Document:

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                                                                     EXHIBIT 4.3

                                RECRUITSOFT, INC.

              SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

                                OCTOBER 21, 2003

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                                TABLE OF CONTENTS

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1.  Registration Rights........................................................................................      1

    1.1      Definitions.......................................................................................      1
    1.2      Piggyback Registration Rights.....................................................................      2
    1.3      Required Registration.............................................................................      4
    1.4      Registration on Form S-3..........................................................................      5
    1.5      Registration Procedures...........................................................................      6
    1.6      Furnish Information...............................................................................      8
    1.7      Expenses of Registration..........................................................................      8
    1.8      No Delay of Registration..........................................................................      8
    1.9      Indemnification...................................................................................      8
    1.10     Reports under Securities Exchange Act of 1934.....................................................     10
    1.11     Assignment of Registration Rights.................................................................     11
    1.12     "Market Stand-Off" Agreement......................................................................     11
    1.13     Registrations outside U...........................................................................     12
    1.14     Termination of Registration Rights................................................................     12

2.  Right of First Refusal on Company Issuance.................................................................     12

    2.1      Right of First Refusal............................................................................     12
    2.2      Over-Allotment Option.............................................................................     12
    2.3      Pro Rata Share....................................................................................     12
    2.4      New Securities....................................................................................     13
    2.5      Procedure.........................................................................................     13
    2.6      Waiver of Right of First Refusal..................................................................     15
    2.7      Termination and Assignment........................................................................     15
    2.8      Company Right to Terminate Issuance of New Securities.............................................     15

3.  Restrictions on Transfer of Shares.........................................................................     15

    3.1      Restrictions on Transfer..........................................................................     15
    3.2      Restricted Shares.................................................................................     16
    3.3      Sales to Competitors..............................................................................     16
    3.4      Right of First Refusal on Communicade's Series B Preferred Stock..................................     16
    3.5      Termination and Nonassignment.....................................................................     18

4.  Right of First Refusal on Restricted Shares................................................................     19

    4.1      General...........................................................................................     19
    4.2      Exceptions........................................................................................     19
    4.3      Investors' Right of First Refusal on Restricted Shares............................................     20
    4.4      Termination and Nonassignment.....................................................................     20

5.  Right of Co-Sale Respecting Shares.........................................................................     20

    5.1      Grant; Notice.....................................................................................     20
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                               TABLE OF CONTENTS
                                  (CONTINUED)

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    5.2      Right of Co-Sale...................................................................................    21
    5.3      Transfer of Shares upon Failure to Exercise Right of Co-Sale.......................................    22
    5.4      Binding Effect of Right of Co-Sale.................................................................    22
    5.5      Termination of Right of Co-Sale....................................................................    22
    5.6      Delivery Requirements..............................................................................    22
    5.7      Exceptions.........................................................................................    22
    5.8      Legend.............................................................................................    23
    5.9      Conditions to Exercise of the Investors' Rights....................................................    23
    5.10     Assignment of Right of Co-Sale.....................................................................    23

6.  Covenants of the Company....................................................................................    23

    6.1      Delivery of Financial Statements...................................................................    23
    6.2      Inspection.........................................................................................    24
    6.3      Board of Directors.................................................................................    24
    6.4      Negative Covenants.................................................................................    26
    6.5      Termination of Covenants...........................................................................    27

7.  Miscellaneous...............................................................................................    27

    7.1      Successors and Assigns.............................................................................    27
    7.2      Governing Law......................................................................................    27
    7.3      Counterparts.......................................................................................    27
    7.4      Titles and Subtitles...............................................................................    27
    7.5      Notices............................................................................................    27
    7.6      Expenses...........................................................................................    28
    7.7      Amendments and Waivers.............................................................................    28
    7.8      Aggregation of Stock...............................................................................    28
    7.9      Severability.......................................................................................    28
    7.10     Entire Agreement...................................................................................    28
    7.11     Dispute Resolution.................................................................................    28
    7.12     Remedies...........................................................................................    29
    7.13     No Inconsistent Agreements.........................................................................    29
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                                RECRUITSOFT, INC.

              SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

         THIS SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this
"Agreement") is made as of the 21st day of October 2003, by and among
Recruitsoft, Inc., a Delaware corporation (the "Company") and the Investors
listed on Exhibit A hereto (collectively, the "Investors").

                                    RECITALS

         WHEREAS, the Company, Kangaroo Acquisition Corporation and White Amber,
Inc. ("White Amber") are entering into an Agreement and Plan of Merger (the
"Merger Agreement") of even date herewith;

         WHEREAS, in order to induce certain stockholders of White Amber (the
"Series D Holders") to exchange their shares of White Amber capital stock for
shares of the Company's Series D Preferred Stock pursuant to the Merger
Agreement, the Company and certain of its stockholders (the "Prior Holders")
desire that the Company grant to the Series D Holders listed in Exhibit A
certain of the registration and other rights set forth herein; and

         WHEREAS, all Investors desire that this Agreement shall govern the
registration and other rights of all Investors.

         NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

         1.       Registration Rights. The Company covenants and agrees as
follows:

                  1.1      Definitions. For purposes of this Section 1:

                           (a)      The term "1934 Act" shall mean the
Securities Exchange Act of 1934, as amended.

                           (b)      The term "Act" means the Securities Act of
1933, as amended.

                           (c)      The term "Holder" means any person owning or
having the right to acquire Registrable Securities or any permitted assignee
thereof pursuant to the terms of Section 1.11.

                           (d)      The term "Ownership Percentage" means and
includes, with respect to each Holder of Registrable Securities requesting
inclusion of Registrable Securities in an offering pursuant to this Agreement,
the number of Registrable Securities held by such Holder divided by the
aggregate of all Registrable Securities held by all Holders requesting
registration in such offering.

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                           (e)      The term "Public Offering" means and
includes the closing of a firm commitment underwritten public offering pursuant
to an effective registration statement under the Act, covering the offer and
sale of securities to the general public for the account of the Company.

                           (f)      The terms "register", "registered" and
"registration" refer to a registration effected by preparing and filing a
registration statement or similar document in compliance with the Act, and the
declaration or ordering of effectiveness of such registration statement or
document.

                           (g)      The term "Registrable Securities" means (i)
Class A Common Stock issuable or issued upon conversion of the Company's Series
A Preferred Stock or the exercise of exchange rights of the Class A or Class B
preferred exchangeable shares of 9090-5415 Quebec Inc., as applicable and as
specified on Exhibit A hereto; (ii) Class A Common Stock issuable or issued upon
conversion of the Company's Series B Preferred Stock as specified on Exhibit A
hereto; (iii) Class A Common Stock issuable or issued upon conversion of the
Company's Series C Preferred Stock; (iv) Class A Common Stock issuable or issued
upon conversion of the Series D Preferred Stock (the "Series D Shares") acquired
by the Series D Holders pursuant to the Merger Agreement; provided, however,
that the term "Registrable Securities" shall not include the Series D Shares for
purposes of Sections 1.3 and 1.4 and provided further that the holders of Series
D Shares shall not be deemed to be Investors for purposes of Section 5; (v) the
additional shares of Class A Common Stock currently held by certain Investors as
specified on Exhibit A hereto; (vi) any Class A Common Stock issued (or issuable
upon conversion or exercise of any warrant, right or other security which is
issued) to the Bain Investors pursuant to Section 2 in connection with the
Company's issuance of securities in a firm commitment underwritten Public
Offering covering the offer and sale of securities of the Company; and (vii) any
Class A Common Stock of the Company issued as (or issuable upon the conversion
or exercise of any warrant, right or other security which is issued as) a
dividend or other distribution with respect to, or in exchange for or in
replacement of, the foregoing, excluding in all cases, however, any shares sold
or transferred by a person in a transaction in which the rights under this
Section 1 are not assigned.

                           (h)      The term "SEC" shall mean the Securities and
Exchange Commission.

                           (i)      The term "Qualified Public Offering" shall
mean a firm commitment underwritten public offering by the Company pursuant to a
registration statement on Form S-1 under the Act (or equivalent), with a price
per share of at least $1.4721 (as adjusted for subdivisions, combinations and
stock dividends with respect to such shares) and net proceeds to the Company of
at least Twenty-five Million Dollars ($25,000,000).

                  1.2      Piggyback Registration Rights.

                           (a)      Registration Rights. If at any time the
Company shall determine to register under the Act (including pursuant to a
demand of any stockholder of the Company exercising registration rights other
than pursuant to Section 1.3 hereof) any of its common stock (other than a
registration relating solely to the sale of securities to participants in a
Company employee benefits plan, a registration on any form which does not
include substantially the same

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information as would be required to be included in a registration statement
covering the sale of Registrable Securities or a registration in which the only
common stock being registered is common stock issuable upon conversion of debt
securities which are also being registered), it shall send to each Holder
written notice of such determination and, if within fifteen (15) days after
receipt of such notice, such Holder shall so request in writing, the Company
shall use its commercially reasonable best efforts to include in such
registration statement all of the Registrable Securities that such Holder
requests to be registered.

                           (b)      Underwriting. If the registration of which
the Company gives notice is for a registered public offering involving an
underwriting, the Company shall so advise the Holders as part of the written
notice given pursuant to Section 1.2(a). In such event, the right of any Holder
to registration pursuant to this Section 1.2 shall be conditioned upon such
Holder's participation in such underwriting and the inclusion of Registrable
Securities in the underwriting to the extent provided herein. All Holders
proposing to distribute their Registrable Securities through such underwriting
shall (together with the Company and the other holders distributing their
securities through such underwriting) enter into an underwriting agreement in
customary form with the managing underwriter selected for such underwriting by
the Company. Notwithstanding any other provision of this Section 1.2, if the
managing underwriter determines in its sole discretion that marketing factors
require a limitation of the number of shares to be underwritten, the managing
underwriter may limit on a pro rata basis the Registrable Securities to be
included in such registration (i) in the case of the Company's initial Public
Offering to an amount equal to zero, and (ii) in the case of any other Public
Offering to an amount not less than thirty percent (30%) of the total number of
securities to be included in the registration. The Company shall so advise all
Holders distributing their Registrable Securities through such underwriting, and
the number of shares of Registrable Securities and other securities that may be
included in the registration and underwriting on behalf of persons other than
the Company shall be allocated in the following order of priority (A) first, to
the Company, (B) second, among the Holders requesting to sell Registrable
Securities according to each Holder's Ownership Percentage, and (C) third, to
the extent additional securities may be included therein, pro rata among the
other selling stockholders according to the total amount of securities owned by
each such stockholder; provided, however, that the number of shares of
Registrable Securities to be included in such underwriting shall not be reduced
unless all other securities (other than securities of the Company) are first
entirely excluded from the underwriting. This order of priority cannot be
altered unless approved by the Holders of a majority of all outstanding shares
of the Registrable Securities. To facilitate the allocation of shares in
accordance with the above provisions, the Company may round the number of shares
allocated to any Holder or other holder to the nearest 100 shares.

                  If any of the Holders disapproves of the terms of any such
underwriting, he may elect to withdraw therefrom by written notice to the
Company and the managing underwriter.

                           (c)      Right to Terminate Registration. The Company
shall have the right to terminate or withdraw any registration initiated by it
under this Section 1.2 prior to the effectiveness of such registration whether
or not any Holder has elected to include Registrable Securities in such
registration.

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                  1.3      Required Registration.

                           (a)      On as many as but not more than two
occasions in the case of the Holders of Series C Preferred Stock and one
occasion in the case of Holders of Series B Preferred Stock, not earlier than
the earlier of either (i) one hundred eighty (180) days after the completion by
the Company of its initial Public Offering or (ii) January 1, 2004, the Holders
of at least thirty percent (30%) of the Series C Preferred Stock then
outstanding or the shares of Class A Common Stock issued on conversion thereof,
or the Holders of at least 30% of the Series B Preferred Stock then outstanding
or the shares of Class A Common Stock issued on conversion thereof, may require
the Company, at the Company's expense, to register some or all of such Holders'
Registrable Securities, provided that each such registration covers an offering
with an aggregate offering price that is not less than $5,000,000. Such
Holder(s) shall notify the Company in writing that it or they intend to offer or
cause to be offered for public sale all or any portion of the Registrable
Securities, and within ten (10) days of the receipt after such notice, the
Company will so notify all holders of Registrable Securities.

                           (b)      Upon written request of any Holder given
within thirty (30) days after the receipt by such Holder from the Company of
such notification, the Company will use its commercially reasonable best efforts
to cause all of the Registrable Securities that may be requested by any Holder
thereof (including the Holder or Holders giving the initial notice of intent to
offer (each an "Initiating Holder" and collectively the "Initiating Holders"))
to be registered under the Act as expeditiously as possible. The Company shall
file a registration statement covering the Registrable Securities so requested
to be registered as soon as practical, but in any event within ninety (90) days
after receipt by the Company of the request of the Initiating Holder.

                           (c)      Notwithstanding anything contained in this
Section 1.3 or Section 1.4 to the contrary, if the Company furnishes to the
Holders requesting any registration pursuant to such sections a certificate
signed by the President of the Company stating that, in the good faith judgment
of the Board of Directors of the Company, such registration would be seriously
detrimental to the Company and that it is in the best interests of the Company
to defer the filing of a registration statement, then the Company shall have the
right to defer the filing of a registration statement with respect to such
offering for a period of not more than ninety (90) days from receipt by the
Company of the request by the Initiating Holder; provided, however, that the
Company may not exercise such right more than once in any twelve-month period.

                           (d)      If the Initiating Holders intend to
distribute the Registrable Securities covered by their request by means of an
underwriting, they shall so advise the Company as part of their request and the
Company shall include such information in the written notice referred to above.

                           (e)      If the registration to be effected pursuant
to this Section 1.3 is a registration in connection with the Company's initial
Public Offering, the underwriter shall be selected by the Company and shall be
reasonably acceptable to the Holders of a majority of the Registrable Securities
included in such registration. In all subsequent registrations effected pursuant
to this Section 1.3, the underwriter shall be selected by the Holders of a
majority of the Registrable Securities included in such registration and shall
be reasonably acceptable to the Company. In any

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event, the right of any Holder to include his, her or its Registrable Securities
in such registration shall be conditioned upon such Holder's participation in
such underwriting and the inclusion of such Holder's Registrable Securities in
the underwriting to the extent provided herein. All Holders proposing to
distribute their securities through such underwriting shall enter into an
underwriting agreement in customary form with the underwriters selected for such
underwriting.

                           (f)      Notwithstanding the foregoing, if the
managing underwriter advises the Holders of Registrable Securities included in
such registration in writing that marketing factors require a limitation of the
number of shares to be underwritten, then the Initiating Holders shall so advise
all Holders of Registrable Securities which would otherwise be underwritten
pursuant hereto, and the number of shares of Registrable Securities that may be
included in the underwriting shall be allocated among such Holders according to
each such Holder's Ownership Percentage. (g) Notwithstanding the foregoing, the
Company shall not be obligated to effect, or to take any action to effect, any
registration pursuant to this Section 1.3: (i) after the Company has effected
two (2) registrations in the case of the Holders of Series C Preferred Stock or
the shares of Class A Common Stock issued on conversion of the Series C
Preferred Stock, and one registration in the case of the Holders of Series B
Preferred Stock or the shares of Class A Common Stock issued on conversion of
the Series B Preferred Stock, pursuant to this Section 1.3 and such
registrations have been declared or ordered effective and kept effective for the
period set forth in Section 1.5(a) and the Company has registered at least 80%
of the total number of Registrable Securities requested to be included therein,
(ii) during the period starting with the date forty-five (45) days prior to the
Company's good faith estimate of filing of, and ending on a date one hundred
eighty (180) days after the effective date of, a registration statement filed
under the Act (other than a registration of securities in a Rule 145 transaction
or relating solely to the sale of securities to participants in a Company stock
plan), provided that the Company is actively employing in good faith its
commercially reasonable best efforts to cause such registration statement to
become effective and provided further that the Holders were given the
opportunity to fully participate in such registration pursuant to, and the
Company otherwise complied with its obligations under, Section 1.2 above, or
(iii) if the Company delivers notice to the Holders of Registrable Securities
within 30 days of any registration request of the Company's intent to file a
registration statement for the initial Public Offering within 45 days of such
notice, or (iv) if the Initiating Holders propose to dispose of shares of
Registrable Securities that may be immediately registered on Form S-3 pursuant
to a request made pursuant to Section 1.4 below; provided that in such
situation, the Company shall include in the Form S-3 registration statement any
information reasonably requested to be included in such registration, if any.

                  1.4      Registration on Form S-3. Notwithstanding Section
1.3, in case the Company shall receive from a Holder or Holders a written
request or requests that the Company effect a registration on Form S-3 (or any
similar form promulgated by the SEC) and any related qualification or compliance
with respect to all or a part of the Registrable Securities owned by such Holder
or Holders, the Company will, not more than twice in any year (365-day period):

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                           (a)      promptly give written notice of the proposed
registration, and any related qualification or compliance, to all other Holders;
and

                           (b)      as soon as practicable, use its commercially
reasonable best efforts to effect such registration and all such qualifications
and compliances as may be so requested and as would permit or facilitate the
sale and distribution of all or such portion of such Holder's or Holders'
Registrable Securities as are specified in such request, together with all or
such portion of the Registrable Securities of any other Holder or Holders
joining in such request as are specified in a written request given within
twenty (20) days after receipt of such written notice from the Company;
provided, however, that the Company shall not be obligated to effect any such
registration, qualification or compliance, pursuant to this Section 1.4: (1) if
Form S-3 is not available for such offering by the Holders; (2) if the Company
shall furnish to the Holders a certificate signed by the President of the
Company stating that in the good faith judgment of the Board of Directors of the
Company, it would be seriously detrimental to the Company and its stockholders
for such Form S-3 Registration to be effected at such time, in which event the
Company shall have the right to defer the filing of the Form S-3 registration
statement for a period of not more than ninety (90) days after receipt of the
request of the Holder or Holders under this Section 1.4; provided, however, that
the Company shall not utilize this right more than once in any twelve month
period; (3) if such Form S-3 registration covers an offering with reasonably
anticipated aggregate proceeds of less than $500,000; or (4) if the Company has
effected two (2) registrations pursuant to this Section 1.4 within the past
twelve (12) months and such registrations have been declared or ordered
effective.

                           (c)      In the event the Company is ineligible to
use Form S-3 under General Instruction I.A. of such form due to actions strictly
within the Company's control, the Company will use its commercially reasonable
best efforts to effect such registration on Form S-1 upon written request from
the Holders of a majority of the Registrable Securities requested to be included
in such registration, subject to the provisions under Section 1.3 of this
Agreement, and such registration on Form S-1 shall not count as a registration
effected pursuant to Section 1.3.

                           (d)      Subject to the foregoing, the Company shall
use its commercially reasonable best efforts to file a registration statement
covering the Registrable Securities and other securities so requested to be
registered as soon as practicable after receipt of the request or requests of
the Holders. Registrations effected pursuant to this Section 1.4 shall not be
counted as demands for registration effected pursuant to Sections 1.2 or 1.3,
respectively. If the Holders giving the initial notice under this Section 1.4
propose to offer the Registrable Securities by means of an underwriting, the
terms of Sections 1.3(d) and (e) shall apply.

                  1.5      Registration Procedures. Whenever required under this
Section 1 to effect the registration of any Registrable Securities, the Company
shall, as expeditiously as reasonably possible:

                           (a)      Prepare and file with the SEC a registration
statement with respect to such Registrable Securities and use its reasonable
best efforts to cause such registration statement to become effective and keep
such registration statement effective for a period of one hundred eighty

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(180) days or, if earlier, until the distribution contemplated in the
Registration Statement has been completed;

                           (b)      Prepare and file with the SEC such
amendments and supplements to such registration statement and the prospectus
used in connection with such registration statement as may be necessary to
comply with the provisions of the Act;

                           (c)      Furnish to the Holders participating in such
registration such numbers of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Act, and such other
documents as they may reasonably request in order to facilitate the public
offering of Registrable Securities owned by them;

                           (d)      Use its reasonable best efforts to register
and qualify the securities covered by such registration statement under such
other securities or Blue Sky laws of such jurisdictions as shall be reasonably
requested by the Holders provided that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service or process in any such state or jurisdictions;

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

                           (f)      Use its reasonable best efforts to cooperate
with the Holders in the disposition of the securities covered by such
registration statement, including without limitation in the case of an
underwritten offering pursuant to Section 1.3 causing key executives of the
Company to participate under the direction of the managing underwriter in a
"road show" scheduled by such managing underwriter in such locations and of such
duration as in the judgment of such managing underwriter are appropriate for
such underwritten offering;

                           (g)      Use its reasonable best efforts to obtain
all legal opinions, auditors' consents and comfort letters and experts
cooperation as may be required, including furnishing to each Holder
participating in such registration on the date that such Holder's Registrable
Securities are delivered to the underwriters for sale, or if such securities are
not being sold through underwriters on the date that the registration statement
with respect to such Registrable Securities becomes effective, (i) an opinion,
dated as of such date, of counsel for the Company and (ii) a "cold comfort"
letter, dated as of such date, signed by the independent certified public
accountants of the Company, in each case 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 participating in such registration;

                           (h)      Notify each Holder of Registrable Securities
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

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<PAGE>

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;

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

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

                  1.6      Furnish Information. It shall be a condition
precedent to the obligations of the Company to take any action pursuant to this
Section 1 with respect to the Registrable Securities of any selling Holder that
such Holder shall furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of
such securities as shall be required to effect the registration of such Holder's
Registrable Securities.

                  1.7      Expenses of Registration. The Company shall bear and
pay all expenses incurred in connection with any registration, filing or
qualification of Registrable Securities with respect to the registrations
pursuant to Sections 1.2, 1.3 and 1.4 for each Holder (which right may be
assigned as provided in Section 1.11), including (without limitation) all
registration, filing, and qualification fees, printers and accounting fees
relating or apportionable thereto and the fees and disbursements of counsel for
the Company and no more than one counsel for all the selling Holders, but
excluding underwriting discounts and commissions relating to Registrable
Securities.

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

                  1.9      Indemnification. In the event any Registrable
Securities are included in a registration statement under this Section 1:

                           (a)      To the extent permitted by law, the Company
will indemnify and hold harmless each Holder, any underwriter (as defined in the
Act) for such Holder and each person, if any, who controls such Holder or
underwriter within the meaning of the Act or the 1934 Act, against any losses,
claims, damages, or liabilities (joint or several) to which they may become
subject under the Act, the 1934 Act or other federal or state law, insofar as
such losses, claims, damages, or liabilities (or actions in respect thereof)
arise out of or are based upon any of the following statements, omissions or
violations (collectively a "Violation"): (i) any untrue statement or alleged
untrue statement of a material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or alleged
violation by the Company of the Act, the 1934 Act, any state securities law or
any rule or regulation promulgated under the Act, the 1934 Act or any state
securities law; and the Company will pay to

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each such Holder, underwriter or controlling person any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability, or action, as such expenses are incurred;
provided, however, that the indemnity agreement contained in this subsection
1.9(a) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability, or action if such settlement is effected without the consent
of the Company (which consent shall not be unreasonably withheld), nor shall the
Company be liable in any case for any such loss, claim, damage, liability, or
action to the extent that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished by
any such Holder, underwriter or controlling person for use in such registration.

                           (b)      To the extent permitted by law, each Holder
will indemnify and hold harmless the Company, each of its directors, each of its
officers who has signed the registration statement, each person, if any, who
controls the Company within the meaning of the Act, any underwriter, any other
Holder selling securities in such registration statement and any controlling
person of any such underwriter or other Holder, severally but not jointly,
against any losses, claims, damages, or liabilities (joint or several) to which
any of the foregoing persons may become subject, under the Act, the 1934 Act or
other federal or state law, insofar as such losses, claims, damages, or
liabilities (or actions in respect thereto) arise out of or are based upon any
Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information
furnished by such Holder; and each such Holder will pay any legal or other
expenses reasonably incurred by any person intended for use in such registration
to be indemnified pursuant to this subsection 1.9(b), in connection with
investigating or defending any such loss, claim, damage, liability, or action;
provided, however, that the indemnity agreement contained in this subsection
1.9(b) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the consent
of the Holder, which consent shall not be unreasonably withheld; provided, that,
in no event shall any indemnity by any Holder under this subsection 1.9(b)
exceed the net proceeds from the offering received by such Holder.

                           (c)      Promptly after receipt by an indemnified
party under this Section 1.9 of notice of the commencement of any action
(including any governmental action), such indemnified party will, if a claim in
respect thereof is to be made against any indemnifying party under this Section
1.9, deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in, and,
to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume the defense thereof with one
counsel mutually satisfactory to the parties; provided, however, that an
indemnified party (together with all other indemnified parties which may be
represented without conflict by one counsel) shall have the right to retain one
separate counsel, with the fees and expenses to be paid by the indemnifying
party, if representation of such indemnified party by the counsel retained by
the indemnifying party would be inappropriate due to actual or potential
differing interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of
any such action shall not relieve such indemnifying party of any liability to
the indemnified party under this Section 1.9 unless and to the extent that the
failure to deliver notice is materially prejudicial to its ability to defend
such action. Any omission to so deliver written notice to the

                                                                             -9-

<PAGE>

indemnifying party will not relieve it of any liability that it may have to any
indemnified party otherwise than under this Section 1.9.

                           (d)      If the indemnification provided for in this
Section 1.9 is held by a court of competent jurisdiction to be unavailable to an
indemnified party with respect to any loss, 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; provided, that, in no event shall any contribution by any Holder
under this subsection 1.9(d) exceed the net proceeds from the offering received
by such Holder. 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.

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

                           (f)      The obligations of the Company and Holders
under this Section 1.9 shall survive the completion of any offering of
Registrable Securities in a registration statement under this Section 1, and
otherwise.

                  1.10     Reports under Securities Exchange Act of 1934. With a
view to making available to the Holders the benefits of Rule 144 promulgated
under the Act ("Rule 144") and any other rule or regulation of the SEC that may
at any time permit a Holder to sell securities of the Company to the public
without registration or pursuant to a registration on Form S-3, the Company
agrees to:

                           (a)      make and keep public information available,
as those terms are understood and defined in 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 with the SEC in a timely manner all
reports and other documents required of the Company under the Act and the 1934
Act; and

                           (c)      furnish to any Holder, so long as the Holder
owns any Registrable Securities, forthwith upon request (i) a written statement
by the Company that it has complied with the reporting requirements of Rule 144
(at any time after ninety (90) days after the effective date of

                                                                            -10-

<PAGE>

the first registration statement filed by the Company), the Act and the 1934 Act
(at any time after it has become subject to such reporting requirements), or
that it qualifies as a registrant whose securities may be resold pursuant to
Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent
annual or quarterly report of the Company and such other reports and documents
so filed by the Company, and (iii) such other information as may be reasonably
requested in availing any Holder of any rule or regulation of the SEC which
permits the selling of any such securities without registration or pursuant to
such form.

                  1.11     Assignment of Registration Rights. The rights to
cause the Company to register Registrable Securities pursuant to this Section 1
may be assigned (but only with all related obligations) by a Holder to a
transferee or assignee of such securities who, after such assignment or
transfer, holds at least five hundred thousand (500,000) shares of Registrable
Securities (subject to appropriate adjustment for stock splits, dividends,
combinations and other recapitalizations), provided: (a) the Company is, within
a reasonable time before such transfer, furnished with written notice of the
name and address of such transferee or assignee and the securities with respect
to which such registration rights are being assigned; (b) such transferee or
assignee agrees in writing to be bound by and subject to the terms and
conditions of this Agreement, including without limitation the provisions of
Section 1.12 below; and (c) such assignment shall be effective only if
immediately following such transfer the further disposition of such securities
by the transferee or assignee is restricted under the Act. For the purposes of
determining the number of shares of Registrable Securities held by a transferee
or assignee of a holder of Registrable Securities, (i) the holdings of
affiliated partnerships, limited liability companies and other entities and
their constituent or retired partners or members or limited partners
(collectively, "Affiliated Persons"), and (ii) the holdings of spouses,
ancestors, lineal descendants and siblings who acquire Registrable Securities by
gift, will or intestate succession (collectively, "Family Members"), shall in
each case be aggregated together, provided that all assignees and transferees
who would not qualify individually for assignment of registration rights shall
designate in writing to the Company from time to time a single attorney in-fact
on behalf of the entire group of Affiliated Persons or Family Members, as the
case may be, for the purpose of exercising any rights, receiving notices or
taking any action under this Section 1.

                  1.12     "Market Stand-Off" Agreement. Each Holder hereby
agrees that, during the period of duration specified by the Company and the
underwriter of common stock or other securities of the Company, following the
effective date of a registration statement of the Company filed under the Act in
connection with its initial Public Offering, it shall not, to the extent
requested by the Company and such underwriter, directly or indirectly sell,
offer to sell, contract to sell (including, without limitation, any short sale),
grant any option to purchase or otherwise transfer or dispose of (other than to
donees or affiliated entities who agree to be similarly bound) any securities of
the Company held by it at any time during such period except Registrable
Securities included in such registration; provided, however, that:

                           (a)      all officers, directors and all holders of
more than five percent (5%) of all outstanding shares of the voting stock of the
Company enter into similar agreements; and

                                                                            -11-

<PAGE>

                           (b)      such market stand-off time period shall not
exceed one hundred eighty (180) days.

         Each Holder agrees to provide to the underwriters of the initial Public
Offering such further agreement as such underwriters may reasonably require in
connection with this market stand-off agreement. In order to enforce the
foregoing covenant, the Company may impose stop-transfer instructions with
respect to the Registrable Securities of each Holder (and the shares or
securities of every other person subject to the foregoing restriction) until the
end of the applicable period.

                  1.13     Registrations outside U. S. The Company shall not
register its securities for sale to the general public in any country other than
the United States without the prior written consent of the holders of a majority
of the Series C Preferred Stock then outstanding.

                  1.14     Termination of Registration Rights. The right of any
Holder to inclusion in any registration pursuant to Section 1.2 or to request
registration pursuant to Sections 1.3 and 1.4 shall terminate upon the earlier
of (i) five years after the date of the Company's initial Public Offering, or
(ii) such time as Rule 144 or another similar exception under the Securities Act
is available for the sale of all of such Holder's Registrable Securities within
a three (3) month period without registration and such Holder owns less than one
percent (1%) of the outstanding capital stock of the Company.

         2.       Right of First Refusal on Company Issuance.

                  2.1      Right of First Refusal. The Company hereby grants to
each Investor a right of first refusal ("Right of First Refusal") to purchase
such Investor's Pro Rata Share (as defined in Section 2.3 below) of any New
Securities (as defined in Section 2.4 below) which the Company may, from time to
time, propose to issue and sell.

                  2.2      Over-Allotment Option. In the event that the
Investors together do not purchase all of the New Securities pursuant to the
Right of First Refusal granted in Section 2.1 above, then those Investors that
shall have purchased their full Pro Rata Share of such New Securities shall also
have the right to purchase up to all of the remaining New Securities (the
"Over-Allotment Option"), in addition to such New Securities as they shall
already have elected to purchase, if they shall have so elected as provided for
in Section 2.5(a) below. If more than one Investor elects to exercise such
Investor's Over-Allotment Option, and the aggregate number of shares of New
Securities such Investors elect to purchase exceeds the aggregate number of
shares of New Securities then remaining, then the shares of New Securities to be
purchased pursuant to the Over-Allotment Option shall be divided among such
Investors according to their respective Pro Rata Share, or on such other basis
as such Investors may agree upon amongst themselves in writing.

                  2.3      Pro Rata Share. Each Investor's "Pro Rata Share," for
purposes of this Section 2, is equal to the fraction obtained by dividing (a)
the sum of the total number of shares of any (i) Common Stock, (ii) Common Stock
issuable upon conversion of any Preferred Stock and (iii) Common Stock issuable
upon exercise of any options or warrants, then held by such Investor by (b) the
sum of the total number of shares of (i) Common Stock, (ii) Common Stock
issuable upon

                                                                            -12-

<PAGE>

the conversion of Preferred Stock and (iii) Common Stock issuable upon any
exercise of any options or warrants then outstanding.

                  2.4      New Securities. Except as set forth below, "New
Securities" shall mean any shares of capital stock of the Company, including
Common Stock and Preferred Stock, whether or not now authorized, and rights,
options or warrants to purchase said shares of Common Stock or Preferred Stock
and securities of any type whatsoever that are, or may by their terms become,
convertible into said shares of Common Stock or Preferred Stock. Notwithstanding
the foregoing, "New Securities" do not include the following: (i) shares of
Common Stock issued upon the conversion of the Series A Preferred Stock; (ii)
shares of Common Stock issued upon the conversion of the Series B Preferred
Stock; (iii) shares of Common Stock issued upon the conversion of the Series C
Preferred Stock (iv) shares of Common Stock issued upon the conversion of the
Series D Preferred Stock (v) shares of Common Stock or Preferred Stock, or
options or other rights to purchase Common Stock or Preferred Stock, issued or
granted to employees, officers, directors and consultants of the Company
pursuant to any one or more employee stock incentive plans or agreements either
approved, or within an aggregate amount approved (currently 20,665,018 shares),
by the Company's Board of Directors; (vi) securities issued or issuable pursuant
to financing transactions approved by the Company's Board of Directors
including, but not limited to, equipment leases or bank lines of credit,
provided that the specific issuance is approved by the Board; (vii) shares of
Common Stock or other securities issued as a dividend or distribution on, or in
connection with a split of or recapitalization of, any of the capital stock of
the Company; (viii) shares of capital stock of the Company issued pursuant to
warrants outstanding as of the date hereof; (ix) securities issued by the
Company pursuant to the acquisition of another corporation or other entity by
the Company by merger, purchase of all or substantially all of the capital stock
or assets, or other reorganization as a result of which the stockholders of the
Company will continue to hold more than fifty percent (50%) of the voting
securities of the Company; (x) securities issued in a firm commitment
underwritten Public Offering covering the offer and sale of securities of the
Company; provided, however, that the foregoing exception shall not apply to the
Bain Investors (as defined below) unless the Bain Investors or their affiliates
are offered the right to purchase up to five percent (5%) of the securities
offered in such Public Offering at the offering price per share, net of
underwriters commissions or discounts, (xi) the 17,879,362 shares of Series A
Common Stock to be issued in exchange for the 17,879,362 class A preferred
exchangeable shares of 9090-5415 Quebec Inc., or (xii) the 6,350,400 shares of
Series A Preferred Stock to be issued in exchange for the 6,350,400 class B
preferred exchangeable shares of 9090-5415 Quebec Inc. (the shares referenced in
(xi) and (xii) above to be issued pursuant to the Articles of 9090-5415 Quebec
Inc. and the Covenant Agreement between the Company and 9090-5415 Quebec Inc.
dated November 24, 1999). The "Bain Investors" shall mean Bain Capital Venture
Fund, L.P., BCIP Associates II, BCIP Trust Associates II, BCIP Associates II-B,
BCIP Trust Associates II-B and RGIP, LLC.

                  2.5      Procedure.

                           (a)      In the event the Company proposes to
undertake an issuance of New Securities, it shall give each Investor written
notice (the "Company Notice") of its intention, describing the amount and type
of New Securities to be issued, and the price and terms upon which

                                                                            -13-

<PAGE>

the Company proposes to issue the same. Each Investor shall have twenty (20)
days from the date of receipt of the Company Notice to exercise such Investor's
Right of First Refusal to purchase up to such Investor's respective Pro Rata
Share of such New Securities for the price and upon the terms specified in the
Company Notice by delivering written notice (the "Right of First Refusal
Election Notice") to the Company and stating therein the quantity of New
Securities to be purchased.

                           (b)      If the Company shall have received one or
more Right of First Refusal Election Notices within twenty (20) days from the
date all Investors are deemed to have received the Company Notice as described
in Section 2.5(a) hereof, in which one or more (but less than all) Investors
have elected to purchase their full Pro Rata Share of the New Securities, the
Company shall immediately give each such Investor notice (the "Over-Allotment
Notice") indicating the aggregate amount of New Securities as to which the
Investors shall not have exercised their respective Rights of First Refusal.
Each Investor who shall have elected to purchase at least its full Pro Rata
Share of such New Securities, pursuant to this Section 2.5, shall have ten (10)
days upon receipt of the Over-Allotment Notice to give notice (the
"Over-Allotment Election Notice") to the Company whether it elects to exercise
its Over-Allotment Option granted in Section 2.2 hereof (and, if so, the maximum
number of additional shares of New Securities it elects to purchase pursuant
thereto).

                           (c)      Settlement for the New Securities to be
purchased by the Investors pursuant to this Section 2.5 shall be made in cash
within twenty (20) days from the Investors' deemed date of receipt of the
Company Notice or within ten (10) days from the Investors' deemed receipt of the
Over-Allotment Notice, if applicable; provided, however, that if the terms of
payment for the New Securities specified in the Company Notice were for other
than cash against delivery, each Investor shall pay in cash to the Company the
fair market value of such consideration as mutually agreed upon by the Company
and a majority of the Investors who elect to purchase New Securities or, if no
such agreement is reached, as determined by an investment banking firm mutually
acceptable to the Company and a majority of the Investors who elect to purchase
New Securities, which appraisal shall be final, within five (5) days of such
determination if such determination is made after fifteen (15) days following
receipt of the Company Notice or five (5) days following receipt of the
Over-Allotment Notice, if applicable.

                           (d)      In the event that the Investors have not
elected to purchase all of the New Securities within the later of twenty (20)
days of the deemed receipt of Company Notice pursuant to clause (a) above or ten
(10) days of the deemed receipt of the Over-Allotment Notice pursuant to clause
(b) above, the Company shall have ninety (90) days thereafter to sell the New
Securities not elected to be purchased by Investors at the price and upon the
terms no more favorable to the purchasers of such securities than specified in
the Company Notice. In the event the Company has not sold some or all of the New
Securities within said ninety (90) day period, the Company shall not thereafter
issue or sell any unsold New Securities without first offering such securities
to the Investors in the manner provided above.

                           (e)      If any Investor shall have failed to deliver
to the Company its Right of First Refusal Election Notice or Over-Allotment
Election Notice within the time periods described in

                                                                            -14-

<PAGE>

this Section 2.5, such Investor shall be deemed to have waived its Right of
First Refusal or Over-Allotment Option, as the case may be, as to such financing
to which such notice pertains.

                  2.6      Waiver of Right of First Refusal. The Right of First
Refusal may be waived as to any given issuance of New Securities (a) on behalf
of the holders of Series A Preferred Stock, by the holders of not less than
two-thirds (2/3) of the Series A Preferred Stock then outstanding (acting on an
as-converted to Common Stock basis), (b) on behalf of the holders of Series B
Preferred Stock, by the holders of not less than two-thirds (2/3) of the Series
B Preferred Stock then outstanding (acting on an as-converted to Common Stock
basis), (c) on behalf of the holders of Series C Preferred Stock, by the holders
of not less than two-thirds (2/3) of the Series C Preferred Stock then
outstanding (acting on an as-converted to Common Stock basis), (d) on behalf of
the holders of Series D Preferred Stock, by the holders of not less than sixty
percent (60%) of the Series D Preferred Stock (e) on behalf of the Bain
Investors by the Bain Investors, and (f) on behalf of the holders of Class A
Common Stock, by the holders of not less than two-thirds (2/3) of the Common
Stock then outstanding.

                  2.7      Termination and Assignment. The Right of First
Refusal granted in this Section 2 shall expire upon the effective date of the
Company's Qualified Public Offering. The Right of First Refusal is
non-assignable except to any transferee to whom registration rights may be
transferred pursuant to Section 1.11 of this Agreement.

                  2.8      Company Right to Terminate Issuance of New
Securities. Notwithstanding the foregoing, the Company may in its sole
discretion terminate any proposed issuance of New Securities in respect of which
the Company has given Company Notice, at any time prior to the consummation
thereof. The foregoing provision shall apply even in the event one or more
Investors shall have exercised their Rights of First Refusal hereunder;
provided, however, that no New Securities shall then have been issued.

         3.       Restrictions on Transfer of Shares.

                  3.1      Restrictions on Transfer. Except as otherwise
provided in this Agreement, Jean Lavigueur, Martin Ouellet and Louis Tetu and
their spouses and personal holding companies (collectively, the "Founders"), any
employees of the Company holding more than 150,000 shares of the Company's
capital stock or options to purchase shares of the Company's capital stock as of
the record date fifteen (15) days prior to delivery of Notice (as defined in
Section 5.1(b)) ("Key Employees") and the Holders of the Series A Preferred
Stock and Telesystem Software Ventures Limited Partnership ("Series A Holders"
and "Telsoft" respectively and collectively with the "Founders" and "Key
Employees," the "Restricted Holders") will not sell, assign, transfer, pledge,
hypothecate, or otherwise encumber or dispose of in any way, all or any part of
or any interest in the Restricted Shares (as defined below) now or hereafter
owned or held by the Restricted Holders. Any sale, assignment, transfer, pledge,
hypothecation or other encumbrance or disposition of the Restricted Shares by
the Restricted Holders not made in conformance with this Agreement shall be null
and void, shall not be recorded on the books of the Company and shall not be
recognized by the Company.

                                                                            -15-

<PAGE>

                  3.2      Restricted Shares. For purposes of this Agreement,
the term "Restricted Shares" shall mean any securities of the Company held by or
payable to the Restricted Holders or their spouses or personal holding companies
or having voting rights in the election of the Board of Directors of the
Company, or any securities evidencing an ownership interest in the Company, or
any securities convertible into or exercisable for any shares of the foregoing
owned as of the date hereof or any time hereafter, or any agreement or
commitment to issue any of the foregoing.

                  3.3      Sales to Competitors. Without the approval of the
Board of Directors, Communicade (as defined in Section 6.3) will not sell or
transfer any of the Series B Preferred Stock now or hereafter owned or held by
Communicade, to any of the entities listed on Exhibit B hereto (or any
Competitor Affiliates thereof), nor will Communicade sell or transfer any of the
Series B Preferred Stock now or hereafter owned or held by Communicade to any
entity that becomes after the date hereof a substantial direct competitor of the
Company (or any Competitor Affiliate thereof) and such proposed transfer could
reasonably be expected to have a material adverse effect on the Company, as
determined by the Board of Directors of the Company, acting in good faith;
provided, however, that this Section 3.3 and Section 3.4 shall not prohibit
Communicade from participating in or effecting any transaction pursuant to a
merger, consolidation, sale of assets, recapitalization or other transaction
approved by the Board of Directors of the Company. For purposes of this Section
3.3, a "Competitor Affiliate" of any particular entity means any other entity
controlling or controlled by such entity, where "control" means the possession
of the power to direct the management and policies of a person or entity through
the ownership of voting securities.

                  3.4      Right of First Refusal on Communicade's Series B
Preferred Stock.

                           (a)      General. In the event that Communicade
proposes to sell or transfer (or, if pursuant Section 3.4(b), sells or
transfers) any Series B Preferred Stock, including in a transaction in which the
Series B Preferred is sold or transferred together with other assets with no
specific amount of consideration specifically allocated thereto (such a
transaction, a "Bundled Transaction"), then prior to effecting such sale or
transfer (or, if pursuant to Section 3.4(b), immediately following such sale or
transfer), Communicade (and, if applicable, the Pre-ROFR Transferee (as defined
in Section 3.4(b)) shall give the Series C Holders the opportunity to purchase
such shares in the following manner:

                                    (i)      Communicade shall give notice (the
"Communicade Transfer Notice") to Bain Capital Venture Fund, L.P. ("Bain"), on
behalf of the Series C Holders, in writing of such intention to sell or transfer
(or, in accordance with Section 3.4(b), of such sale or transfer of) any of the
Series B Preferred Stock then held by Communicade for cash or a promissory note
(or other consideration, the value of which is set forth in the Communicade
Transfer Notice), specifying the securities sold or transferred or proposed to
be sold or transferred, the price per share therefor or proposed price per share
therefor (subject to the immediately following sentence, the "Communicade
Transfer Price"), the name of the transferee or transferees or the proposed
transferee or transferees and the maturity date, amortization schedule, interest
rate and security terms of such promissory note, if applicable. In the event
that any Series B Preferred Stock is sold or transferred in a Bundled
Transaction, (x) the Communicade Transfer Price therefor will be determined by
Communicade or

                                                                            -16-

<PAGE>

the Pre-ROFR Transferee, at Communicade's option, and (y) the Communicade
Transfer Notice shall not be deemed to have been given by Communicade (or
received by Bain) until the Communicade Transfer Price has been determined as
set forth in clause (x) and communicated to Bain.

                                    (ii)     Each Series C Holder shall have the
right, exercisable by written notice given by such Series C Holder to Bain
within three business days after receipt of such Communicade Transfer Notice
from Communicade to purchase for cash from Communicade (or, if pursuant to
Section 3.4(b), from the Pre-ROFR Transferee) all or any portion of the Series C
Holder's Pro Rata Share (as determined below) of the securities specified in
such Communicade Transfer Notice. Each Series C Holder's "Pro Rata Share," for
purposes of this Section 3.4, is equal to the fraction obtained by dividing (a)
the sum of the total number of shares of any Common Stock issuable upon
conversion of Series C Preferred Stock then held by such Series C Holder by (b)
the total number of shares of Common Stock issuable upon conversion of Series C
Preferred Stock then outstanding. In the event that the Series C Holders
together do not purchase all of the securities specified in the Communicade
Transfer Notice, then the Bain Investors shall have the right to purchase up to
all of the remaining securities specified in the Communicade Transfer Notice.
Within five business days after receipt of the Communicade Transfer Notice from
Communicade (the "Series C Exercise Period"), Bain shall give notice to
Communicade (and, if applicable, the Pre-ROFR Transferee) as to that portion of
the securities specified in the Communicade Transfer Notice, if any, which the
Series C Holders elect to purchase pursuant to this Section 3.4 (the
"Election").

                                    (iii)    If the Series C Holders exercise
their right of first refusal within the Series C Exercise Period, within five
business days after receipt by Communicade (and, if applicable, the Pre-ROFR
Transferee) of notice of the Election, the Series C Holders exercising such
right (the "Electing Series C Holders") and Communicade (or, if applicable, the
Pre-ROFR Transferee) shall execute definitive, binding agreements relating to
the purchase on the terms set forth in the Communicade Transfer Notice (the date
such documents are executed, the "Commitment Date"). Upon execution of such
documentation, the Electing Series C Holders and Communicade (or, if applicable,
the Pre-ROFR Transferee) shall be legally obligated to consummate the purchase
contemplated thereby. The closing of the purchase of the securities with respect
to which such right has been exercised shall take place within five business
days after the Commitment Date; provided that in no event will such closing
occur later than on the 15th business day following the initial receipt of the
Communicade Transfer Notice from Communicade.

                                    (iv)     With respect to Series B Preferred
Stock not already sold or transferred pursuant to Section 3.4(b), if the Series
C Holders do not exercise their right of first refusal hereunder within the
Series C Exercise Period, Communicade shall be free, subject to the provisions
of Section 3.3, during the period of ninety (90) days following the expiration
of such time for exercise to enter into an agreement to sell the securities
specified in the Communicade Transfer Notice, to the specified proposed
transferee or another investor which is acquiring the securities solely for
investment purposes, on terms no less favorable to Communicade than the terms
specified in such Communicade Transfer Notice, provided that the closing of the
purchase and sale of such securities shall take place within sixty (60) days
after Communicade enters into such agreement.

                                                                            -17-

<PAGE>

                                    (v)      Without limiting the generality or
effect of any other provision hereof, in no event will Communicade be obligated
to furnish Bain more information in connection with a transaction covered hereby
than the information expressly set forth in Section 3.4(a)(i), and no agreement
providing for any such transaction will include any representation, warranty or
covenant except for standard representations and warranties (and related
indemnification covenants) relating to due authorization, execution, delivery
and the binding nature of the transaction documents and, in the case of the
seller of the Series B Preferred Stock, ownership of and the absence of liens on
the Series B Preferred Stock to be sold or transferred.

                           (b)      Notwithstanding Section 3.4(a) but subject
to Section 3.3, nothing herein will be deemed to restrict Communicade from
selling or transferring any shares of Series B Preferred Stock to a third party
(the "Pre-ROFR Transferee"), including in a Bundled Transaction, prior to
complying with the terms and provisions of Section 3.4(a) (a "Pre-ROFR
Transfer"), provided that, in the definitive agreements relating to the purchase
of the Series B Preferred Stock by the Pre-ROFR Transferee from Communicade,
Communicade and the Pre-ROFR Transferee expressly agree and acknowledge that (i)
the effectiveness of the Pre-ROFR Transfer is subject to the rights of the
Series C Holders under Section 3.4(a) hereof, (ii) the Series C Holders will be
entitled to exercise their rights to purchase such Series B Preferred Stock
directly from the Pre-ROFR Transferee rather than Communicade on the terms set
forth in the Communicade Transfer Notice in accordance with and within the time
periods set forth in Section 3.4(a), and (iii) clauses (i) and (ii) and any
corresponding rights to enforce the provisions thereof are intended to be for
the benefit of the Series C Holders.

                           (c)      Exceptions. The rights of first refusal
pursuant to this Section 3.4 shall not apply to any transfer of Series B
Preferred Stock by Communicade to any person or entity controlling, controlled
by or under common control with Communicade (each a "Communicade Limited
Transferee"), provided in any such case that the transferee agrees to be bound
by the provisions of this Agreement with respect to any further transfers. This
Agreement shall be binding upon each Communicade Limited Transferee and, prior
to the completion of a transfer of Series B Preferred Stock to a Communicade
Limited Transferee, such Communicade Limited Transferee or his or its legal
representative shall have executed documents assuming the obligations of
Communicade under this Agreement with respect to the transferred shares of
Series B Preferred Stock, which documents shall be in the form of Exhibit C
hereto. Such transferred shares of Series B Preferred Stock shall remain subject
to the terms of this Agreement, including without limitation Section 3.3 and
this Section 3.4, and references to Communicade hereunder shall be deemed
thereafter to apply to and include the Communicade Limited Transferee.

                  3.5      Termination and Nonassignment . The right of first
refusal set forth in Section 3.4 shall terminate upon the earliest to occur of
(i) the closing of the Company's initial Public Offering, (ii) December 31,
2004, and (iii) the transfer by Bain to any person or entity other than a person
or entity controlling, controlled by or under common control with Bain (a "Bain
Affiliate") of more than 25% of the Series C Preferred Stock held by Bain on the
date hereof. The right of first refusal set forth in this Section 3.4 is
non-assignable except to any transferee to whom registration rights may be
transferred pursuant to Section 1.11 of this Agreement. The restriction on

                                                                            -18-

<PAGE>

selling to competitors set forth in Section 3.3 shall terminate upon the
transfer by Bain to a non-Bain Affiliate of more than 75% of the Series C
Preferred Stock held by Bain on the date hereof.

         4.       Right of First Refusal on Restricted Shares.

                  4.1      General. In the event that a Restricted Holder
proposes to make any sale or transfer of any of the Restricted Shares, then
prior to effecting such sale or transfer the Restricted Holder shall give the
Company the opportunity to purchase such shares in the following manner:

                           (a)      Such Restricted Holder shall give notice
(the "Transfer Notice") to the Company in writing of such intention, specifying
the securities proposed to be sold or transferred, the proposed price per share
therefor (the "Transfer Price"), the name of the proposed transferee or
transferees and the other material terms upon which such disposition is proposed
to be made, including such other terms and information as the Company may
reasonably request in order to confirm the bona fide nature of the proposed
transaction.

                           (b)      The Company shall have the right,
exercisable by written notice given by the Company to such Holder within twenty
(20) days after receipt of such Transfer Notice (the "Company Exercise Period")
to purchase all or any portion of the securities specified in such Transfer
Notice.

                           (c)      If the Company exercises its right of first
refusal hereunder, the closing of the purchase of the securities with respect to
which such right has been exercised shall take place within thirty (30) days
after the Company gives notice of such exercise, which period of time shall be
extended if necessary to comply with applicable securities laws and regulations.
Upon exercise of its right of first refusal, the Company and such Restricted
Holder shall be legally obligated to consummate the purchase contemplated
thereby and shall use their best efforts to secure any approvals required in
connection therewith.

                           (d)      Subject to the Investors' right of first
refusal described in Section 4.3 of this Agreement below, if the Company does
not exercise its right of first refusal hereunder within the Company Exercise
Period, such Restricted Holder shall be free, subject to the Investors' rights
under Section 5, during the period of ninety (90) days following the expiration
of such time for exercise to enter into an agreement to sell the securities
specified in such Transfer Notice, to the specified proposed transferee or
another investor which is solely a financial investor acquiring for investment
purposes, on terms no less favorable to such Restricted Holder than the terms
specified in such Transfer Notice, provided that the closing of the purchase and
sale of such securities shall take place within sixty (60) days after such
Holder enters into such agreement.

                  4.2      Exceptions. The right of first refusal herein shall
not apply to any transfer of Restricted Shares by a Restricted Holder without
receipt of consideration by the Restricted Holder to any of the following
parties (each a "Limited Transferee") (a) to any Family Member (as defined in
Section 1.11) of any Restricted Holder who is an individual, or to a trust for
the benefit of the Restricted Holder or the Restricted Holder's Family Members
or (ii) to any Affiliated Person (as defined in Section 1.11) of a Restricted
Holder that is an entity, provided in any such case that the

                                                                            -19-

<PAGE>

transferee agrees to be bound by the provisions of this Agreement with respect
to any further transfers. This Agreement shall be binding upon each Limited
Transferee and, prior to the completion of a transfer of Restricted Shares to a
Limited Transferee, such Limited Transferee or his or its legal representative
shall have executed documents assuming the obligations of the Restricted Holder
under this Agreement with respect to the transferred Restricted Shares, which
documents shall be in form and substance reasonably satisfactory to the
Investors owning not less than two-thirds (2/3) of the Series A Preferred or
Series B Preferred or Series C Preferred or Series D Preferred, as applicable,
evidenced by such Investors' written acknowledgment of such satisfaction. Such
transferred Restricted Shares shall remain "Restricted Shares" hereunder, and
references to a "Restricted Holder" hereunder shall be deemed thereafter to
apply to and include the Limited Transferee.

                  4.3      Investors' Right of First Refusal on Restricted
Shares. The Company agrees that in the event that the Company declines to
exercise in full the right of first refusal set forth herein between such
Restricted Holders and the Company, the Company will provide each Investor with
notice of such determination at least fifteen (15) days prior to the end of the
Company Exercise Period. Each Investor shall then have the right to submit,
prior to the end of the Company Exercise Period, notice of its irrevocable
commitment to exercise such right of first refusal within thirty (30) days after
receipt of the Company's notice (the "Investor Exercise Period") in an amount
equal to the Investor's Pro Rata Share as determined under Section 2.3 of this
Agreement. Upon expiration of the Company Exercise Period, the Company will
provide notice to all Investors as to whether or not the right of first refusal
has been or will be exercised by the Company or the Investors. If any Investors
do not exercise their right of first refusal, the Restricted Shares that would
otherwise be allocated to such non-exercising Investors shall be offered to each
exercising Investor on a pro-rata basis (based upon the number of shares of
Registrable Securities held by such exercising Investor relative to the
aggregate number of Registrable Securities held by all such exercising
Investors), provided that the right of first refusal must be exercised, if at
all, prior to the expiration of the Investor Exercise Period.

                  4.4      Termination and Nonassignment. The right of first
refusal set forth in Section 4 of this Agreement herein shall terminate upon the
closing of the Company's initial Public Offering. The right of first refusal set
forth in this Section 4 is non-assignable except to any transferee to whom
registration rights may be transferred pursuant to Section 1.11 of this
Agreement.

         5.       Right of Co-Sale Respecting Shares.

                  5.1      Grant; Notice.

                           (a)      In the event that, after compliance with the
provisions of Section 4, the Restricted Holder proposes to sell, transfer or
otherwise dispose of (a "Transfer") any of the Restricted Shares to any proposed
investor or transferee (a "Transferee"), each Investor shall have a right of
co-sale on the terms described in Section 5.2 below to sell such Investor's
Co-Sale Pro Rata Share (as defined in Section 5.2(b) below) of such Restricted
Shares.

                                                                            -20-

<PAGE>

                           (b)      The selling Restricted Holder (the "Selling
Restricted Holder") shall deliver a notice (the "Notice") to each Investor and
to the Company stating, in reasonable detail, (i) its bona fide intention to
Transfer such Restricted Shares, (ii) the number of such Restricted Shares to be
Transferred, (iii) the price and material terms and conditions upon which the
proposed Transfer is to be made, (iv) the identity of each of the Transferees
and (v) all other information reasonably necessary to fully describe the
proposed Transfer. The Notice shall include a copy of any written proposal or
letter of intent or other agreement relating to the proposed Transfer.

                           (c)      Within thirty (30) days after delivery of
the Notice, each Investor shall indicate in writing to the Selling Restricted
Holder and the Company whether it elects to exercise its co-sale right as
provided in Section 5.2 below, by delivery of a notice of exercise (the
"Investor Election Notice") to the Selling Restricted Holder, with a copy to the
Company, within such thirty (30) day period. Any Investor's failure to deliver a
Investor Election Notice with respect to such Restricted Shares within such
thirty (30) day period shall be deemed to be delivery of a Investor Election
Notice indicating such Investor's election to not exercise any co-sale rights
with respect to the proposed Transfer.

                  5.2      Right of Co-Sale.

                           (a)      In the event that any Restricted Holder
proposes a Transfer of Restricted Shares to any Transferee any Investor who
delivers a Investor Election Notice in accordance with Section 5.1(c) above
indicating an election to exercise such Investor's right of co-sale with respect
to the Transfer referred to by the Notice and the number of shares such Investor
elects to sell (up to such Investor's Co-Sale Pro Rata Share), shall have the
right of co-sale to sell to the Transferee all or any part of that number of
shares of Common Stock or Preferred Stock (or Common Stock issued upon
conversion thereof) equal to its Co-Sale Pro Rata Share of the Restricted Shares
subject to the Notice on the terms and conditions set forth in the Notice. If
the consideration to be paid by the Transferee is of a nature that cannot be
given to such Investor, then such Investor shall have the right to sell its
Co-Sale Pro Rata Share of the Restricted Shares subject to the Notice to the
Selling Restricted Holder at the fair market value per share of such
consideration as reasonably determined by the Board of Directors of the Company
acting in good faith. To the extent that any prospective Transferee refuses to
purchase shares or other securities from such Investor exercising its right of
co-sale hereunder or to the extent the Selling Restricted Holder wishes to delay
the purchase of shares or other securities from the Investor, the Selling
Restricted Holder shall not sell to such prospective Transferee any securities
unless and until, simultaneously with such sale, the Selling Restricted Holder
shall purchase such shares or other securities from such Investor for the same
consideration and on the same terms and conditions as the proposed Transfer
described in the Notice.

                           (b)      Each Investor's "Co-Sale Pro Rata Share" for
purposes of the right of co-sale hereunder is that number of shares of Common
Stock equal to the product obtained by multiplying (i) the aggregate number of
shares of Common Stock covered by the Notice by (ii) the fraction obtained by
dividing (a) the sum of the total number of shares of any (i) Common Stock, (ii)
Common Stock issuable upon conversion of any Preferred Stock and (iii) Common
Stock

                                                                            -21-

<PAGE>

issuable upon exercise of any options or warrants, then held by such Investor by
(b) the sum of the total number of shares of (i) Common Stock, (ii) Common Stock
issuable upon the conversion of Preferred Stock and (iii) Common Stock issuable
upon any exercise of any options or warrants then outstanding.

         If the Investor elects to sell to the Transferee, then the Restricted
Holder shall assign to the Investor as much of the Restricted Holder's interest
in the agreement for the sale of the Restricted Shares as the Investor shall be
entitled to pursuant to the terms hereof.

                  5.3      Transfer of Shares upon Failure to Exercise Right of
Co-Sale. Subject to the Investors' respective rights of co-sale, the Selling
Restricted Holder may, not later than ninety (90) days following delivery to the
Investors and the Company of the Notice, conclude a Transfer of any or all of
the Restricted Shares covered by the Notice to the extent the Investors have not
exercised their rights of co-sale on terms and conditions the same or
substantially the same as those described in the Notice.

                  5.4      Binding Effect of Right of Co-Sale. The right of
co-sale shall be binding upon any Transferee of Restricted Shares other than a
Transferee acquiring Restricted Shares in a transaction which complies with this
Section 5.

                  5.5      Termination of Right of Co-Sale. Notwithstanding
anything in this Section 5 to the contrary, the rights of co-sale shall
terminate on the closing of the Company's Qualified Public Offering.

                  5.6      Delivery Requirements. Each Investor shall effect its
participation in any Restricted Holder's sale of Restricted Shares by promptly
delivering to the Restricted Holder for transfer to the Transferee:

                           (a)      One or more certificates, properly endorsed
for transfer, representing that number of shares of Common Stock or Preferred
Stock which at such time such Investor elects to sell pursuant to the terms
hereof; provided, however, that if the Transferee objects to the delivery of
Preferred Stock in lieu of Common Stock, such Investor shall convert such
Preferred Stock into Common Stock and deliver such Common Stock in lieu thereof.
The Company agrees to make any such conversion concurrent with the actual
transfer of such shares to the Transferee; or

                           (b)      An assignment separate from certificate, via
facsimile or otherwise, which represents the Investor's Co-Sale Pro Rata Share.
The Company agrees to effect any such assignment concurrent with the actual
transfer of such shares to the Transferee.

                  5.7      Exceptions. Notwithstanding anything to the contrary
in this Section 5, but subject to Section 4.1, the Founders may transfer of up
to 44,108 shares in the case of Jean Lavigueur, 1,029,019 shares in the case of
Martin Ouellet, and 181,523 shares in the case of Louis Tetu. The Restricted
Holders may transfer the Restricted Shares to any of the following parties (each
a "Limited Transferee") (i) to any Family Member (as defined in Section 1.11) of
any Restricted Holder who is an individual, or to a trust for the benefit of the
Restricted Holder or the

                                                                            -22-

<PAGE>

Restricted Holder's Family Members; (ii) to any Affiliated Person (as defined in
Section 1.11) of a Restricted Holder that is an entity, provided in any such
case that the transferee agrees to be bound by the provisions of this Agreement
with respect to any further transfers. This Agreement shall be binding upon each
Limited Transferee and, prior to the completion of a transfer of Restricted
Shares to a Limited Transferee, such Limited Transferee or his or its legal
representative shall have executed documents assuming the obligations of the
Restricted Holder under this Agreement with respect to the transferred
Restricted Shares, which documents shall be in form and substance reasonably
satisfactory to the Investors owning not less than two-thirds (2/3) of the
Series A Preferred or Series B Preferred or Series C Preferred or Series D
Preferred, as applicable, evidenced by such Investors' written acknowledgment of
such satisfaction. Such transferred Restricted Shares shall remain "Restricted
Shares" hereunder, and references to a "Restricted Holder" hereunder shall be
deemed thereafter to apply to and include the Limited Transferee.

                  5.8      Legend. All certificates or instruments representing
Restricted Shares or the shares of Series B Preferred Stock held by Communicade,
whether now outstanding or subsequently issued, shall be surrendered to the
Company for endorsement or be endorsed by the Company prior to their issuance
with the following legend:

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO, AND MAY
      BE TRANSFERRED ONLY IN COMPLIANCE WITH, AN INVESTOR RIGHTS AGREEMENT
      AMONG THE HOLDER OF THESE SECURITIES AND CERTAIN OTHER HOLDERS OF THE
     COMPANY'S STOCK, WHICH INCLUDES TRANSFER RESTRICTIONS, A COPY OF WHICH
                IS ON FILE AT THE PRINCIPAL OFFICE OF THE ISSUER.

         The Company shall not transfer any of the Restricted Shares or the
shares of Series B Preferred Stock held by Communicade on its books without
first ascertaining compliance with all of the applicable provisions of this
Agreement with respect to such transfer.

                  5.9      Conditions to Exercise of the Investors' Rights.
Exercise of the Investors' rights under Section 5 hereof shall be subject to and
conditioned upon, and any Selling Restricted Holder and the Company shall use
their best efforts to assist the Investors in, compliance with applicable laws.

                  5.10     Assignment of Right of Co-Sale. The right of co-sale
pursuant to this Section 5 may be assigned (but only with all related
obligations) to any transferee to whom registration rights may be transferred
pursuant to Section 1.11 of this Agreement.

         6.       Covenants of the Company.

                  6.1      Delivery of Financial Statements. The Company shall
deliver to (i) each Investor, so long as such Investor (including its Affiliated
Persons and Family Members) shall be a Series A Holder, Series B Holder, Series
C Holder or Series D Holder that owns at least five percent (5%) of the
Company's outstanding shares and (ii) each of (A) Infinity Capital Venture Fund
1999,

                                                                            -23-

<PAGE>

L.P., Infinity Capital VF Affiliates 1999, L.P. and Infinity Capital VF
Affiliates 1999 (Q), L.P. ("Infinity Capital"), (B) Venrock Associates, Venrock
Associates II, L.P. and Venrock Entrepreneurs Fund, L.P. ("Venrock Associates"),
(C) RRE Ventures II LP, RRE Ventures Fund II LP and (D) Wachovia Capital
Investments, Inc., so long as such entity holds at least 90% of the shares
issued to them pursuant to the Merger Agreement:

                           (a)      as soon as practicable, but in any event
within ninety (90) days after the end of each fiscal year of the Company
thereafter, an income statement for such fiscal year, a balance sheet of the
Company and statement of Stockholders' equity as of the end of such year, and a
statement of cash flows for such year, such year-end financial reports to be in
reasonable detail, prepared in accordance with generally accepted accounting
principles ("GAAP"), and audited and certified by independent public accountants
of nationally recognized standing selected by the Company;

                           (b)      as soon as practicable, but in any event
within forty-five (45) days after the end of each of the first three (3)
quarters of each fiscal year of the Company, an unaudited profit or loss
statement and a statement of cash flows for such fiscal quarter and an unaudited
balance sheet as of the end of such fiscal quarter in reasonable detail prepared
in accordance with GAAP, except for footnotes and normal year-end adjustments;

                           (c)      as soon as practicable, but in any event
within forty-five (45) days after the end of each month that is not the end of a
fiscal quarter, an unaudited profit and loss statement and statement of cash
flows for such month and an unaudited balance sheet as of the end of such month
in reasonable detail prepared in accordance with GAAP, except for footnotes and
normal year-end adjustments;

                           (d)      as soon as practicable, but in any event
prior to thirty (30) days before the end of each fiscal year, a budget and
business plan for the next fiscal year, including balance sheets, income
statements and statements of cash flows prepared on a quarterly basis, and as
soon as prepared, any other budgets or revised budgets prepared by the Company;
and

                           (e)      such other information relating to the
financial condition, business, or corporate affairs of the Company as such
Investor may from time to time reasonably request.

                  6.2      Inspection. So long as an Investor (including its
Affiliated Persons and Family Members) holds at least five percent (5%) of the
Company's outstanding shares, the Company shall permit such Investor, at such
Investor's expense, to visit and inspect the Company's properties, and to
discuss the Company's affairs, finances and accounts with the Company's
officers, employees and outside accountants, all at such reasonable times as may
be requested by such Investor.

                  6.3      Board of Directors. Bain Capital Venture Fund, L.P.
shall be entitled to nominate one member to the Company's Board of Directors
(the "Bain Nominee"), and Communicade Investments Ltd. and its affiliates
(collectively, "Communicade") and Telesystem Software Ventures Limited
Partnership ("Telsoft") shall each be entitled to nominate one member to

                                                                            -24-

<PAGE>

the Company's Board of Directors (the "Communicade Nominee" and the "Telsoft
Nominee", respectively, and collectively with the Bain Nominees, the
"Nominees"), at each meeting or pursuant to each consent of the Company's
stockholders for the election of directors, and to remove from office their
respective Nominee and to fill any vacancy caused by the resignation, death or
removal of their Nominees. The President and the Chairman of the Board of the
Company shall each be members of the Board of Directors (the "Management
Directors"), and the members of the Board of Directors, with the consent of the
Bain Investors, shall collectively nominate two independent directors who shall
not be affiliated with any of the Bain Investors, Communicade, Telsoft or
management (the "Independent Directors," and collectively with the Management
Directors, the "Appointees"). John Simon shall be entitled to be nominated as
one of the Independent Director Appointees for a term of two years unless
removed for cause under the Bylaws of the Company and the General Corporation
Law of the State of Delaware. Each Investor hereby agrees to vote all of their
shares of Class A Common Stock, Class B Common Stock, Series A Preferred Stock,
Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and
any other voting securities of the Company now owned or hereafter acquired in
favor of the election of the Nominees and the Appointees to the Board.

                           (a)      The Company shall call, promptly following
receipt of a request of Bain Capital Venture Fund, L.P. in case of the Bain
Nominee, Communicade in the case of the Communicade Nominee or Telsoft in the
case of the Telsoft Nominee, a special meeting of the stockholders of the
Company to elect a Nominee to the Board and to cause the removal of the Nominee
if Bain Capital Venture Fund, L.P. in case of the Bain Nominee, Communicade in
the case of the Communicade Nominee or Telsoft in the case of the Telsoft
Nominee shall request the removal of their respective Nominees in writing for
any reason. Bain Capital Venture Fund, L.P. in case of the Bain Nominee,
Communicade in the case of the Communicade Nominee and Telsoft in the case of
the Telsoft Nominee shall have the right to designate a new nominee in the event
their respective Nominees shall be removed pursuant to this Section 6.3(a) or
shall vacate his directorship for any reason.

                           (b)      The Company shall use reasonable efforts to
prevent any action from being taken by the Board during the pendency of any
vacancy due to death, resignation or removal of a Nominee, unless Bain Capital
Venture Fund, L.P. in case of the Bain Nominee, Communicade in the case of the
Communicade Nominee and Telsoft in the case of the Telsoft Nominee shall have
failed to act to nominate and elect a replacement in a timely manner.

                           (c)      The Company shall enter into indemnity
agreements with the Nominees on terms no less favorable than any other director
of the Company, and cause the Nominees (and any former Nominees) to be covered
on any insurance policy maintained from time to time by the Company or any other
person covering acts and omissions of the directors and officers of the Company
in their capacity as such. The Company shall pay the reasonable out-of-pocket
expenses incurred by each Nominee in connection with attending the meetings of
the Board and any committees thereof.

                                                                            -25-

<PAGE>

                           (d)      The Company and each Investor shall take all
action necessary to ensure that the Bylaws and the Board do not provide for a
number of directors (including any vacant seats) on the Board greater than
seven.

                           (e)      So long as the Bain Investors own at least
thirty percent (30%) of the number of shares of Series C Preferred Stock
purchased by the Bain Investors under the Purchase Agreement (as defined below),
Bain Capital Venture Fund, L.P. shall be entitled to designate one
representative to attend all meetings of the Board as an observer and receive
notice of such meetings and all other documentation distributed to the Board
when and as distributed to the Board. The Company shall pay the reasonable
out-of-pocket expenses incurred by such observer in connection with attending
the meetings of the Board.

                  6.4      Negative Covenants.

                           (a)      So long as the Bain Investors own at least
seventy-five (75%) percent of the number of shares of Series C Preferred Stock
purchased by the Bain Investors under the Purchase Agreement, the Company shall
not without first obtaining approval (by vote or written consent, as provided by
law) of the Bain Investors:

                                    (i)      sell, convey, or otherwise dispose
of all or substantially all of its property or business or merge with or into or
consolidate with any other corporation (other than a wholly-owned subsidiary
corporation) or effect a merger, consolidation or any other transaction or
series of related transactions in which more than 50% of the voting power of the
Company is disposed of, provided that the Company may effect a merger effected
solely for the purpose of changing the domicile of the Company without approval
of the holders of a majority of the Series C Preferred Stock;

                                    (ii)     declare or pay any dividends on, or
redeem, any shares of capital stock other than the Series C Preferred Stock in
accordance with its terms as provided for in the Company's Fifth Amended and
Restated Certificate of Incorporation;

                                    (iii)    increase or decrease the authorized
number of members of the Board of Directors of the Company;

                                    (iv)     materially alter its business plan
or make any material change in the nature of its current and prospective
business, or enter into new lines of business as carried on at the date hereof
or as contemplated in written materials delivered to the Board of Directors of
the Company prior to the date hereof.

                           (b)      If the Bain Investors own less than
seventy-five (75%) percent of the number of shares of Series C Preferred Stock
purchased by the Bain Investors under the Series C Preferred Stock Purchase
Agreement dated as of January 19, 2001 (the "Purchase Agreement"), then so long
as at least ten percent (10%) of the Series C Preferred Stock remain
outstanding, the Company shall not without first obtaining approval (by vote or
written consent, as provided by law) of the holders of at least a majority of
the outstanding shares of Series C Preferred Stock:

                                                                            -26-

<PAGE>

                           (i)      sell, convey, or otherwise dispose of all or
substantially all of its property or business or merge with or into or
consolidate with any other corporation (other than a wholly-owned subsidiary
corporation) or effect a merger, consolidation or any other transaction or
series of related transactions in which more than 50% of the voting power of the
Company is disposed of, provided that the Company may effect a merger effected
solely for the purpose of changing the domicile of the Company without approval
of the holders of a majority of the Series C Preferred Stock;

                           (ii)     declare or pay any dividends on, or redeem,
any shares of capital stock other than the Series C Preferred Stock in
accordance with its terms as provided for in the Company's Fifth Amended and
Restated Certificate of Incorporation.

                           (iii)    increase or decrease the authorized number
of members of the Board of Directors of the Company; or

                           (iv)     materially alter its business plan or make
any material change in the nature of its current and prospective business, or
enter into new lines of business as carried on at the date hereof or as
contemplated in written materials delivered to the Board of Directors of the
Company prior to the date hereof.

                  6.5      Termination of Covenants. The covenants set forth in
this Section 6 shall terminate and be of no further force or effect upon the
closing of the Qualified Public Offering.

         7.       Miscellaneous.

                  7.1      Successors and Assigns. Except as otherwise provided
herein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of the parties
(including transferees of any shares of Registrable Securities). Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

                  7.2      Governing Law. This Agreement shall be governed by
and construed under the laws of the State of Delaware without reference to
conflict of laws rules.

                  7.3      Counterparts. This Agreement may be executed in two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

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

                  7.5      Notices. All notices and other communications
required or permitted hereunder shall be in writing, shall be effective when
given, and shall in any event be deemed to be given upon receipt or, if earlier,
(a) five (5) days after deposit with the U.S. Postal Service or other

                                                                            -27-

<PAGE>

applicable postal service, if delivered by first class mail, postage prepaid,
(b) upon delivery, if delivered by hand, (c) one (1) business day after the
business day of deposit with Federal Express or similar overnight courier,
freight prepaid or (d) one (1) business day after the business day of facsimile
transmission, if delivered by facsimile transmission with copy by first class
mail, postage prepaid, and shall be addressed (i) if to an Investor, at the
Investor's addresses as set forth on Exhibit A hereto and (ii) if to the
Company, at the address of its principal corporate offices (attention:
Secretary), or in any such case at such other address as a party may designate
by ten (10) days' advance written notice to the other party pursuant to the
provisions above.

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

                  7.7      Amendments and Waivers. Any term of this Agreement
may be amended and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and the holders of
a majority of the Registrable Securities then outstanding; provided, however,
that in the event that such amendment or waiver adversely affects the
obligations and/or rights of any Holder or class of Holders in a different
manner than the other Holders or any other class of Holders, such amendment or
waiver shall also require the written consent of such Holder or majority in
interest of such class of Holders, as the case may be. Any amendment or waiver
effected in accordance with this paragraph shall be binding upon each holder of
any Registrable Securities then outstanding, each future holder of all such
Registrable Securities, and the Company.

                  7.8      Aggregation of Stock. All shares of the Series A
Preferred Stock, Series B Preferred Stock, Series C Preferred Stock
and Series D Preferred Stock of the Company held or acquired (or Class A Common
Stock issuable upon conversion thereof) by affiliated entities or persons
(including partners or constituent members and former partners and former
constituent members) shall be aggregated together for the purpose of determining
the availability or discharge of any rights under this Agreement. For purposes
of this Section 7.8, the Company may rely on such person whom a group of
related persons shall designate from time to time for information relating to
the affiliations of entities or persons.

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

                  7.10     Entire Agreement. This Agreement (including the
Exhibits hereto, if any) constitutes the full and entire understanding and
agreement between the parties with regard to the subjects hereof and thereof,
and supersedes all prior agreements and understandings with respect to the
subject matter hereof (including without limitation the Amended and Restated
Investor Rights Agreement dated as of January 19, 2001 by and among the Company
and the Prior Holders (the "Prior Agreement")).

                                                                            -28-

<PAGE>

                  7.11     Dispute Resolution. If there arises a dispute between
any party to this Agreement, and any other party to this Agreement regarding
this Agreement, those parties agree to negotiate in good faith to resolve the
dispute between them regarding this Agreement. If the negotiations do not
resolve the dispute to the reasonable satisfaction of both parties, then each
party shall nominate one partner, member or senior officer of the rank of Vice
President or higher as its representative. These representatives shall, within
thirty (30) days of a written request by either party to call such a meeting,
meet in person and alone (except for one assistant for each party) and shall
attempt in good faith to resolve the dispute. If the disputes cannot be resolved
by such senior managers in such meeting, the parties agree that they shall, if
requested in writing by either party, meet within thirty (30) days after such
written notification for one day with an impartial mediator mutually agreed upon
by the parties and consider dispute resolution alternatives other than
litigation. If any alternative method of dispute resolution is not agreed upon
within thirty (30) days after the one day mediation, either party may begin
litigation proceedings. This procedure shall be a prerequisite before taking any
additional action hereunder.

                  7.12     Remedies. Subject to Section 7.11, 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.

                  7.13     No Inconsistent Agreements. Except for the Prior
Agreement, which shall terminate and be of no further force and effect as of the
date of this Agreement, the Company has not, as of the date hereof, and will
not, on or after the date hereof, enter into any agreement with respect to its
securities which is inconsistent with or more favorable to any stockholder on
the date hereof than the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The Company shall not, directly
or indirectly, enter into any merger, consolidation or reorganization in which
the Company is not the surviving corporation unless the proposed surviving
corporation, prior to the merger, consolidation or reorganization, agrees in
writing to assume the obligations of the Company under this Agreement, and for
that purpose references herein to "Registrable Securities" shall be deemed to be
references to the securities to which holders of Registrable Securities would be
entitled to receive in exchange for Registrable Securities in any such merger,
consolidation or reorganization unless such securities were registered under the
Act in connection with the merger, consolidation or reorganization.

                                                                            -29-

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Second Amended and
Restated Investor Rights Agreement as of the date first above written.

                                     RECRUITSOFT, INC.

                                     By: /s/ Louis Tetu
                                        ---------------------------------------
                                        Louis Tetu
                                        Chief Executive Officer

                                     Address: 330 St-Vallier East, Suite 400
                                              Quebec (Quebec)
                                              G1K 9C5
                                              Canada

                                     INVESTORS:

                                     COMMUNICADE INVESTMENT
                                     COMPANY OF NEVADA, INC.

                                     By: /s/ Michael P. Tierney
                                         ---------------------------------------
                                     Name: Michael P. Tierney
                                           -------------------------------------
                                     Title: Managing Director
                                            ------------------------------------

                                     BAIN CAPITAL VENTURE FUND, L.P.
                                     By:  Bain Capital Venture Partners, L.P.,
                                          its general partner
                                     By:  Bain Capital Investors, LLC,
                                          its general partner

                                     By: /s/ Jeffrey Schwartz
                                         ---------------------------------------
                                     Name: Jeffrey Schwartz
                                           -------------------------------------
                                     Title:  Managing Director
                                             -----------------------------------

                  [Signature Page to Investor Rights Agreement]

<PAGE>

                                     BCIP ASSOCIATES II
                                     BCIP TRUST ASSOCIATES II
                                     BCIP ASSOCIATES II-B
                                     BCIP TRUST ASSOCIATES II-B

                                     By:  Bain Capital, Inc.,
                                          their Managing Partner

                                     By: /s/ Jeffrey Schwartz
                                         ---------------------------------------
                                     Name: Jeffrey Schwartz
                                          --------------------------------------
                                     Title:  Managing Director
                                           -------------------------------------
                                     RGIP, LLC

                                     By:
                                        ----------------------------------------
                                     Name:
                                          --------------------------------------
                                     Title:
                                           -------------------------------------

                                     E-SQUAM INVESTORS I, L.P.

                                     By: E-GPI, Inc.
                                        ----------------------------------------

                                     Name:
                                          --------------------------------------

                                     Title: Managing General Partner
                                           -------------------------------------

                                     SUNAPEE SECURITIES, INC.

                                     By:
                                        ----------------------------------------
                                     Name:
                                          --------------------------------------
                                     Title:
                                           -------------------------------------

<PAGE>

                                    GENERAL CATALYST GROUP, LLC

                                    By: General Catalyst Partners, LLC
                                        its Managing Partner

                                    By: /s/ William J. Fitzgerald
                                       -----------------------------------------

                                    Name: William J. Fitzgerald
                                         ---------------------------------------

                                    Title: Member and Chief Financial Officer
                                          --------------------------------------

                                    NB CAPITAL PARTNERS INC., A CORPORATION
                                    INCORPORATED UNDER THE LAWS OF THE PROVINCE
                                    OF ONTARIO, AND NB CAPITAL PARTNERS NOMINEE
                                    INC., A CORPORATION INCORPORATED UNDER THE
                                    LAWS OF CANADA, IN THEIR CAPACITY AS GENERAL
                                    PARTNER AND NOMINEE RESPECTIVELY OF NB
                                    CAPITAL VENTURE FUND, LP AND ITS PARALLEL
                                    INVESTORS.

                                    By:
                                       -----------------------------------------

                                    Name:
                                         ---------------------------------------

                                    Title:
                                          --------------------------------------

                                    COMMUNICADE INVESTMENTS LTD.

                                    By: /s/ Michael P. Tierney
                                       -----------------------------------------

                                    Name: Michael P. Tierney
                                         ---------------------------------------

                                    Title: Managing Director
                                          --------------------------------------

                                    TELESYSTEM LTD.

                                    By: /s/ Charles Sirois
                                       -----------------------------------------

                                    Name: Charles Sirois
                                         ---------------------------------------

                                    Title: President
                                          --------------------------------------
<PAGE>

                                    TELESYSTEM SOFTWARE VENTURES LIMITED
                                    PARTNERSHIP BY TELSOFT VENTURES, INC., ITS
                                    GENERAL PARTNER

                                    By: /s/ Robert Talbot
                                       -----------------------------------------

                                    Name: Robert Talbot
                                         ---------------------------------------

                                    Title: President
                                          --------------------------------------

                                    ASSOCIATION DE BIENFAISANCE ET DE RETRAITE
                                    DES POLICIERS ET POLICIERS DE LA COMMUNAUTE
                                    URBAINE DE MONTREAL

                                    By:
                                       -----------------------------------------

                                    Name:
                                         ---------------------------------------

                                    Title:
                                          --------------------------------------

                                    GRYFFINDOR CAPITAL PARTNERS I, LLC

                                    By:
                                       -----------------------------------------

                                    Name:
                                         ---------------------------------------

                                    Title:
                                          --------------------------------------

                                    INFINITY CAPITAL VENTURE FUND 1999, L.P.

                                    By: Infinity Capital VF 1999
                                        Management LLC, a
                                        California limited liability
                                        company

                                    By: /s/ Lori Kulvin Crawford
                                       -----------------------------------------

                                    Name: Lori Kulvin Crawford
                                         ---------------------------------------

                                    Title: Managing Director
                                          --------------------------------------

<PAGE>

                                    INFINITY CAPITAL VF AFFILIATES 1999, L.P.

                                    By: Infinity Capital VF 1999

                                    Management LLC, a California limited

                                    liability company

                                    By: /s/ Lori Kulvin Crawford
                                        .........................

                                    Name: Lori Kulvin Crawford
                                          ....................

                                    Title: Managing Director
                                           .................

                                    INFINITY CAPITAL VF AFFILIATES 1999 (Q),
                                    L.P.

                                    By: Infinity Capital VF 1999

                                    Management LLC, a California limited

                                    liability company

                                    By: /s/ Lori Kulvin Crawford
                                        ........................

                                    Name: Lori Kulvin Crawford
                                          ....................

                                    Title: Managing Director
                                           .................

                                    VENROCK ASSOCIATES

                                    By: /s/ Anthony B. Evnin
                                        ....................

                                    Name: Anthony B. Evnin
                                          ................

                                    Title: General Partner
                                           ...............

                                    VENROCK ASSOCIATES II, L.P.

                                    By: /s/ Anthony B. Evnin
                                        ....................

                                    Name: Anthony B. Evnin
                                          ................

                                    Title: General Partner
                                           ...............
<PAGE>

                                    RRE VENTURES II LP

                                    By: /s/ Andrew L. Zalasin
                                       -----------------------------------------

                                    Name:   Andrew L. Zalasin
                                         ---------------------------------------

                                    Title:  General Partner
                                          --------------------------------------

                                    RRE VENTURES FUND II LP

                                    By: /s/ Andrew L. Zalasin
                                       -----------------------------------------

                                    Name:   Andrew L. Zalasin
                                         ---------------------------------------

                                    Title:  General Partner
                                          --------------------------------------

                                    WACHOVIA INVESTORS, INC.

                                    By: /s/ Sue Schwein
                                       -----------------------------------------

                                    Name: Sue Schwein
                                         ---------------------------------------

                                    Title: Vice President
                                          --------------------------------------

                                    WACHOVIA CAPITAL INVESTMENTS, INC.

                                    By: /s/ Sue Schwein
                                       -----------------------------------------

                                    Name: Sue Schwein
                                         ---------------------------------------

                                    Title: Vice President
                                          --------------------------------------

                                    EVELYN GRACE DORSI

                                    --------------------------------------------

<PAGE>

                                    WARREN T. LAZAROW

                                    /s/ Warren T. Lazarow
                                    --------------------------------------------

                                    DB EQUITY, LLC
                                    Dewey Ballantine LLP

                                    By: /s/ Bernard E. Kury
                                       -----------------------------------------

                                    Name: Bernard E. Kury
                                         ---------------------------------------

                                    Title: Partner
                                          --------------------------------------
                                    BERNARD E. KURY

                                    /s/ Bernard E. Kury
                                    --------------------------------------------

                                    ANDREW WAX

                                    /s/ Andrew Wax
                                    --------------------------------------------

                                    LES STRAUSS

                                    /s/ Les Strauss
                                    --------------------------------------------

                                    COMDISCO, INC.

                                    By:   /s/ Thomas N. Ahto
                                       -----------------------------------------

                                    Name:     Thomas N. Ahto
                                         ---------------------------------------

                                    Title:    Vice President
                                          --------------------------------------

<PAGE>

                                    TGI FINANCIAL, INC.

                                    By: /s/ Steven R. Gerbsman
                                        ......................

                                    Name: Steven R. Gerbsman
                                          ..................

                                    Title: President
                                           .........

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Second Amended and
Restated Investor Rights Agreement as of the date first above written.

                                    FOUNDERS:

                                    JEAN LAVIGUEUR

                                    /s/ Jean Lavigueur
                                    --------------------------------------------

                                    MARTIN OUELLET

                                    /s/ Martin Ouellet
                                    --------------------------------------------

                                    LOUIS TETU

                                    /s/ Louis Tetu
                                    --------------------------------------------

                  [Signature Page to Investor Rights Agreement]<PAGE>

                                                                    EXHIBIT 10.1

                              RECRUITSOFT.COM INC.

                                 1999 STOCK PLAN

         1.       Purposes of the Plan. The purposes of this Stock Plan are to
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees, Directors and
Consultants and to promote the success of the Company's business. Options
granted under the Plan may be Incentive Stock Options or Nonstatutory Stock
Options, as determined by the Administrator at the time of grant. Stock Purchase
Rights may also be granted under the Plan.

         2.       Definitions. As used herein, the following definitions shall
apply:

                  (a)      "Administrator" means the Board or any of its
Committees as shall be administering the Plan in accordance with Section 4
hereof.

                  (b)      "Applicable Laws" means the requirements relating to
the administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any other country or jurisdiction where Options or Stock Purchase Rights are
granted under the Plan.

                  (c)      "Board" means the Board of Directors of the Company.

                  (d)      "Code" means the Internal Revenue Code of 1986, as
amended.

                  (e)      "Committee" means a committee of Directors appointed
by the Board in accordance with Section 4 hereof.

                  (f)      "Common Stock" means the Common Stock of the Company.

                  (g)      "Company" means Recruitsoft.com Inc., a Delaware
corporation.

                  (h)      "Consultant" means any person who is engaged by the
Company or any Parent or Subsidiary to render consulting or advisory services to
such entity.

                  (i)      "Director" means a member of the Board of Directors
of the Company.

                  (j)      "Disability" means total and permanent disability as
defined in Section 22(e)(3) of the Code.

                  (k)      "Employee" means any person, including Officers and
Directors, employed by the Company or any Parent or Subsidiary of the Company. A
Service Provider shall not cease to be

<PAGE>

an Employee in the case of (i) any leave of absence approved by the Company or
(ii) transfers between locations of the Company or between the Company, its
Parent, any Subsidiary, or any successor. For purposes of Incentive Stock
Options, no such leave may exceed ninety days, unless reemployment upon
expiration of such leave is guaranteed by statute or contract. If reemployment
upon expiration of a leave of absence approved by the Company is not so
guaranteed, on the 181st day of such leave any Incentive Stock Option held by
the Optionee shall cease to be treated as an Incentive Stock Option and shall be
treated for tax purposes as a Nonstatutory Stock Option. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.

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

                  (m)      "Fair Market Value" means, as of any date, the value
of Common Stock determined as follows:

                           (i)      If the Common Stock is listed on any
established stock exchange or a national market system, including without
limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The
Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for
such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or system for the last market trading day prior to the time of
determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable;

                           (ii)     If the Common Stock is regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean between the high bid and low asked prices for the
Common Stock on the last market trading day prior to the day of determination;
or

                           (iii)    In the absence of an established market for
the Common Stock, the Fair Market Value thereof shall be determined in good
faith by the Administrator.

                  (n)      "Incentive Stock Option" means an Option intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code.

                  (o)      "Nonstatutory Stock Option" means an Option not
intended to qualify as an Incentive Stock Option.

                  (p)      "Officer" means a person who is an officer of the
Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

                  (q)      "Option" means a stock option granted pursuant to the
Plan.

                  (r)      "Option Agreement" means a written or electronic
agreement between the Company and an Optionee evidencing the terms and
conditions of an individual Option grant. The Option Agreement is subject to the
terms and conditions of the Plan.

                                       2
<PAGE>

                  (s)      "Option Exchange Program" means a program whereby
outstanding Options are exchanged for Options with a lower exercise price.

                  (t)      "Optioned Stock" means the Common Stock subject to an
Option or a Stock Purchase Right.

                  (u)      "Optionee" means the holder of an outstanding Option
or Stock Purchase Right granted under the Plan.

                  (v)      "Parent" means a "parent corporation," whether now or
hereafter existing, as defined in Section 424(e) of the Code.

                  (w)      "Plan" means this 1999 Stock Plan.

                  (x)      "Restricted Stock" means shares of Common Stock
acquired pursuant to a grant of a Stock Purchase Right under Section 11 below.

                  (y)      "Service Provider" means an Employee, Director or
Consultant.

                  (z)      "Share" means a share of the Common Stock, as
adjusted in accordance with Section 12 below.

                  (aa)     "Stock Purchase Right" means a right to purchase
Common Stock pursuant to Section 11 below.

                  (bb)     "Subsidiary" means a "subsidiary corporation,"
whether now or hereafter existing, as defined in Section 424(f) of the Code.

         3.       Stock Subject to the Plan. Subject to the provisions of
Section 12 of the Plan, the maximum aggregate number of Shares which may be
subject to option and sold under the Plan is 17,093,835 Shares. The Shares may
be authorized but unissued, or reacquired Common Stock.

                  If an Option or Stock Purchase Right expires or becomes
unexercisable without having been exercised in full, or is surrendered pursuant
to an Option Exchange Program, the unpurchased Shares which were subject thereto
shall become available for future grant or sale under the Plan (unless the Plan
has terminated). However, Shares that have actually been issued under the Plan,
upon exercise of either an Option or Stock Purchase Right, shall not be returned
to the Plan and shall not become available for future distribution under the
Plan, except that if Shares of Restricted Stock are repurchased by the Company
at their original purchase price, such Shares shall become available for future
grant under the Plan.

         4.       Administration of the Plan.

                  (a)      Administrator. The Plan shall be administered by the
Board or a Committee appointed by the Board, which Committee shall be
constituted to comply with Applicable Laws.

                                       3
<PAGE>

                  (b)      Powers of the Administrator. Subject to the
provisions of the Plan and, in the case of a Committee, the specific duties
delegated by the Board to such Committee, and subject to the approval of any
relevant authorities, the Administrator shall have the authority in its
discretion:

                           (i)      to determine the Fair Market Value;

                           (ii)     to select the Service Providers to whom
Options and Stock Purchase Rights may from time to time be granted hereunder;

                           (iii)    to determine the number of Shares to be
covered by each such award granted hereunder;

                           (iv)     to approve forms of agreement for use under
the Plan;

                           (v)      to determine the terms and conditions of any
Option or Stock Purchase Right granted hereunder. Such terms and conditions
include, but are not limited to, the exercise price, the time or times when
Options or Stock Purchase Rights may be exercised (which may be based on
performance criteria), any vesting acceleration or waiver of forfeiture
restrictions, and any restriction or limitation regarding any Option or Stock
Purchase Right or the Common Stock relating thereto, based in each case on such
factors as the Administrator, in its sole discretion, shall determine;

                           (vi)     to determine whether and under what
circumstances an Option may be settled in cash under subsection 9(e) instead of
Common Stock; (vii) to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Option has declined since the date the Option was granted;

                           (viii)   to initiate an Option Exchange Program;

                           (ix)     to prescribe, amend and rescind rules and
regulations relating to the Plan, including rules and regulations relating to
sub-plans established for the purpose of qualifying for preferred tax treatment
under foreign tax laws;

                           (x)      to allow Optionees to satisfy withholding
tax obligations by electing to have the Company withhold from the Shares to be
issued upon exercise of an Option or Stock Purchase Right that number of Shares
having a Fair Market Value equal to the amount required to be withheld. The Fair
Market Value of the Shares to be withheld shall be determined on the date that
the amount of tax to be withheld is to be determined. All elections by Optionees
to have Shares withheld for this purpose shall be made in such form and under
such conditions as the Administrator may deem necessary or advisable; and

                                       4
<PAGE>

                           (xi)     to construe and interpret the terms of the
Plan and awards granted pursuant to the Plan.

                  (c)      Effect of Administrator's Decision. All decisions,
determinations and interpretations of the Administrator shall be final and
binding on all Optionees.

         5.       Eligibility.

                  (a)      Nonstatutory Stock Options and Stock Purchase Rights
may be granted to Service Providers. Incentive Stock Options may be granted only
to Employees.

                  (b)      Each Option shall be designated in the Option
Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.
However, notwithstanding such designation, to the extent that the aggregate Fair
Market Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 5(b), Incentive Stock Options shall be taken into account in the order
in which they were granted. The Fair Market Value of the Shares shall be
determined as of the time the Option with respect to such Shares is granted.

                  (c)      Neither the Plan nor any Option or Stock Purchase
Right shall confer upon any Optionee any right with respect to continuing the
Optionee's relationship as a Service Provider with the Company, nor shall it
interfere in any way with his or her right or the Company's right to terminate
such relationship at any time, with or without cause.

         6.       Term of Plan. The Plan shall become effective upon its
adoption by the Board. It shall continue in effect for a term of ten (10) years
unless sooner terminated under Section 14 of the Plan.

         7.       Term of Option. The term of each Option shall be stated in the
Option Agreement; provided, however, that the term shall be no more than ten
(10) years from the date of grant thereof. In the case of an Incentive Stock
Option granted to an Optionee who, at the time the Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Option shall
be five (5) years from the date of grant or such shorter term as may be provided
in the Option Agreement.

         8.       Option Exercise Price and Consideration.

                  (a)      The per share exercise price for the Shares to be
issued upon exercise of an Option shall be such price as is determined by the
Administrator, but shall be subject to the following:

                           (i)      In the case of an Incentive Stock Option

                                       5
<PAGE>

                                    (1)      granted to an Employee who, at the
time of grant of such Option, owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent
or Subsidiary, the exercise price shall be no less than 110% of the Fair Market
Value per Share on the date of grant.

                                    (2)      granted to any other Employee, the
per Share exercise price shall be no less than 100% of the Fair Market Value per
Share on the date of grant.

                           (ii)     In the case of a Nonstatutory Stock Option

                                    (1)      granted to a Service Provider who,
at the time of grant of such Option, owns stock representing more than ten
percent (10%) of the voting power of all classes of stock of the Company or any
Parent or Subsidiary, the exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of grant.

                                    (2)      granted to any other Service
Provider, the per Share exercise price shall be no less than 85% of the Fair
Market Value per Share on the date of grant.

                           (iii)    Notwithstanding the foregoing, Options may
be granted with a per Share exercise price other than as required above pursuant
to a merger or other corporate transaction.

                  (b)      The consideration to be paid for the Shares to be
issued upon exercise of an Option, including the method of payment, shall be
determined by the Administrator (and, in the case of an Incentive Stock Option,
shall be determined at the time of grant). Such consideration may consist of (1)
cash, (2) check, (3) promissory note, (4) other Shares which (x) in the case of
Shares acquired upon exercise of an Option, have been owned by the Optionee for
more than six months on the date of surrender, and (y) have a Fair Market Value
on the date of surrender equal to the aggregate exercise price of the Shares as
to which such Option shall be exercised, (5) consideration received by the
Company under a cashless exercise program implemented by the Company in
connection with the Plan, or (6) any combination of the foregoing methods of
payment. In making its determination as to the type of consideration to accept,
the Administrator shall consider if acceptance of such consideration may be
reasonably expected to benefit the Company.

                                       6
<PAGE>

         9.       Exercise of Option.

                  (a)      Procedure for Exercise; Rights as a Stockholder. Any
Option granted hereunder shall be exercisable according to the terms hereof at
such times and under such conditions as determined by the Administrator and set
forth in the Option Agreement. Except in the case of Options granted to
Officers, Directors and Consultants, Options shall become exercisable at a rate
of no less than 20% per year over five (5) years from the date the Options are
granted. Unless the Administrator provides otherwise, vesting of Options granted
hereunder to Officers and Directors shall be tolled during any unpaid leave of
absence. An Option may not be exercised for a fraction of a Share.

                  An Option shall be deemed exercised when the Company receives:
(i) written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a stockholder shall exist
with respect to the Shares, notwithstanding the exercise of the Option. The
Company shall issue (or cause to be issued) such Shares promptly after the
Option is exercised. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued, except as
provided in Section 12 of the Plan.

                  Exercise of an Option in any manner shall result in a decrease
in the number of Shares thereafter available, both for purposes of the Plan and
for sale under the Option, by the number of Shares as to which the Option is
exercised.

                  (b)      Termination of Relationship as a Service Provider. If
an Optionee ceases to be a Service Provider, such Optionee may exercise his or
her Option within such period of time as is specified in the Option Agreement
(of at least thirty (30) days) to the extent that the Option is vested on the
date of termination (but in no event later than the expiration of the term of
the Option as set forth in the Option Agreement). In the absence of a specified
time in the Option Agreement, the Option shall remain exercisable for three (3)
months following the Optionee's termination. If, on the date of termination, the
Optionee is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan. If, after termination,
the Optionee does not exercise his or her Option within the time specified by
the Administrator, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan.

                  (c)      Disability of Optionee. If an Optionee ceases to be a
Service Provider as a result of the Optionee's Disability, the Optionee may
exercise his or her Option within such period of time as is specified in the
Option Agreement (of at least six (6) months) to the extent the Option is vested
on the date of termination (but in no event later than the expiration of the
term of such Option

                                       7
<PAGE>

as set forth in the Option Agreement). In the absence of a specified time in the
Option Agreement, the Option shall remain exercisable for twelve (12) months
following the Optionee's termination. If, on the date of termination, the
Optionee is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan. If, after termination,
the Optionee does not exercise his or her Option within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

                  (d)      Death of Optionee. If an Optionee dies while a
Service Provider, the Option may be exercised within such period of time as is
specified in the Option Agreement (of at least six (6) months) to the extent
that the Option is vested on the date of death (but in no event later than the
expiration of the term of such Option as set forth in the Option Agreement) by
the Optionee's estate or by a person who acquires the right to exercise the
Option by bequest or inheritance. In the absence of a specified time in the
Option Agreement, the Option shall remain exercisable for twelve (12) months
following the Optionee's termination. If, at the time of death, the Optionee is
not vested as to the entire Option, the Shares covered by the unvested portion
of the Option shall immediately revert to the Plan. If the Option is not so
exercised within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

                  (e)      Buyout Provisions. The Administrator may at any time
offer to buy out for a payment in cash or Shares, an Option previously granted,
based on such terms and conditions as the Administrator shall establish and
communicate to the Optionee at the time that such offer is made.

         10.      Non-Transferability of Options and Stock Purchase Rights. The
Options and Stock Purchase Rights may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by
the laws of descent or distribution and may be exercised, during the lifetime of
the Optionee, only by the Optionee.

         11.      Stock Purchase Rights.

                  (a)      Rights to Purchase. Stock Purchase Rights may be
issued either alone, in addition to, or in tandem with other awards granted
under the Plan and/or cash awards made outside of the Plan. After the
Administrator determines that it will offer Stock Purchase Rights under the
Plan, it shall advise the offeree in writing or electronically of the terms,
conditions and restrictions related to the offer, including the number of Shares
that such person shall be entitled to purchase, the price to be paid, and the
time within which such person must accept such offer. The terms of the offer
shall comply in all respects with Section 260.140.42 of Title 10 of the
California Code of Regulations. The offer shall be accepted by execution of a
Restricted Stock purchase agreement in the form determined by the Administrator.

                  (b)      Repurchase Option. Unless the Administrator
determines otherwise, the Restricted Stock purchase agreement shall grant the
Company a repurchase option exercisable upon the voluntary or involuntary
termination of the purchaser's service with the Company for any reason
(including death or disability). The purchase price for Shares repurchased
pursuant to the Restricted Stock purchase agreement shall be the original price
paid by the purchaser and may be paid by

                                       8
<PAGE>

cancellation of any indebtedness of the purchaser to the Company. The
repurchase option shall lapse at such rate as the Administrator may determine.
Except with respect to Shares purchased by Officers, Directors and Consultants,
the repurchase option shall in no case lapse at a rate of less than 20% per year
over five (5) years from the date of purchase.

                  (c)      Other Provisions. The Restricted Stock purchase
agreement shall contain such other terms, provisions and conditions not
inconsistent with the Plan as may be determined by the Administrator in its sole
discretion.

                  (d)      Rights as a Stockholder. Once the Stock Purchase
Right is exercised, the purchaser shall have rights equivalent to those of a
stockholder and shall be a stockholder when his or her purchase is entered upon
the records of the duly authorized transfer agent of the Company. No adjustment
shall be made for a dividend or other right for which the record date is prior
to the date the Stock Purchase Right is exercised, except as provided in Section
12 of the Plan.

         12.      Adjustments Upon Changes in Capitalization, Merger or Asset
Sale.

                  (a)      Changes in Capitalization. Subject to any required
action by the stockholders of the Company, the number of shares of Common Stock
covered by each outstanding Option or Stock Purchase Right, and the number of
shares of Common Stock which have been authorized for issuance under the Plan
but as to which no Options or Stock Purchase Rights have yet been granted or
which have been returned to the Plan upon cancellation or expiration of an
Option or Stock Purchase Right, as well as the price per share of Common Stock
covered by each such outstanding Option or Stock Purchase Right, shall be
proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of issued shares of Common Stock effected
without receipt of consideration by the Company. The conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option or Stock
Purchase Right.

                  (b)      Dissolution or Liquidation. In the event of the
proposed dissolution or liquidation of the Company, the Administrator shall
notify each Optionee as soon as practicable prior to the effective date of such
proposed transaction. The Administrator in its discretion may provide for an
Optionee to have the right to exercise his or her Option or Stock Purchase Right
until fifteen (15) days prior to such transaction as to all of the Optioned
Stock covered thereby, including Shares as to which the Option or Stock Purchase
Right would not otherwise be exercisable. In addition, the Administrator may
provide that any Company repurchase option applicable to any Shares purchased
upon exercise of an Option or Stock Purchase Right shall lapse as to all such
Shares, provided the proposed dissolution or liquidation takes place at the time
and in the manner contemplated. To the

                                       9
<PAGE>

extent it has not been previously exercised, an Option or Stock Purchase Right
will terminate immediately prior to the consummation of such proposed action.

                  (c)      Merger or Asset Sale. In the event of a merger of the
Company with or into another corporation, or the sale of substantially all of
the assets of the Company, each outstanding Option and Stock Purchase Right
shall be assumed or an equivalent option or right substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. In the event
that the successor corporation refuses to assume or substitute for the Option or
Stock Purchase Right, the Optionee shall fully vest in and have the right to
exercise the Option or Stock Purchase Right as to all of the Optioned Stock,
including Shares as to which it would not otherwise be vested or exercisable. If
an Option or Stock Purchase Right becomes fully vested and exercisable in lieu
of assumption or substitution in the event of a merger or sale of assets, the
Administrator shall notify the Optionee in writing or electronically that the
Option or Stock Purchase Right shall be fully exercisable for a period of
fifteen (15) days from the date of such notice, and the Option or Stock Purchase
Right shall terminate upon the expiration of such period. For the purposes of
this paragraph, the Option or Stock Purchase Right shall be considered assumed
if, following the merger or sale of assets, the option or right confers the
right to purchase or receive, for each Share of Optioned Stock subject to the
Option or Stock Purchase Right immediately prior to the merger or sale of
assets, the consideration (whether stock, cash, or other securities or property)
received in the merger or sale of assets by holders of Common Stock for each
Share held on the effective date of the transaction (and if holders were offered
a choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding Shares); provided, however, that if such
consideration received in the merger or sale of assets is not solely common
stock of the successor corporation or its Parent, the Administrator may, with
the consent of the successor corporation, provide for the consideration to be
received upon the exercise of the Option or Stock Purchase Right, for each Share
of Optioned Stock subject to the Option or Stock Purchase Right, to be solely
common stock of the successor corporation or its Parent equal in fair market
value to the per share consideration received by holders of Common Stock in the
merger or sale of assets.

         13.      Time of Granting Options and Stock Purchase Rights. The date
of grant of an Option or Stock Purchase Right shall, for all purposes, be the
date on which the Administrator makes the determination granting such Option or
Stock Purchase Right, or such other date as is determined by the Administrator.
Notice of the determination shall be given to each Service Provider to whom an
Option or Stock Purchase Right is so granted within a reasonable time after the
date of such grant.

         14.      Amendment and Termination of the Plan.

                  (a)      Amendment and Termination. The Board may at any time
amend, alter, suspend or terminate the Plan.

                  (b)      Stockholder Approval. The Board shall obtain
stockholder approval of any Plan amendment to the extent necessary and desirable
to comply with Applicable Laws.

                                       10
<PAGE>

                  (c)      Effect of Amendment or Termination. No amendment,
alteration, suspension or termination of the Plan shall impair the rights of any
Optionee, unless mutually agreed otherwise between the Optionee and the
Administrator, which agreement must be in writing and signed by the Optionee and
the Company. Termination of the Plan shall not affect the Administrator's
ability to exercise the powers granted to it hereunder with respect to Options
granted under the Plan prior to the date of such termination.

         15.      Conditions Upon Issuance of Shares.

                  (a)      Legal Compliance. Shares shall not be issued pursuant
to the exercise of an Option unless the exercise of such Option and the issuance
and delivery of such Shares shall comply with Applicable Laws and shall be
further subject to the approval of counsel for the Company with respect to such
compliance.

                  (b)      Investment Representations. As a condition to the
exercise of an Option, the Administrator may require the person exercising such
Option to represent and warrant at the time of any such exercise that the Shares
are being purchased only for investment and without any present intention to
sell or distribute such Shares if, in the opinion of counsel for the Company,
such a representation is required.

         16.      Inability to Obtain Authority. The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

         17.      Reservation of Shares. The Company, during the term of this
Plan, shall at all times reserve and keep available such number of Shares as
shall be sufficient to satisfy the requirements of the Plan.

         18.      Stockholder Approval. The Plan shall be subject to approval by
the stockholders of the Company within twelve (12) months after the date the
Plan is adopted. Such stockholder approval shall be obtained in the degree and
manner required under Applicable Laws.

         19.      Information to Optionees and Purchasers. The Company shall
provide to each Optionee and to each individual who acquires Shares pursuant to
the Plan, not less frequently than annually during the period such Optionee or
purchaser has one or more Options or Stock Purchase Rights outstanding, and, in
the case of an individual who acquires Shares pursuant to the Plan, during the
period such individual owns such Shares, copies of annual financial statements.
The Company shall not be required to provide such statements to key employees
whose duties in connection with the Company assure their access to equivalent
information.

                                       11
<PAGE>

                                   APPENDIX A

                        Rules for Canadian Option Grants

         The following rules shall apply in the case of Option grants to
Canadian residents.

         1.       Definitions. As used herein, the following definitions shall
apply:

                  (a)      "Applicable Laws" means the legal requirements
relating to the administration of stock option plans under Canadian corporate,
securities, and tax laws.

                  (b)      "Disability" means total and permanent disability, as
defined under Applicable Laws.

                  (c)      "Employee" means any person, including officers and
Directors, employed by the Company or any Parent or Subsidiary of the Company,
who does not own more than 10% of the voting power of all classes of stock of
the Company, or any Parent or Subsidiary of the Company, who is a resident of
Canada.

                  (d)      "Fair Market Value" means, as of any date, the dollar
value of Common Stock determined as follows:

                           (i)      If the Common Stock is listed on any
established stock exchange or a national market system, including without
limitation the Nasdaq National Market of the Nasdaq Stock Market, its Fair
Market Value shall be the average quotation price for the last 20 days preceding
the date of determination for such stock (or the average closing bid for such 20
day period, if no sales were reported) as quoted on such exchange or system and
reported in The Wall Street Journal or such other source as the Administrator
deems reliable;

                           (ii)     If the Common Stock is quoted on the Nasdaq
Stock market (but not on the Nasdaq National Market thereof) or regularly quoted
by a recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean between the high bid and low asked prices for the
Common Stock for the last 20 days preceding the date of determination; or

                           (iii)    In the absence of an established market for
the Common Stock, the Fair Market Value thereof shall be determined in good
faith by the Administrator.

         2.       Eligibility. Options granted pursuant to this Appendix A may
be granted only to Employees; provided, however, that the President Directeur
General, the Directeur General and other directors who are also Employees of a
Subsidiary may be granted Options hereunder.

                                       1
<PAGE>

         3.       Term of Plan. Options may be granted under this Appendix A
from the date of the adoption of the Plan by the Board. It shall continue in
effect until the date five years from the date of its adoption, unless
terminated earlier under Section 14 of the Plan.

         4.       Option Price. The Option price for the Shares to be issued
pursuant to exercise of an Option shall be determined by the Administrator upon
the date of grant of the Option and stated in the Option Agreement, but in no
event shall be lower than one hundred percent (100%) of the Fair Market Value on
the date the Option is granted. The Option Price cannot be modified while the
Option is outstanding, except as required by Applicable Laws.

         5.       Exercise of Option; Restriction on Sale.

                  (a)      Options granted hereunder may be exercised to the
extent they have vested. Options granted hereunder shall vest, subject to
Optionee's continuing status as an Employee on such dates, in accordance with
the following vesting schedule: 1/3rd of the Shares subject to the Option shall
vest on the one year anniversary of the Option's Vesting Commencement Date (the
"Vesting Commencement Date") and 1/36th of the Shares subject to the Option
shall vest each month thereafter, so that 100% of the Optioned Stock shall be
exercisable after three years.

                  An Option shall be deemed exercised when the Company receives:
(i) written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
required by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Shares, notwithstanding the exercise of the Option. The
Company shall issue (or cause to be issued) such Shares promptly after the
Option is exercised. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the shares are issued, except as
provided in Section 12 of the Plan.

                  (b)      The Shares subject to this Option may not be
transferred, assigned or hypothecated in any manner otherwise than by will or by
the laws of descent or distribution before the date three (3) years from the
Vesting Commencement Date; provided, however, that the duration of this
restriction on sale shall be automatically adjusted to conform with any changes
to the holding period required for favorable tax and social security treatment
under Applicable Laws.

                  (c)      Termination of Employment Relationship. In the event
that an Optionee's status as an Employee terminates (other than upon the
Optionee's death or Disability), the Optionee may exercise his or her Option,
but only within such period of time as is determined by the Administrator and
only to the extent that the Optionee was entitled to exercise it at the date of
termination (but in no event later than the expiration of the term of such
Option as set forth in the

                                       2
<PAGE>

Option Agreement). If, at the date of termination, the Optionee is not entitled
to exercise his or her entire Option, the Shares covered by the unexercisable
portion of the Option shall revert to the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified by the
Administrator, the Option shall terminate, and the Shares covered by such Option
shall revert to the Plan.

                  (d)      Disability of Optionee. In the event that an
Optionee's status as an Employee terminates as a result of the Optionee's
Disability, the Optionee may exercise his or her Option at any time within six
(6) months from the date of such termination, but only to the extent that the
Optionee was entitled to exercise it at the date of such termination (and in no
event later than the expiration of the term of such Option as set forth in the
Option Agreement). If, at the date of termination, the Optionee is not entitled
to exercise his or her entire Option, the Shares covered by the unexercisable
portion of the Option shall revert to the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified herein,
the Option shall terminate, and the Shares covered by such Option shall revert
to the Plan.

                  (e)      Death of Optionee. In the event of the death of an
Optionee while an Employee, the Option may be exercised at any time within six
(6) months following the date of death by the Optionee's estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but
only to the extent that the Optionee was entitled to exercise the Option at the
date of death (and in no event later than the expiration of the term of such
Option as set forth in the Option Agreement). If, at the time of death, the
Optionee was not entitled to exercise his or her entire Option, the Shares
covered by the unexercisable portion of the Option shall revert to the Plan. If,
after death, the Optionee's estate or a person who acquired the right to
exercise the Option by bequest or inheritance does not exercise the Option
within the time specified herein, the Option shall terminate, and the Shares
covered by such Option shall immediately revert to the Plan.

                                       3
<PAGE>

                              RECRUITSOFT.COM INC.

                                 1999 STOCK PLAN

                             STOCK OPTION AGREEMENT

         Unless otherwise defined herein, the terms defined in the 1999 Stock
Plan shall have the same defined meanings in this Stock Option Agreement.

         1.       NOTICE OF STOCK OPTION GRANT

         The undersigned Optionee has been granted an Option to purchase Common
Stock of the Company, subject to the terms and conditions of the Plan and this
Option Agreement, as follows:

Grant Number

Date of Grant

Vesting Commencement Date

Exercise Price per Share

Total Number of Shares Granted

Total Exercise Price

Type of Option:

Term/Expiration Date:

Vesting Schedule:

         This Option shall be exercisable, in whole or in part, according to the
following vesting schedule:

         Termination Period:

         This Option shall be exercisable for forty-five days after Optionee
ceases to be a Service Provider. Upon Optionee's death or Disability, this
Option may be exercised for one year after Optionee ceases to be a Service
Provider. In no event may Optionee exercise this Option after the
Term/Expiration Date as provided above.

<PAGE>

         2.       AGREEMENT

                  (a) Grant of Option. The Plan Administrator of the Company
hereby grants to the Optionee named in the Notice of Grant (the "Optionee"), an
option (the "Option") to purchase the number of Shares set forth in the Notice
of Grant, at the exercise price per Share set forth in the Notice of Grant (the
"Exercise Price"), and subject to the terms and conditions of the Plan, which is
incorporated herein by reference. Subject to Section 14(c) of the Plan, in the
event of a conflict between the terms and conditions of the Plan and this Option
Agreement, the terms and conditions of the Plan shall prevail.

         If designated in the Notice of Grant as an Incentive Stock Option
("ISO"), this Option is intended to qualify as an Incentive Stock Option as
defined in Section 422 of the Code. Nevertheless, to the extent that it exceeds
the $100,000 rule of Code Section 422(d), this Option shall be treated as a
Nonstatutory Stock Option ("NSO").

                  (b) Exercise of Option.

                           (i) Right to Exercise. This Option shall be
exercisable during its term in accordance with the Vesting Schedule set out in
the Notice of Grant and with the applicable provisions of the Plan and this
Option Agreement.

                           (ii) Method of Exercise. This Option shall be
exercisable by delivery of an exercise notice in the form attached as Exhibit A
(the "Exercise Notice") which shall state the election to exercise the Option,
the number of Shares with respect to which the Option is being exercised, and
such other representations and agreements as may be required by the Company. The
Exercise Notice shall be accompanied by payment of the aggregate Exercise Price
as to all Exercised Shares. This Option shall be deemed to be exercised upon
receipt by the Company of such fully executed Exercise Notice accompanied by the
aggregate Exercise Price.

         No Shares shall be issued pursuant to the exercise of an Option unless
such issuance and such exercise complies with Applicable Laws. Assuming such
compliance, for income tax purposes the Shares shall be considered transferred
to the Optionee on the date on which the Option is exercised with respect to
such Shares.

                  (c) Optionee's Representations. In the event the Shares have
not been registered under the Securities Act of 1933, as amended, at the time
this Option is exercised, the Optionee shall, if required by the Company,
concurrently with the exercise of all or any portion of this Option, deliver to
the Company his or her Investment Representation Statement in the form attached
hereto as Exhibit B.

                  (d) Lock-Up Period. Optionee hereby agrees that, if so
requested by the Company or any representative of the underwriters (the
"Managing Underwriter") in connection with any registration of the offering of
any securities of the Company under the Securities Act, Optionee shall not sell
or otherwise transfer any Shares or other securities of the Company during the
180-day

                                                                             -2-
<PAGE>

period (or such other period as may be requested in writing by the Managing
Underwriter and agreed to in writing by the Company) (the "Market Standoff
Period") following the effective date of a registration statement of the Company
filed under the Securities Act. Such restriction shall apply only to the first
registration statement of the Company to become effective under the Securities
Act that includes securities to be sold on behalf of the Company to the public
in an underwritten public offering under the Securities Act. The Company may
impose stop-transfer instructions with respect to securities subject to the
foregoing restrictions until the end of such Market Standoff Period.

                  (e) Method of Payment. Payment of the aggregate Exercise Price
shall be by any of the following, or a combination thereof, at the election of
the Optionee:

                           (i) cash or check;

                           (ii) consideration received by the Company under a
formal cashless exercise program adopted by the Company in connection with the
Plan; or

                           (iii) surrender of other Shares which, (i) in the
case of Shares acquired upon exercise of an option, have been owned by the
Optionee for more than six (6) months on the date of surrender, and (ii) have a
Fair Market Value on the date of surrender equal to the aggregate Exercise Price
of the Exercised Shares.

                  (f) Restrictions on Exercise. This Option may not be exercised
until such time as the Plan has been approved by the stockholders of the
Company, or if the issuance of such Shares upon such exercise or the method of
payment of consideration for such shares would constitute a violation of any
Applicable Law.

                  (g) Non-Transferability of Option. This Option may not be
transferred in any manner otherwise than by will or by the laws of descent or
distribution and may be exercised during the lifetime of Optionee only by
Optionee. The terms of the Plan and this Option Agreement shall be binding upon
the executors, administrators, heirs, successors and assigns of the Optionee.

                  (h) Term of Option. This Option may be exercised only within
the term set out in the Notice of Grant, and may be exercised during such term
only in accordance with the Plan and the terms of this Option.

                  (i) Tax Consequences. Set forth below is a brief summary as of
the date of this Option of some of the federal tax consequences of exercise of
this Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE OPTIONEE
SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE
SHARES.

                           (i) Exercise of NSO. There may be a regular federal
income tax liability upon the exercise of an NSO. The Optionee will be treated
as having received compensation income (taxable at ordinary income tax rates)
equal to the excess, if any, of the Fair Market Value of the

                                                                             -3-
<PAGE>

Shares on the date of exercise over the Exercise Price. If Optionee is an
Employee or a former Employee, the Company will be required to withhold from
Optionee's compensation or collect from Optionee and pay to the applicable
taxing authorities an amount in cash equal to a percentage of this compensation
income at the time of exercise, and may refuse to honor the exercise and refuse
to deliver Shares if such withholding amounts are not delivered at the time of
exercise.

                           (ii) Exercise of ISO. If this Option qualifies as an
ISO, there will be no regular federal income tax liability upon the exercise of
the Option, although the excess, if any, of the Fair Market Value of the Shares
on the date of exercise over the Exercise Price will be treated as an adjustment
to the alternative minimum tax for federal tax purposes and may subject the
Optionee to the alternative minimum tax in the year of exercise.

                           (iii) Disposition of Shares. In the case of an NSO,
if Shares are held for at least one year, any gain realized on disposition of
the Shares will be treated as long-term capital gain for federal income tax
purposes. In the case of an ISO, if Shares transferred pursuant to the Option
are held for at least one year after exercise and of at least two years after
the Date of Grant, any gain realized on disposition of the Shares will also be
treated as long-term capital gain for federal income tax purposes. If Shares
purchased under an ISO are disposed of within one year after exercise or two
years after the Date of Grant, any gain realized on such disposition will be
treated as compensation income (taxable at ordinary income rates) to the extent
of the difference between the Exercise Price and the lesser of (1) the Fair
Market Value of the Shares on the date of exercise, or (2) the sale price of the
Shares. Any additional gain will be taxed as capital gain, short-term or
long-term depending on the period that the ISO Shares were held.

                           (iv) Notice of Disqualifying Disposition of ISO
Shares. If the Option granted to Optionee herein is an ISO, and if Optionee
sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on
or before the later of (1) the date two years after the Date of Grant, or (2)
the date one year after the date of exercise, the Optionee shall immediately
notify the Company in writing of such disposition. Optionee agrees that Optionee
may be subject to income tax withholding by the Company on the compensation
income recognized by the Optionee.

                  (j) Entire Agreement; Governing Law. The Plan is incorporated
herein by reference. The Plan and this Option Agreement constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede
in their entirety all prior undertakings and agreements of the Company and
Optionee with respect to the subject matter hereof, and may not be modified
adversely to the Optionee's interest except by means of a writing signed by the
Company and Optionee. This agreement is governed by the internal substantive
laws but not the choice of law rules of California.

                  (k) No Guarantee of Continued Service. OPTIONEE ACKNOWLEDGES
AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS
EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (NOT
THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES
HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE
TRANSACTIONS

                                                                             -4-
<PAGE>

CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT
CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE
PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT
INTERFERE IN ANY WAY WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO TERMINATE
OPTIONEE'S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT
CAUSE.

                  Optionee acknowledges receipt of a copy of the Plan and
represents that he or she is familiar with the terms and provisions thereof, and
hereby accepts this Option subject to all of the terms and provisions thereof.
Optionee has reviewed the Plan and this Option in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option and
fully understands all provisions of the Option. Optionee hereby agrees to accept
as binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions arising under the Plan or this Option. Optionee
further agrees to notify the Company upon any change in the residence address
indicated below.

OPTIONEE                                      RECRUITSOFT.COM INC.

___________________________________           ________________________________
Signature                                     By

___________________________________           ________________________________
Print Name                                    Title

___________________________________
___________________________________
Residence Address

                                                                             -5-
<PAGE>

                                    EXHIBIT A

                                 1999 STOCK PLAN

                                 EXERCISE NOTICE

Recruitsoft.com Inc.
[address]

Attention: [Title]

         1.       Exercise of Option. Effective as of today,
____________________, the undersigned ("Optionee") hereby elects to exercise
Optionee's option to purchase _________ shares of the Common Stock (the
"Shares") of Recruitsoft.com, Inc. (the "Company") under and pursuant to the
1999 Stock Plan (the "Plan") and the Stock Option Agreement dated
____________________(the "Option Agreement").

         2.       Delivery of Payment. Purchaser herewith delivers to the
Company the full purchase price of the Shares, as set forth in the Option
Agreement.

         3.       Representations of Optionee. Optionee acknowledges that
Optionee has received, read and understood the Plan and the Option Agreement and
agrees to abide by and be bound by their terms and conditions.

         4.       Rights as Stockholder. Until the issuance of the Shares (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company), no right to vote or receive dividends
or any other rights as a stockholder shall exist with respect to the Optioned
Stock, notwithstanding the exercise of the Option. The Shares shall be issued to
the Optionee as soon as practicable after the Option is exercised. No adjustment
shall be made for a dividend or other right for which the record date is prior
to the date of issuance except as provided in Section 12 of the Plan.

         5.       Company's Right of First Refusal. Before any Shares held by
Optionee or any transferee (either being sometimes referred to herein as the
"Holder") may be sold or otherwise transferred (including transfer by gift or
operation of law), the Company or its assignee(s) shall have a right of first
refusal to purchase the Shares on the terms and conditions set forth in this
Section (the "Right of First Refusal").

                  (a)      Notice of Proposed Transfer. The Holder of the Shares
shall deliver to the Company a written notice (the "Notice") stating: (i) the
Holder's bona fide intention to sell or otherwise transfer such Shares; (ii) the
name of each proposed purchaser or other transferee ("Proposed Transferee");
(iii) the number of Shares to be transferred to each Proposed Transferee; and
(iv) the bona fide cash price or other consideration for which the Holder
proposes to transfer the

<PAGE>

Shares (the "Offered Price"), and the Holder shall offer the Shares at the
Offered Price to the Company or its assignee(s).

                  (b)      Exercise of Right of First Refusal. At any time
within thirty (30) days after receipt of the Notice, the Company and/or its
assignee(s) may, by giving written notice to the Holder, elect to purchase all,
but not less than all, of the Shares proposed to be transferred to any one or
more of the Proposed Transferees, at the purchase price determined in accordance
with subsection (c) below.

                  (c)      Purchase Price. The purchase price ("Purchase Price")
for the Shares purchased by the Company or its assignee(s) under this Section
shall be the Offered Price. If the Offered Price includes consideration other
than cash, the cash equivalent value of the non-cash consideration shall be
determined by the Board of Directors of the Company in good faith.

                  (d)      Payment. Payment of the Purchase Price shall be made,
at the option of the Company or its assignee(s), in cash (by check), by
cancellation of all or a portion of any outstanding indebtedness of the Holder
to the Company (or, in the case of repurchase by an assignee, to the assignee),
or by any combination thereof within 30 days after receipt of the Notice or in
the manner and at the times set forth in the Notice.

                  (e)      Holder's Right to Transfer. If all of the Shares
proposed in the Notice to be transferred to a given Proposed Transferee are not
purchased by the Company and/or its assignee(s) as provided in this Section,
then the Holder may sell or otherwise transfer such Shares to that Proposed
Transferee at the Offered Price or at a higher price, provided that such sale or
other transfer is consummated within 120 days after the date of the Notice, that
any such sale or other transfer is effected in accordance with any applicable
securities laws and that the Proposed Transferee agrees in writing that the
provisions of this Section shall continue to apply to the Shares in the hands of
such Proposed Transferee. If the Shares described in the Notice are not
transferred to the Proposed Transferee within such period, a new Notice shall be
given to the Company, and the Company and/or its assignees shall again be
offered the Right of First Refusal before any Shares held by the Holder may be
sold or otherwise transferred.

                  (f)      Exception for Certain Family Transfers. Anything to
the contrary contained in this Section notwithstanding, the transfer of any or
all of the Shares during the Optionee's lifetime or on the Optionee's death by
will or intestacy to the Optionee's immediate family or a trust for the benefit
of the Optionee's immediate family shall be exempt from the provisions of this
Section. "Immediate Family" as used herein shall mean spouse, lineal descendant
or antecedent, father, mother, brother or sister. In such case, the transferee
or other recipient shall receive and hold the Shares so transferred subject to
the provisions of this Section, and there shall be no further transfer of such
Shares except in accordance with the terms of this Section.

                  (g)      Termination of Right of First Refusal. The Right of
First Refusal shall terminate as to any Shares upon the first sale of Common
Stock of the Company to the general public

                                                                             -2-
<PAGE>

pursuant to a registration statement filed with and declared effective by the
Securities and Exchange Commission under the Securities Act of 1933, as amended.

         6.       Tax Consultation. Optionee understands that Optionee may
suffer adverse tax consequences as a result of Optionee's purchase or
disposition of the Shares. Optionee represents that Optionee has consulted with
any tax consultants Optionee deems advisable in connection with the purchase or
disposition of the Shares and that Optionee is not relying on the Company for
any tax advice.

         7.       Restrictive Legends and Stop-Transfer Orders.

                  (a)      Legends. Optionee understands and agrees that the
Company shall cause the legends set forth below or legends substantially
equivalent thereto, to be placed upon any certificate(s) evidencing ownership of
the Shares together with any other legends that may be required by the Company
or by state or federal securities laws:

                  THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
                  UNDER THE SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE
                  OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
                  HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN
                  THE OPINION OF COMPANY COUNSEL SATISFACTORY TO THE ISSUER OF
                  THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
                  HYPOTHECATION IS IN COMPLIANCE THEREWITH.

                  THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
                  CERTAIN RESTRICTIONS ON TRANSFER AND A RIGHT OF FIRST REFUSAL
                  HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE
                  EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF
                  THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL
                  OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF
                  FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES.

                  (b)      Stop-Transfer Notices. Optionee agrees that, in order
to ensure compliance with the restrictions referred to herein, the Company may
issue appropriate "stop transfer" instructions to its transfer agent, if any,
and that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

                  (c)      Refusal to Transfer. The Company shall not be
required (i) to transfer on its books any Shares that have been sold or
otherwise transferred in violation of any of the provisions of this Exercise
Notice or (ii) to treat as owner of such Shares or to accord the right to vote
or pay dividends to any purchaser or other transferee to whom such Shares shall
have been so transferred.

                                                                             -3-
<PAGE>

         8.       Successors and Assigns. The Company may assign any of its
rights under this Exercise Notice to single or multiple assignees, and this
Exercise Notice shall inure to the benefit of the successors and assigns of the
Company. Subject to the restrictions on transfer herein set forth, this Exercise
Notice shall be binding upon Optionee and his or her heirs, executors,
administrators, successors and assigns.

         9.       Interpretation. Any dispute regarding the interpretation of
this Exercise Notice shall be submitted by Optionee or by the Company forthwith
to the Administrator which shall review such dispute at its next regular
meeting. The resolution of such a dispute by the Administrator shall be final
and binding on all parties.

         10.      Governing Law; Severability. This Exercise Notice is governed
by the internal substantive laws but not the choice of law rules, of California.

         11.      Entire Agreement. The Plan and Option Agreement are
incorporated herein by reference. This Exercise Notice, the Plan, the Option
Agreement and the Investment Representation Statement constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede
in their entirety all prior undertakings and agreements of the Company and
Optionee with respect to the subject matter hereof, and may not be modified
adversely to the Optionee's interest except by means of a writing signed by the
Company and Optionee.

Submitted by:                        Accepted by:

OPTIONEE                             RECRUITSOFT.COM INC.

_______________________________      _______________________________________
Signature                            By

_______________________________      _______________________________________
Print Name                           Title

Address:                             Address:
_______________________________      _______________________________________

_______________________________      _______________________________________

                                     _______________________________________
                                     Date Received

                                                                             -4-
<PAGE>

                                    EXHIBIT B

                       INVESTMENT REPRESENTATION STATEMENT

            OPTIONEE:

            COMPANY:    RECRUITSOFT.COM INC.

            SECURITY:   COMMON STOCK

            AMOUNT:

            DATE:

         In connection with the purchase of the above-listed Securities, the
undersigned Optionee represents to the Company the following:

         (a)      Optionee is aware of the Company's business affairs and
financial condition and has acquired sufficient information about the Company to
reach an informed and knowledgeable decision to acquire the Securities. Optionee
is acquiring these Securities for investment for Optionee's own account only and
not with a view to, or for resale in connection with, any "distribution" thereof
within the meaning of the Securities Act of 1933, as amended (the "Securities
Act").

         (b)      Optionee acknowledges and understands that the Securities
constitute "restricted securities" under the Securities Act and have not been
registered under the Securities Act in reliance upon a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide
nature of Optionee's investment intent as expressed herein. In this connection,
Optionee understands that, in the view of the Securities and Exchange
Commission, the statutory basis for such exemption may be unavailable if
Optionee's representation was predicated solely upon a present intention to hold
these Securities for the minimum capital gains period specified under tax
statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one year or any other fixed
period in the future. Optionee further understands that the Securities must be
held indefinitely unless they are subsequently registered under the Securities
Act or an exemption from such registration is available. Optionee further
acknowledges and understands that the Company is under no obligation to register
the Securities. Optionee understands that the certificate evidencing the
Securities will be imprinted with a legend which prohibits the transfer of the
Securities unless they are registered or such registration is not required in
the opinion of counsel satisfactory to the Company, and any other legend
required under applicable state securities laws.

         (c)      Optionee is familiar with the provisions of Rule 701 and Rule
144, each promulgated under the Securities Act, which, in substance, permit
limited public resale of "restricted securities"

                                                                             -1-
<PAGE>

acquired, directly or indirectly from the issuer thereof, in a non-public
offering subject to the satisfaction of certain conditions. Rule 701 provides
that if the issuer qualifies under Rule 701 at the time of the grant of the
Option to the Optionee, the exercise will be exempt from registration under the
Securities Act. In the event the Company becomes subject to the reporting
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934,
ninety (90) days thereafter (or such longer period as any market stand-off
agreement may require) the Securities exempt under Rule 701 may be resold,
subject to the satisfaction of certain of the conditions specified by Rule 144,
including: (1) the resale being made through a broker in an unsolicited
"broker's transaction" or in transactions directly with a market maker (as said
term is defined under the Securities Exchange Act of 1934); and, in the case of
an affiliate, (2) the availability of certain public information about the
Company, (3) the amount of Securities being sold during any three month period
not exceeding the limitations specified in Rule 144(e), and (4) the timely
filing of a Form 144, if applicable.

         In the event that the Company does not qualify under Rule 701 at the
time of grant of the Option, then the Securities may be resold in certain
limited circumstances subject to the provisions of Rule 144, which requires the
resale to occur not less than one year after the later of the date the
Securities were sold by the Company or the date the Securities were sold by an
affiliate of the Company, within the meaning of Rule 144; and, in the case of
acquisition of the Securities by an affiliate, or by a non-affiliate who
subsequently holds the Securities less than two years, the satisfaction of the
conditions set forth in sections (1), (2), (3) and (4) of the paragraph
immediately above.

         (d)      Optionee further understands that in the event all of the
applicable requirements of Rule 701 or 144 are not satisfied, registration under
the Securities Act, compliance with Regulation A, or some other registration
exemption will be required; and that, notwithstanding the fact that Rules 144
and 701 are not exclusive, the Staff of the Securities and Exchange Commission
has expressed its opinion that persons proposing to sell private placement
securities other than in a registered offering and otherwise than pursuant to
Rules 144 or 701 will have a substantial burden of proof in establishing that an
exemption from registration is available for such offers or sales, and that such
persons and their respective brokers who participate in such transactions do so
at their own risk. Optionee understands that no assurances can be given that any
such other registration exemption will be available in such event.

                                        Signature of Optionee:

                                        _______________________________________

Date: _____________________

                                                                             -2-

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