact or the omission to state a material fact
relates  to information supplied by the indemnifying party or by the indemnified
party  and  the  parties' relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission, provided, that the
maximum  liability  of  a  Holder  shall  be  limited  to an amount equal to the
proceeds to such holder of the Registrable Securities Sold in such registration.
No  person  or entity guilty of fraudulent misrepresentation (within the meaning
of  Section  11(f)  of the Securities Act) will be entitled to contribution from
any  person  or  entity who was not guilty of such fraudulent misrepresentation.

               2.6 EXCHANGE ACT REGISTRATION. With a view to making available to
the Holders the  benefits  of Rule 144  promulgated  under the Act and any other
rule or regulation of the Securities Exchange Commission (the "SEC") that may at
any time permit a Holder to sell securities of the Company to the public without
registration, the Company agrees to:

                    (a) make and keep  public  information  available,  as those
     terms are understood and defined in SEC Rule 144, at all times after ninety
     (90) days  after the  effective  date of the first  registration  statement
     filed by the Company  for the  offering  of its  securities  to the general
     public;

                    (b) file on a timely basis with the  Securities and Exchange
     Commission all information  that the Commission may require under either of
     Section  13 or  Section  15(d) of the  Exchange  Act and,  so long as it is
     required to file such information,  take all action that may be required as
     a condition to the  availability  of Rule 144 under the  Securities Act (or
     any successor  exemptive  rule  hereinafter  in effect) with respect to the
     Company's common stock; and

                    (c)  furnish  to any Holder  forthwith  upon  request  (i) a
     written  statement by the Company as to its  compliance  with the reporting
     requirements  of  Rule  144,  (ii) a copy  of the  most  recent  annual  or
     quarterly  report of the Company as filed with the  Securities and Exchange
     Commission,  and (iii) any other  reports and  documents  that a Holder may
     reasonably  request in order to avail itself of any rule or  regulation  of
     the Securities and Exchange  Commission  allowing a Holder to sell any such
     Registrable Shares without registration.

          2.7 FURTHER OBLIGATIONS OF THE COMPANY. Whenever the Company is
required  hereunder to register Registrable Shares, it agrees that it shall also
do  the  following:

                                      -8-
<PAGE>
               (a)  Furnish  to  each   selling   Holder  such  copies  of  each
     preliminary  and final  prospectus and any other documents that such Holder
     may reasonably request to facilitate the public offering of its Registrable
     Shares;

               (b) Use its best  efforts to register or qualify the  Registrable
     Shares to be registered  pursuant to this  Agreement  under the  applicable
     securities or "blue sky" laws of such  jurisdictions  as any selling Holder
     may reasonably request;  provided,  however,  that the Company shall not be
     obligated  to qualify to do  business in any  jurisdiction  where it is not
     then so  qualified  or to take any  action  that  would  subject  it to the
     service of process in suits  other than those  arising  out of the offer or
     sale  of the  securities  covered  by  the  registration  statement  in any
     jurisdiction where it is not then so subject;

               (c) Notify each Holder of Registrable Shares covered by such
     registration  statement at any time when a prospectus  relating  thereto is
     required to be delivered  under the Act of the  happening of any event as a
     result of which the prospectus included in such registration  statement, as
     then in effect, includes an untrue statement of a material fact or omits to
     state a material  fact  required to be stated  therein or necessary to make
     the  statements  therein not  misleading in the light of the  circumstances
     then existing and then use its reasonable best efforts to correct  promptly
     such statement or omission;

               (d) Cause all such Registrable Shares registered  hereunder to be
     listed on each securities  exchange on which similar  securities  issued by
     the  Company are then listed if such  listing is then  permitted  under the
     rules of the exchange;

               (e) Provide a transfer  agent and registrar  for all  Registrable
     Shares  registered  pursuant  hereunder  and a CUSIP  number  for all  such
     Registrable  Shares, in each case not later than the effective date of such
     registration;

               (f) In the event of any underwritten public offering,  enter into
     and perform its obligations under an underwriting  agreement,  in usual and
     customary form, with the managing underwriter of such offering. Each Holder
     participating  in such  underwriting  shall also enter into and perform its
     obligations under such an agreement;

               (g) Furnish, at the request of any Holder requesting registration
     of  Registrable  Shares  pursuant to this  Section 2, on the date that such
     Registrable Shares are delivered to the underwriters for sale in connection
     with a  registration  pursuant to this  Section 2, if such  securities  are
     being sold through underwriters,  or, if such securities are not being sold
     through  underwriters,  on the date that the  registration  statement  with
     respect to such securities becomes effective:

                                      -9-
<PAGE>
                    (i) an opinion, dated such date, of the counsel representing
          the  Company  for the  purposes  of  such  registration,  in form  and
          substance as is customarily  given to  underwriters in an underwritten
          public  offering,  addressed to the  underwriters,  if any, and to the
          Holders requesting registration of Registrable Shares; and

                    (ii) "comfort"  letters signed by the Company's  independent
          public  accountants  who have  examined and reported on the  Company's
          financial  statements included in the registration  statement,  to the
          extent  permitted  by the  standards  of  the  American  Institute  of
          Certified Public Accountants,  covering substantially the same matters
          with  respect  to  the  registration  statement  (and  the  prospectus
          included  therein)  and (in the  case  of the  accountants'  "comfort"
          letters)  with  respect  to  events  subsequent  to  the  date  of the
          financial  statements,  as are  customarily  covered  in  opinions  of
          issuer's counsel and in accountants'  "comfort"  letters  delivered to
          the underwriters in underwritten  public offerings of securities,  but
          only if and to the extent  that the  Company is required to deliver or
          cause  the  delivery  of such  opinion  or  "comfort"  letters  to the
          underwriters in an underwritten public offering of securities;

               (h)  Permit  each   selling   Holder  or  its  counsel  or  other
     representatives upon the receipt of commercially reasonable confidentiality
     agreements, to inspect and copy such corporate documents and records as may
     reasonably be requested by them; and

               (i) Furnish to each selling Holder, upon request, a copy of all
     documents  filed  and  all  correspondence  from or to the  Securities  and
     Exchange   Commission   in  connection   with  any  such  offering   unless
     confidential  treatment  of such  information  has  been  requested  of the
     Securities and Exchange Commission.

          2.8 EXPENSES. In the case of a registration under this Agreement, the
Company  shall bear all costs and expenses of each such registration, including,
but  not  limited  to,  printing,  legal and accounting expenses, Securities and
Exchange  Commission  filing  fees  and  "blue sky" fees and expenses; provided,
however,  that the Company shall have no obligation to pay or otherwise bear (i)
any  portion  of  the  fees  or  disbursements  of more than one counsel for the
Holders  in  connection with the registration of their Registrable Shares, which
in no event shall exceed a reasonable fee, (ii) any portion of the underwriter's
commissions  or  discounts  attributable to the Registrable Shares being offered
and  sold by the Holders of Registrable Shares, or (iii) any of such expenses if
the payment of such expenses by the Company is prohibited by the laws of a state
in  which  such  offering  is  qualified  and  only to the extent so prohibited.

                                      -10-
<PAGE>
          2.9 TRANSFER OF REGISTRATION RIGHTS. A Holder may assign, transfer or
participate  all  or any portion of the rights hereunder; provided that (1) such
transfers  comply  with  all  applicable  law, (2) no such transfer is made to a
competitor  of the Company (unless all common and preferred stock in the Company
is  being  transferred  to such competitor in such transaction), and (3) no such
transfer  is  made  to a third party which the Board of Directors of the Company
determines  in  good faith would be detrimental to the Company as a shareholder;
provided that (i) any such permitted transferee agrees to become a party to this
Agreement,  and  (ii)  such  transfer  is  exempt  from  registration  under the
Securities  Act  of  1933.  For purposes of this Section 2.9, "competitor of the
Company"  means  a  company  whose  principal  lines  of  business  include
business-to-business  electronic procurement services.  The third proviso of the
preceding  sentence  shall not apply to a transfer made to an affiliated fund or
entity  or  a partner or member of any Holder which has that relationship with a
Holder at the time of the Closing or to a family trust or descendant of any such
person.

          2.10 TERMINATION OF REGISTRATION RIGHTS. The obligations of the
Company  to  register any Holder's Registrable Shares pursuant to this Section 2
shall  terminate  five  (5)  years after the date hereof or, with respect to any
Holder,  at such time as all of the Registrable Securities of such Holder may be
sold  within  a three month period under Securities and Exchange Commission Rule
144.

          2.11 NO SUPERIOR RIGHTS. The Company shall not (i) enter into any
agreement  granting registration rights with respect to its securities which are
inconsistent  with or superior to the rights granted to the Purchasers hereunder
or  (ii)  amend  any  agreement  in  effect  as  of the date hereof which grants
registration  rights  to  any  other  person  or  entity  so  as  to  cause such
registration  rights  to be inconsistent with those granted to the Purchasers of
Registrable  Securities  hereunder.

     3.     ASSIGNABILITY.  Subject to the restrictions on transfer set forth in
Section  2.9,  this  Agreement shall be binding upon and inure to the benefit of
the  respective  heirs,  successors  and  assigns  of  the  parties  hereto.

     4.     LAW.  This  Agreement  shall  be  governed  by  and  construed  in
accordance  with the laws of the State of California; provided, however, that if
any  California law or laws require or permit the application of the laws of any
other  jurisdiction  to  this  Agreement,  such  California law or laws shall be
disregarded  with  the effect that the remaining laws of the State of California
shall  nonetheless  apply.

                                      -11-
<PAGE>
     5.     AMENDMENT.  Any modification, amendment, or waiver of this Agreement
or  any  provision  hereof,  either  retroactively or prospectively, shall be in
writing  and executed by the Company and the Holders of not less than a majority
of the Registrable Shares which shall be binding upon all of the parties hereto;
provided  however,  that  any  amendment,  modification  or  waiver  that  would
adversely  affect  the  rights  hereunder  of  any  Purchaser, without similarly
affecting  the rights hereunder of all of the Purchasers, shall not be effective
as  to  such  Purchaser  without  such  Purchaser's  prior  written  consent

     6.     COUNTERPARTS.  This  Agreement  may  be  executed  in  any number of
counterparts,  each  of  which  shall  be an original, but all of which together
shall  constitute  one  instrument.

     7.     NOTICE.  Any  notices and other communications required or permitted
under  this  Agreement shall be effective if in writing and delivered personally
or  sent by telecopier, nationally recognized overnight courier or registered or
certified  mail,  postage  prepaid,  addressed  as  follows:

     If  to  the  Purchasers,  to:  The  names  and  addresses
                                    set  forth  on  Exhibit  A  hereto.

     If  to  the  Company,  to:     Vsource,  Inc.
                                    5740  Ralston  Street,  Suite  110
                                    Ventura,  California  93003
                                    Attention:  Robert  C.  McShirley
                                    Facsimile:  (805)  677-6740

          with  a  copy  to:        Sheppard,  Mullin,  Richter  & Hampton LLP
                                    650  Town  Center  Drive,  4th  Floor
                                    Costa  Mesa,  California  92675
                                    Attention:  John  J.  Giovannone,  Esq.
                                    Facsimile:  (714)  513-5130

          Unless   otherwise   specified   herein,   such   notices   or   other
communications shall be deemed effective (a) on the date delivered, if delivered
personally,  (b) two  business  days after  being  sent,  if sent by  nationally
recognized  overnight courier, (c) one business day after being sent, if sent by
telecopier with  confirmation of good  transmission  and receipt,  and (d) three
business days after being sent, if sent by registered or certified mail, postage
prepaid.  Each of the parties  herewith  shall be  entitled  to specify  another
address by giving notice as aforesaid to each of the other parties hereto.

                                      -12
<PAGE>
     8.     SEVERABILITY.  In  case  any  provision  of  this Agreement shall be
invalid,  illegal,  or  unenforceable,  it  shall, to the extent practicable, be
modified  so  as to make it valid, legal and enforceable and to retain as nearly
as  practicable  the  intent  of  the  parties;  and the validity, legality, and
enforceability  of  the remaining provisions shall not in any way be affected or
impaired  thereby.

                                      -13-
<PAGE>
[This  is page 13 to the Registration Rights Agreement to which Vsource, Inc., a
Nevada  corporation,  and  the  Purchasers  set  forth  below  are  parties:]

     IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights
Agreement to be executed by their respective officers thereunto duly authorized,
as  of  the  date  first  above  written.

                                    VSOURCE,  INC.

                                    By:     ________________________________
                                            Robert  C.  McShirley
                                           Chief  Executive  Officer

                                     "PURCHASER"

                                    _________________________________________

                                    _________________________________________

                                      -13-
<PAGE>
                                    EXHIBIT  A

NAME  AND  ADDRESS
      OF                                                              PURCHASE
   PURCHASER                                   # OF SHARES              PRICE
================================================================================

                                    EXHIBIT  A
<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]