Document:

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                                                                    EXHIBIT 10.4

                       EXPEDIA, INC./PEOPLESUPPORT, INC.
                            CUSTOMER SUPPORT SERVICES
                                    AGREEMENT

This Customer Support Services Agreement (the "Agreement") is entered into by
and between Expedia, Inc., a Washington corporation located at 13810 SE Eastgate
Way, Suite 400, Bellevue, WA 98005 ("EI"), and PeopleSupport, Inc., a Delaware
corporation, located at 1100 Glendon Avenue, 14th Floor, Los Angeles, CA 90024
("COMPANY") to be effective as of December 11, 2000 ("Effective Date").

                                    Recitals

WHEREAS, EI has developed a proprietary application for arranging, planning and
reserving air, hotel and car rental transactions on the Internet along with
other electronic commerce applications;

WHEREAS, EI operates a web site known as "Expedia," that provides on-line travel
services, using its proprietary application; and

WHEREAS, EI has requested that COMPANY provide, and COMPANY has agreed to
provide, certain customer support services and other services to the customers
of Expedia.

NOW, THEREFORE, in consideration of the mutual covenants herein, the parties
hereby agree as follows:

                                    Agreement

1. COMPANY Services.

         (a) General. COMPANY agrees to provide customer support, en route
assistance, quality control and other services, including without limitation
those identified in Exhibit A (the "Services") to customers of Expedia, on the
terms and conditions provided herein in accordance with (i) EI standard customer
service policies and procedures as detailed in documentation provided by EI to
COMPANY (including, without limitation, EI policies set forth in Exhibit E),
which may be modified by EI from time to time in its sole discretion; and (ii)
the performance requirements set forth in Exhibit C. The parties shall mutually
prepare a procedures manual prior to launch and maintain such manual, setting
forth detailed procedures for providing the Services.

         (b) Facilities. COMPANY shall provide, maintain and staff one (1) or
more customer care (phone and email support) facilities, (the "Facilities") to
provide the Services set forth in Exhibit A of the Agreement. EI owns the
toll-free telephone number that will be posted on the Expedia.com Web Site
("Customer Service Number"). COMPANY, at its sole cost, will purchase, install
and maintain all software, hardware and telecommunications equipment at the
Facilities that are necessary to provide the Services under this Agreement.
COMPANY is responsible for maintaining all necessary telecommunications
equipment and services at the Facilities to provide the Services, including all
costs associated therewith. COMPANY shall

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ensure that the Facilities has, and shall maintain, an infrastructure capable of
supporting a variety of communication methods as may be reasonably required by
EI. The technology to be provided by COMPANY for purposes of this Agreement
shall meet the requirements set forth by EI as provided to COMPANY in writing
from time to time. Other facilities may be added as mutually agreed by amendment
of this Agreement. The technology to be provided by COMPANY for purposes of this
Agreement shall meet the requirements set forth by EI as provided from time to
time.

         (c) Software, Hardware and Equipment. It is understood that COMPANY
will provide leasehold improvements, telecommunication systems, furniture and
fixtures, computers and proprietary software and, as between the parties, this
software and equipment will be owned by COMPANY.

         (d) Problem Resolution. COMPANY agrees to resolve customer complaints
in a manner that meets or exceeds the performance requirements as set forth in
Exhibit C. In the event COMPANY is unable to resolve a problem, COMPANY may
escalate the problem to EI-designated representative(s) in accordance with
applicable procedures.

         (e) ACD System. COMPANY will maintain an Automatic Call Distribution
("ACD") system capable of providing the information identified in Exhibits C and
G to EI in a format designated by EI. If COMPANY changes its current ACD system
or adds facilities, COMPANY will ensure that any such new ACD system is capable
of providing the information set forth in Exhibits C and G. COMPANY shall
provide EI with standard specifications and documentation from its ACD system
with respect to the Services provided by COMPANY under this Agreement.

         (f) Disaster Recovery. COMPANY must have a documented disaster recovery
plan. Such plan shall set forth the implementation and management of disaster
recovery procedures and shall be submitted to Expedia for reasonable review and
approval within thirty (30) days of the execution of this Agreement. At a
minimum, the disaster recovery plan shall include the following:

         Recovery Plan:

                  -        Contact emergency services, as needed.

                  -        Contact TRAVSUP HOTPAGER and notify them of the
                           nature of the problem, the estimated length of the
                           problem and the estimated impact on service delivery.

                  -        Contact site and notify them of the same items as in
                           #1 and #2, immediately above

                  -        Contact Expedia Customer Service management via
                           e-mail and voicemail and notify them of the same
                           items as in #1 and #2, above

                  -        Work to estimate length and severity of problem to
                           determine what level of response is needed."

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         (g) Backup-up Power. COMPANY shall supply line-conditioned,
uninterruptible power supply ("UPS") backed-up power to the Facilities in order
to protect against line spikes, power surges, and temporary power outages and
fluctuations.

         (h) Facilities Access. COMPANY shall take reasonable security measures,
at least as great as the precautions it takes to protect its own confidential
information, but no less than reasonable care, to keep confidential the
Confidential Information of EI. COMPANY shall restrict access to the Facilities
as reasonably necessary to ensure the security of EI's Confidential Information.

         (i) Onsite Visit. At EI's discretion, with reasonable advance notice,
EI reserves the right to make onsite visits to the Facilities. In connection
with such visits, COMPANY will provide to EI, as and when required by EI, access
for a reasonable number of EI personnel to office premises at the sites equipped
with standard office equipment as available to personnel of COMPANY in proximate
offices, at no charge.

         (j) Training. COMPANY will ensure that all its employees and
EI-permitted contractors and subcontractors performing any Services hereunder
agree to undertake and successfully complete all training programs provided by
EI with respect to the Services as EI in its sole discretion deems necessary to
prepare COMPANY to provide the Services outlined in this Agreement. Training
will be conducted at a mutually agreed upon facility where EI shall provide
"train-the-trainer" training at no charge to COMPANY, except that all travel,
accommodation and related expenses for COMPANY employees and employees of
contractors or subcontractors, shall be the responsibility of COMPANY, or such
contractors or subcontractors, respectively. COMPANY acknowledges and agrees
that as a result of EI providing "train-the-trainer" training, COMPANY shall be
responsible for internal and ongoing training of its personnel after receiving
initial "train-the-trainer" training. COMPANY will designate a primary contact
to work with EI to address ongoing training needs. EI agrees to provide the
necessary training materials, for limited duplication, upon request by COMPANY
and following EI approval, to be used by COMPANY to provide training as required
under the terms of this Agreement. Further, COMPANY agrees that it shall not
charge EI for time that COMPANY employees and employees of contractors or
subcontractors spend in "train-the trainer" training. Notwithstanding the
foregoing, EI shall pay to COMPANY a "Training Fee" for initial training costs
in accordance with the terms set forth in Section 2 below and in Exhibit D.

         (k) Implementation Services. Upon execution of this Agreement, COMPANY
shall prepare a implementation plan setting forth detailed procedures for
providing the Services (the "Implementation Plan").

         (1) Reporting. For systems under the control of COMPANY, COMPANY shall
comply with all applicable reporting requirements by providing EI with the
reports specified in Exhibits C and G (each a "Report"), including management
reporting and any other information requested from time to time with respect to
the Services performed. All Reports shall be complete and accurate. Each Report,
whether in electronic or paper format, shall meet the standard Report
requirements identified for the Report in Exhibits C and F or as specifically
requested by EI from time to time. COMPANY shall deliver each Report, and all
supporting documentation therefore, within the time and date specified in
Exhibits C or F or as specifically

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requested by EI from time to time. COMPANY shall correct any errors in a Report
within five (5) business days following EI's notice specifying the item in
respect of which an error may have occurred.

         (m) Confidentiality of Service Requests/Calls. Nothing contained in
this Agreement shall give COMPANY or its agents or contractors, the right to
use, modify, reproduce, distribute and/or publish any EI customer records,
including without limitation reservations, service records or customer
complaints resolved by COMPANY during the fulfillment of COMPANY obligations
hereunder, all of which shall be considered Confidential Information under
Section 10 of this Agreement.

         (n) Change of Service. The parties agree, that from time to time during
the term of this Agreement, EI may request reasonable non-material changes in
the scope or manner of performance of the Services being performed by COMPANY
hereunder, and that COMPANY shall comply with such non-material changes.
Further, the parties agree, that from time to time during the term of this
Agreement, EI may request reasonable material changes in the scope or manner of
performance of the Services being performed by COMPANY ("Material Change
Request"). Upon receipt of each Material Change Request, COMPANY will evaluate
the impact that such Change Request will have on the resources required by
COMPANY to perform the Services and the amounts then payable to COMPANY
hereunder. COMPANY will give written notice to EI as to the results of such
evaluation ("Material Change Proposal") within five (5) business days following
receipt of that Material Change Request, unless otherwise agreed to by EI. If EI
does not receive a Material Change Proposal in response to the
applicable Materia1 Change Request within five (5) business days, the Material
Change Request is deemed accepted. In the event that the Material Change
Proposal establishes that COMPANY'S performance of the Service in compliance
with the applicable Material Change Request would materially, and adversely
impact COMPANY resources and revenues, the parties agree to negotiate in good
faith to reach mutually agreeable terms for the performance of, and payment for
the Services requested under the Material Change Request.

2. Payment.

         (a) COMPANY is fully responsible for all costs incurred in providing
the Services under this Agreement and all Exhibits hereto, independent of any
provision for reimbursement set forth herein.

         (b) EI will pay COMPANY the amounts specified in Exhibit D subject to
adjustments, deductions or credits to such amounts as provided for in this
Agreement or any Exhibit hereto. COMPANY will invoice EI Accounts Payable on a
monthly basis, on or before the fifth-tenth (15th) day of the month following
the month for which activity is being invoiced, and shall include full
documentation supporting such invoice. Payment terms are net thirty (30) days
after receipt of invoice.

3. Ownership and License Grants.

         (a) Use of EI's Name. This Agreement does not constitute a trademark or
service mark license. As of the Effective Date, EI shall be deemed to have
granted COMPANY a non-

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exclusive, personal, non-transferable, non-assignable, royalty-free license to
use the Expedia(R) name solely in conjunction with answering and responding to
email inquiries, and incoming Calls from, making outbound callbacks to
Expedia customers as necessary for providing Services pursuant to the terms of
this Agreement. Such license grant shall remain in effect while this Agreement
is in good standing, but shall expire at the expiration or earlier termination
of this Agreement. Specific additional terms and conditions pertaining to this
license grant are set forth in Exhibit H, which is incorporated herein by this
reference. COMPANY may list EI in its customer listing. Notwithstanding the
foregoing, COMPANY shall not use EI's name, except as set forth in this
Agreement, or as otherwise approved in writing by EI.

         (b) Customer Information. Except as otherwise provided herein, COMPANY
acknowledges and agrees that the information acquired by COMPANY in connection
with the provision of Services pursuant to this Agreement, including without
limitation customer and prospect information, sales information, back office and
general ledger data, customer travel reservation and itinerary information, and
EI customer lists and updates (including customer names, addresses and telephone
numbers) (collectively, "Customer Data") shall be considered proprietary
information of EI, including all Customer Data stored using any COMPANY
database, and all right, title and interest in the Customer Data is owned by EI.
COMPANY shall use such Customer Data only as necessary to perform the Services
in accordance with this Agreement and shall maintain such Customer Data in
strict confidence in accordance with the provisions of Section 10 hereof. Upon
request from EI, COMPANY shall provide EI with any or all Customer Data in
COMPANY'S possession. Upon termination or expiration of this Agreement, COMPANY
shall within ten (10) days thereafter, or within such other timeframe as EI may
reasonably agree to, provide EI with all documents and materials containing
Customer Data (including data stored or maintained in electronic format, whether
or not created or stored using a COMPANY database), together with all other
materials and property of EI, which are in its possession or under its control.

         (c) Custom Tools. At the sole discretion of EI, EI may grant COMPANY a
non-exclusive, personal, non-transferable, non-assignable, royalty-free license
to access and use certain software tools ("Expedia User Management Tools")
developed or to be developed by EI and to be identified from time to time during
the term of this Agreement solely for the purpose of assisting COMPANY in
providing the Services to Expedia customers under this Agreement. Upon the
expiration or termination of this Agreement, COMPANY'S license to use the
Expedia User Management Tools will automatically terminate.

         (d) EI Intellectual Property Rights. EI owns all right, title and
interest in and to any software or other intellectual property it provides to
COMPANY during the term of this Agreement, including without limitation the
items listed on Exhibit B, any and all Expedia User Management Tools, and
training materials. All software so provided shall he used by COMPANY in
accordance with the terms of the End User License Agreement ("EULA")
accompanying the software, however, that notwithstanding any provision in a EULA
to the contrary, COMPANY may not transfer any such software so provided.

         (e) COMPANY Software License. COMPANY shall grant EI a non-exclusive,
personal, non-transferable, non-assignable, royalty-free license to access and
use certain intellectual property consisting of all computer programming and/or
formatting code or

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operating instructions that is owned or licensed by COMPANY and employed in the
delivery of the Services (collectively "COMPANY Intellectual Property"), and to
be identified from time to time during the term of this Agreement solely for the
purpose of assisting COMPANY in providing the Services to Expedia customers
under this Agreement. Upon the expiration or termination of this Agreement, EI's
license to use the COMPANY Intellectual Property will automatically terminate.

         (f) COMPANY owns all right, title and interest in and to any COMPANY
Intellectual Property that it provides to EI during the term of this Agreement.
All COMPANY Intellectual Property so provided shall be used by EI in accordance
with the terms of the End User License Agreement ("EULA") accompanying the
COMPANY Intellectual Property, if any, however, that notwithstanding any
provision in a EULA to the contrary, EI may not transfer any such COMPANY
Intellectual Property so provided.

4. Warranties.

         (a)      COMPANY warrants that:

                  (i) It possesses all necessary authority to enter into this
         Agreement, and that by so doing it does not violate any other
         agreements to which it is a party; and

                  (ii) The Services will be performed in a professional manner
         and shall conform in all material respects with the service
         requirements set forth in this Agreement including, without limitation,
         those set forth in Exhibits A and C; and

                  (iii) The Services will be performed by (i) employees of
         COMPANY acting within the scope of their employment who have signed
         confidentiality agreements with COMPANY (with appropriate
         acknowledgments of confidentiality) substantially in the form attached
         as Exhibit K, and

                  (iv) In providing Services to Expedia customers and any other
         persons or entities, COMPANY shall make no representations nor
         undertake any obligations on behalf of EI concerning the Services
         and/or any other EI products or services beyond those expressly made or
         undertaken by Expedia and communicated to Expedia customers on the
         Expedia web site. COMPANY, including all of COMPANY'S employees,
         temporary employees and contractors shall conform to all applicable
         laws and government rules and regulations. COMPANY assumes all
         responsibility for providing any training that may be required to
         ensure compliance with such legal requirements. COMPANY shall offer to
         Expedia customers only those Services authorized by this Agreement,
         advising customers requesting other services that Expedia does not
         provide such services, and then documenting and advising EI of all such
         requests; and

                   (v) that COMPANY owns, or has valid license to, all worldwide
          rights, title and interest in the COMPANY Intellectual Property,
          employed in the delivery of the Services, or licensed to EI, and that
          such COMPANY Intellectual Property and any and all other software and
          materials COMPANY publishes or uses in providing the Services under
          this Agreement do not and will not infringe any intellectual property
          rights owned

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         by EI or any other person or entity including, but not limited to, any
         copyright, patent, trademark or trade secret; and

         (vi) Except as otherwise provided in this Agreement, COMPANY will not
reproduce, sell, publish, or in any manner commercially exploit the Expedia(R)
name or any information or derivatives of information acquired in connection
with its provision of Services or allow such reproduction, sale, publication or
exploitation by any employee or person retained for the purpose of providing
such services except as agreed to in writing by EI; and

         (vii) COMPANY agrees to work cooperatively and professionally in
 conjunction with third parties who are providing similar services to EI to
 ensure that Expedia customers receive consistent high quality Services under
 this Agreement.

         (viii) Prior to the commencement of the work to be performed hereunder
and throughout the entire performance by COMPANY, COMPANY shall procure and
maintain insurance adequate to cover any and all liability which COMPANY may
incur as a result of the performance of work included in this Agreement. Such
insurance shall be in a form and with insurers acceptable to EI, and shall
comply with the following minimum requirements:

                           (A) Commercial General Liability insurance of the
                  Occurrence Form, with policy limits of not less than Two
                  Million Dollars (US$2,000,000.00) combined single limit each
                  occurrence for Bodily Injury and Property Damage combined, and
                  One Million Dollars (US$1,000,000.00) Personal and Advertising
                  Injury Limit.

                           (B) Professional Liability And Errors & Omissions
                  Liability Insurance with policy limits of not less than Three
                  Million Dollars (US$3,000,000.00) each claim with a deductible
                  of not more than Twenty-five Thousand Dollars (US$25,000.00).
                  Such insurance shall include coverage for infringement of
                  proprietary rights of any third party, including without
                  limitation copyright, trade secret and trademark infringement
                  as related to COMPANY'S performance under this Agreement.
                  Throughout the term of this Agreement, the Professional
                  Liability And Errors & Omissions Liability Insurance
                  retroactive coverage date will be no later than the Effective
                  Date of this Agreement. Upon expiration or termination of this
                  Agreement, COMPANY will maintain an extended reporting period
                  providing that claims first made and reported to the insurance
                  company within one year after the end of this Agreement will
                  deemed to have been made during the policy period.

                  A copy of the certificate of insurance shall be included as
         Exhibit J. Failure by COMPANY to furnish certificates of insurance or
         failure by EI to request same shall not constitute a waiver by EI of
         any of the insurance requirements set forth herein. COMPANY shall
         notify EI in writing at least thirty (30) days advance if COMPANY'S
         insurance coverage is to be canceled or materially altered so as not to
         comply with the requirements of this section.

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                  In the event of such failure on the part of COMPANY to provide
         the certificates as requested herein, and in the event of liability or
         expense incurred by EI as a result of such failure by COMPANY, COMPANY
         hereby agrees to indemnify EI for all liability and expense (including
         reasonable attorneys' fees and expenses associated with establishing
         the right to indemnity) incurred by EI as a result of such failure by
         COMPANY; and

                    (ix) TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW,
         COMPANY AND ITS SUPPLIERS DISCLAIM ALL OTHER WARRANTIES AND CONDITIONS,
         EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT TO THE PRODUCTS
         AND SERVICES PROVIDED PURSUANT TO THIS AGREEMENT, INCLUDING, BUT NOT
         LIMITED TO, THE IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITY,
         FITNESS FOR A PARTICULAR PURPOSE, AND (EXCEPT AS SET FORTH IN SECTION
         7(a)) INDEMNIFICATION.

         (b) EI warrants that:

                  (i) Any services performed by EI pursuant to this Agreement
         will, be performed in a professional manner; and

                  (ii) The Expedia User Management Tools do not and will not
         infringe any intellectual property rights owned by any other person or
         entity including, but not limited to, any copyright, patent, trademark
         or trade secret to the extent that COMPANY will be required to refrain
         from using such tools (and EI will not be able to provide substitute
         technology which reasonably provides the same or similar functionality)
         with the overall result that COMPANY will not be able to reasonably
         perform the Services as intended herein; and

                  (iii) TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EI
         AND ITS SUPPLIERS DISCLAIM ALL OTHER WARRANTIES AND CONDITIONS,
         EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT TO THE SOFTWARE
         AND SERVICES PROVIDED PURSUANT TO THIS AGREEMENT, INCLUDING, BUT NOT
         LIMITED TO, THE IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITY,
         FITNESS FOR A PARTICULAR PURPOSE, AND (EXCEPT AS SET FORTH IN SECTION
         7(d)) INDEMNIFICATION.

5. Personnel

         (a) COMPANY personnel assigned to Expedia shall be employees of COMPANY
and not employees of EI and shall remain under the direction and control of
COMPANY. These COMPANY personnel shall receive such salaries, compensation and
benefits as COMPANY shall determine. COMPANY agrees to be responsible for all of
its federal and state taxes, withholding, social security, insurance and other
benefits, and all salaries, benefits and other costs of such COMPANY personnel.

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         (b) Notwithstanding the foregoing, COMPANY personnel assigned to
Expedia shall adhere to EI quality control standards as set forth in Exhibit C.

         (c) EI shall have the option to participate in any decisions regarding
any assignment of COMPANY personnel to Expedia. COMPANY acknowledges EI' right
to require immediate removal and prompt replacement from the Expedia team, any
COMPANY employee, or agent performing COMPANY'S obligations under this Agreement
who engages in any conduct prohibited by law or inconsistent with EI policy as
set forth in Exhibit E, so long as such removal and replacement is not
discriminatory or in violation of law.

6. Non-Competition and Non-Solicitation.

         (a) COMPANY personnel shall not target or solicit Expedia customers for
any other COMPANY supported business or any additional travel business beyond
provision of the Services governed by this Agreement, nor shall COMPANY use
information gained in the provision of the Services to compete with Expedia in
providing travel services.

         (b) Notwithstanding the preceding section 6(a), COMPANY shall not be
prohibited from providing services to Expedia customers who contact COMPANY
independently (other than in conjunction with Expedia), or whose names appear on
mailing lists developed independently of Expedia or who were customers of
COMPANY prior to the Effective Date.

         (c) EI shall not solicit COMPANY personnel assigned to Expedia to work
for EI without prior written consent of COMPANY.

7. Indemnification.

          (a) COMPANY Indemnification. COMPANY agrees to indemnify, defend, and
hold EI harmless from and against any and all claims, actions, demands, and
costs, including reasonable attorneys' fees and expenses arising out of or in
connection with third party claims related to the COMPANY Intellectual Property,
and/or as a result of the performance of the Services provided under this
Agreement by COMPANY or its employees, independent contractors or subcontractors
and agents ("COMPANY Indemnified Claims"). Acts for which COMPANY shall
indemnify EI include, but shall not be limited to, representations or
obligations undertaken on behalf of EI concerning the Services to customers
which exceed the scope of the Services as set forth in this Agreement; any act
or omission in violation of any applicable government statutes, laws, rules and
regulations or industry rules and regulations. In addition, COMPANY agrees to
defend EI against, and pay the amount of any adverse final judgment or
settlement to which COMPANY consents resulting from, any third party claim(s)
("Indemnified IP Claims") that the COMPANY Intellectual Property and/or
COMPANY'S provision of any services pursuant to this Agreement, infringes any
third party patent, copyright, trademark or trade secret enforceable under the
laws of the United States; provided that COMPANY is notified promptly in writing
of the Indemnified IP Claim and has sole control over its defense and
settlement, and EI provides reasonable assistance in the defense and/or
settlement of such claim. EI reserves the right to control the defense of any
COMPANY Indemnified Claim and to conduct all proceedings or negotiations in
connection therewith, and if it so undertakes, all other proceedings or
negotiations to settle or defend any such COMPANY Indemnified Claim shall be at
EI' expense, provided that (i) COMPANY shall

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have the right to approve of any settlement of any such COMPANY Indemnified
Claim; such approval shall not be unreasonably withheld, and (ii) EI shall he
responsible for payment of all attorneys' fees incurred by EI after it has
exercised its right to control the defense. COMPANY shall pay any and all
expenses and other reasonable costs incurred by EI arising in connection with
its obligations under this Section 7(a) promptly upon demand.

         (b) EI General Indemnification. EI agrees to indemnify, defend and hold
COMPANY harmless from and against any and all claims, actions, demands,
liabilities, and costs, including reasonable attorneys' fees and expenses,
arising out of or in connection with third party claims as a result of (i) the
business of Expedia unless arising out of or in connection with circumstances
for which COMPANY is indemnifying EI pursuant to Section 7(a) above; and (ii)
any injuries to the person or property of any Expedia customer while traveling
on an Expedia itinerary unless arising out of or in connection with the
negligence of COMPANY ("EI Indemnified Claim"). COMPANY reserves the right to
control the defense of any EI Indemnified Claim and to conduct all proceedings
or negotiations in connection therewith, and, if it so undertakes, all other
proceedings or negotiations to settle or defend any such EI Indemnified Claim
shall be at COMPANY'S expense, provided that (i) EI shall have the right to
approve of any settlement of any such EI Indemnified Claim, such approval shall
not be unreasonably withheld, and (ii) COMPANY shall be responsible for payment
of all attorneys' fees incurred by COMPANY after it has exercised its right to
control the defense. EI shall pay any and all expenses and other costs incurred
by COMPANY arising in connection with its obligations under this Section 7(b)
promptly upon demand.

8. Term and Default.

         (a) This Agreement shall commence as of the Effective Date, and shall
continue in force for a period of three (3) years (the "Term"), unless earlier
terminated by EI as provided in this Agreement or Exhibits hereto.

         (b) For Breach. In the event that either party materially breaches any
provision of this Agreement, the non-breaching party will give the party in
default written notice specifying the nature of the breach ("Notice of
Default"). In the event that the defaulting party fails to cure such breach
within thirty (30) days after receipt of the Notice of Default, then the
non-breaching party may terminate this Agreement immediately upon the expiration
of the thirty (30) day notice period.

         (c) Uncurable Breach. In the event either party causes a material
breach of the provisions of Sections 1(1), 3(b), 6(a), or 10, such breach will
justify termination for cause, and the non-breaching party may terminate this
Agreement immediately with no further obligations under this Agreement.

         (d) For Convenience. After the sixteen (16) months of this Agreement
have elapsed, EI shall have the right to terminate this Agreement for
convenience at any time upon sixty (60) days prior written notice to COMPANY
(the "Notice Period"). In the event of such termination, any amounts unpaid for
Services and/or other amounts relating to the period prior to the expiration of
the Notice Period, remain payable under the terms of this Agreement and
obligations of both parties shall cease to accrue after the expiration of the
Notice Period.

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         (e) Other Remedies. All remedies set forth in this Section 8 shall be
in addition to and not in lieu of all other remedies available under this
Agreement, at law or in equity.

         (f) Survival. Sections 7, 8(f), 8(g), 10, 11, 14 and 15 of this
Agreement shall survive expiration or termination for any reason.

         (g) Transition. Upon the expiration or earlier termination of this
Agreement, COMPANY shall cooperate with EI to assist in the orderly transition
of Services to EI, or as EI may direct, in a professional manner, with no
disruption to the Services.

9. Default in Performance and Remedies. During the term of this Agreement:

         (a) COMPANY acknowledges and agrees that if the Monthly SPM drops below
seventy-five (75), the Minimum Commitment Volume (defined in Exhibit D) shall no
longer apply. The parties agree that in the event that the Minimum Commitment
Volume no longer applies due to a drop in the Monthly SPM, the Minimum
Commitment Volume may only be re-establish following the completion of a
subsequent calendar month in which COMPANY has maintained the Monthly SPM at or
above seventy (75).

         (b) Additionally, in the event that COMPANY cannot meet the Monthly SPM
set forth in Exhibit C any three (3) months during a rolling twelve (12) month
period, EI shall have the right to terminate this Agreement for cause, with no
further obligation to COMPANY under this Agreement.

         (c) All remedies set forth in this section shall be in addition to and
not in lieu of any other remedies available to EI under this Agreement at law or
in equity.

10. Confidentiality and Publicity.

         (a) EI and COMPANY agree that the terms of the Non-Disclosure Agreement
executed by the parties, dated and attached hereto as Exhibit I shall be deemed
incorporated herein, and further, that all terms and conditions of this
Agreement shall be deemed Confidential Information as defined in such
Non-Disclosure Agreement.

         (b) The parties acknowledge that monetary damages may not be a
sufficient remedy for unauthorized disclosure or use of Confidential Information
and that the parties may seek, without waiving any other rights or remedies,
such injunctive or equitable relief as may be deemed proper by a court of
competent jurisdiction.

         (c) COMPANY shall not issue any press release or advertising concerning
COMPANY'S relationship with EI and the Services hereunder, without EI' written
pre-approval.

11. Notices and Requests. All notices, authorizations, and requests in
connection with this Agreement shall be deemed given on the day they are (i)
deposited in the mail, postage prepaid, certified or registered, return receipt
requested; or (ii) sent by air courier, charges prepaid, with a confirming
telefax; or (iii) transmitted, if transmitted by facsimile, and addressed as
follows:

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Notices to COMPANY:

           PEOPLESUPPORT, INC.                      With a copy to:
           1100 Glendon Avenue
           14(th) Floor                             PEOPLESUPPORT, INC.
           Los Angeles, CA 90024                    555 Washington Avenue
                                                    St. Louis, MO 63101

           ATTN: Corporate Counsel

           Phone: (310) 824-6056                    ATTN: Joe Jaworski
           Fax: (310) 824-6355                      Vice President of Operations
                                                    Phone: (314) 436-6000
                                                    Fax: (314) 436-0277

 Notices to EI:

           EXPEDIA, INC.
           13810 SE Eastgate Way, Suite 400
           Bellevue, WA 98005 U.S.A.
           ATTN: Director of Customer Service
           Phone: (425) 564-7200
           Fax:   (425) 564-7242

         With a copy to: Senior Vice President of Operations

         With a copy to: General Counsel

or to such other address as the party to receive the notice or request so
designates by written notice to the other.

12. Audits and Onsite Visits. COMPANY agrees to maintain accurate and adequate
books and records related to the Services for the following period of time: (i)
for any applicable statute of limitations; (ii) for any compulsory extension or
tolling of any applicable statute of limitations; and (iii) for any reasonable
voluntary extension by EI of any statute of limitations under circumstances in
which the governmental entity could otherwise compel an extension; provided
however, that in no case will such period be less than five (5) years. EI may
audit the books and records of COMPANY relating directly to the provision of
COMPANY's performance of the Services under this Agreement and may consult with
COMPANY's accountants as is reasonable to verify COMPANY's compliance with the
terms of this Agreement. Any such audit shall be performed by an independent
auditor and shall be paid for by EI unless material discrepancies are disclosed.
"Material" shall mean a discrepancy of one percent (1%) or higher between
amounts billed to EI and COMPANY's records. If material discrepancies are
disclosed, COMPANY agrees to reimburse EI for the reasonable costs associated
with the audit. COMPANY agrees to promptly correct any deficiencies detected in
the audit and shall promptly refund or deduct from amounts payable, not to
exceed total

                                      -12-
<PAGE>
payments outstanding at the time of the refund, any overpayments disclosed by
such an audit, except for specific past instances of non-monetary noncompliance
not capable of correction due to the passage of time. In the event that COMPANY
fails to refund any overpayment disclosed by the audit within thirty (30) days
from the date of the audit report, EI may, at its election, set-off any such
overpayment against any money subsequently due by EI to COMPANY. In the event
the discrepancy indicates that EI has been undercharged, COMPANY may add the
additional charges to a subsequent invoice, and EI will pay the invoice in
accordance with the provisions set forth in this Agreement. Any audit will be
conducted during COMPANY's normal business hours in such a manner as not to
unreasonably interfere with COMPANY's normal business activities. At such times,
EI and its agents shall be entitled to enter all locations of COMPANY necessary
to provide or otherwise to support or to account for the Services, to conduct
the foregoing audits, and to examine and make copies of all books and records
regarding any or all information which EI is permitted to audit hereunder.

 13. Taxes

         (a) The amounts to be paid by EI to COMPANY herein do not include any
foreign, U.S. federal, state, local, municipal or other governmental taxes,
duties, levies, fees, excises or tariffs, arising as a result of or in
connection with the transactions contemplated under this Agreement including,
without limitation, (i) any state or local sales or use taxes or any value added
tax or business transfer tax now or hereafter imposed on the provision of goods
and services to EI by COMPANY under this Agreement, (ii) taxes imposed or based
on or with respect to or measured by any net or gross income or receipts of
COMPANY, (iii) any franchise taxes, taxes on doing business, gross receipts
taxes or capital stock taxes (including any minimum taxes and taxes measured by
any item of tax preference), (iv) any taxes imposed or assessed after the date
upon which this Agreement is terminated, (v) taxes based upon or imposed with
reference to COMPANY'S real and/or personal property ownership and (vi) any
taxes similar to or in the nature of those taxes described in (i), (ii), (iii),
(iv) or (v) above, now or hereafter imposed on COMPANY (all such amounts,
together with any penalties, interest or any additions thereto, collectively
"Taxes"). EI is not liable for any Taxes incurred in connection with or related
to the sale of goods and services under this Agreement, and all such Taxes shall
be the financial responsibility of COMPANY, provided that EI shall pay to
COMPANY Collected Taxes as indicated below. COMPANY agrees to indemnify, defend
and hold EI harmless from any Taxes (other than Collected Taxes) or claims,
causes of action, costs (including, without limitation, reasonable attorneys'
fees) and any other liabilities of any nature whatsoever related to such Taxes.

         (b) Any sales or use taxes described above that (i) are owed by EI
solely as a result of entering into this Agreement and the payment of the fees
hereunder, (ii) are required to be collected from EI by COMPANY under applicable
law, and (iii) are based solely upon the amounts payable under this Agreement
(such taxes the "Collected Taxes"), shall be stated separately as applicable on
COMPANY's invoices and shall be remitted by EI to COMPANY, whereupon COMPANY
shall remit to EI official tax receipts indicating that such Collected Taxes
have been collected by COMPANY. EI may provide to COMPANY an exemption
certificate (including without limitation a resale certificate) in which case
COMPANY shall not collect the taxes covered by such certificate. COMPANY agrees
to take such steps as are requested by EI to minimize such Collected Taxes in
accordance with all relevant laws and to cooperate with and assist EI, at EI's
request, in challenging the validity of any Collected Taxes

                                      -13-
<PAGE>
or taxes otherwise paid by EI. COMPANY shall indemnify and hold EI harmless from
any Collected Taxes, penalties, interest, or additions to tax arising from
amounts paid by EI to COMPANY under this Agreement, that are asserted or
assessed against EI to the extent such amounts relate to amounts that are paid
to or collected by COMPANY from EI under this section. If any taxing authority
refunds any tax to COMPANY which EI originally paid to COMPANY, or COMPANY
otherwise becomes aware that any tax was incorrectly and/or erroneously
collected from EI, or COMPANY otherwise receives an economic benefit (such as an
audit offset) as the result of incorrectly and/or erroneously receiving
Collected Taxes from EI, then COMPANY shall promptly remit to EI an amount equal
to such refund, incorrect collection or tax benefit as the case may be plus any
interest thereon.

         (c) If taxes are required to be withheld on any amounts otherwise to be
paid by EI to COMPANY, EI will deduct such taxes from the amount otherwise owed
and pay them to the appropriate taxing authority. At COMPANY'S written request
and expense, EI will use reasonable efforts to cooperate with and assist COMPANY
in obtaining tax certificates or other appropriate documentation evidencing such
payment, provided, however, that the responsibility for such documentation shall
remain with COMPANY.

         (d) This tax section shall govern the treatment of all taxes arising as
a result of or in connection with this Agreement notwithstanding any other
section of this Agreement.

14. Limitation Of Liability. EXCEPT WITH RESPECT TO INDEMNIFICATION OBLIGATIONS
UNDER SECTION 7 AND ANY BREACH OF SECTION 10, IN NO EVENT SHALL EITHER PARTY BE
LIABLE TO THE OTHER PARTY OR ANY OTHER PERSON OR ENTITY IN CONNECTION WITH THIS
AGREEMENT FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, OR SPECIAL DAMAGES
WHATSOEVER, INCLUDING WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS OR
REVENUE, BUSINESS INTERRUPTION, LOSS OF OR UNAUTHORIZED ACCESS TO INFORMATION,
AND THE LIKE, HOWEVER CAUSED, WHETHER FOR BREACH OF CONTRACT, NEGLIGENCE OR
UNDER ANY OTHER LEGAL THEORY, WHETHER FORESEEABLE OR NOT AND WHETHER OR NOT THE
OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND
NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. IN NO
EVENT SHALL EI BE LIABLE TO COMPANY FOR AN AMOUNT IN EXCESS OF THE TOTAL DOLLAR
AMOUNT ACTUALLY PAID BY EI TO COMPANY FROM PURSUANT TO SECTION 2 HEREOF.

15. General.

          (a) This Agreement shall be construed and controlled by the laws of
the State of Washington. In the event that COMPANY brings a legal action against
EI, EI consents to jurisdiction and venue in the state and federal courts
sitting in the State of California. In the event that EI brings a legal action
against COMPANY, COMPANY consents to jurisdiction and venue in the state and
federal courts sitting in the State of Washington. Process may be served on
either party by US Mail, postage prepaid, certified or registered, return
receipt requested, or by such other method as is authorized by law.

                                      -14-
<PAGE>
         (b) Neither this Agreement, nor any terms or conditions contained
herein, shall be construed as creating a partnership, joint venture, agency
relationship or franchise. COMPANY is an independent contractor for EI. COMPANY
will employ its own employees in order to perform and satisfy its obligations
under this Agreement. Nothing in this Agreement shall be construed as creating
an employer-employee relationship, as a guarantee of future employment. COMPANY
further agrees to be solely responsible for, and to indemnify and hold EI
harmless against any and all federal and state taxes, tax withholding, social
security, unemployment insurance, and other taxes and benefits resulting from
COMPANY'S relationship with its employees and independent contractors.

         (c) This Agreement, including all Exhibits attached hereto, constitutes
the entire agreement between the parties with respect to the subject matter
hereof and supersedes all prior and contemporaneous agreements or communications
with respect to the subject matter hereof, with the exception of the
Non-Disclosure Agreement between the parties referenced herein. This Agreement
shall not be modified except by a written agreement dated subsequent to the date
of this Agreement and signed on behalf of COMPANY and EI by their respective
duly authorized representatives.

         (d) No waiver of any breach of any provision of this Agreement shall
constitute a waiver of any prior, concurrent, or subsequent breach of the same
or any other provisions hereof, and no waiver shall be effective unless made in
writing and signed by an authorized representative of the waiving party.

         (e) If any provision of this Agreement shall be held by a court of
competent jurisdiction to be illegal, invalid, or unenforceable, the remaining
provisions shall remain in full force and effect.

         (f) The rights and obligations hereunder shall be binding upon and
inure to the benefit of the successors and assigns of the parties hereto,
provided any rights or obligations hereunder shall not be assigned by COMPANY
without the prior written consent of EI. Notwithstanding the foregoing, if
COMPANY is reorganized into another form of entity with the effect that the new
entity owns substantially all of the current assets and business of COMPANY and
that the new entity is controlled by the same person(s) as currently control
COMPANY, this Agreement may be assigned to such new entity without prior written
consent of EI.

         (g) In any suit or action to enforce any right or remedy under this
Agreement or to interpret any provision of this Agreement, the prevailing party
will be entitled to recover its costs, including reasonable attorneys' fees.

         (h) The section headings herein are for the convenience of the parties
and shall not be deemed to supersede or modify any provisions.

         (i) If either party is unable to perform under this Agreement due to
circumstances or causes beyond its control, and which could not by reasonable
diligence have been avoided, such party shall have the option, without
liability, of suspending performance of its obligations under this Agreement for
the duration of such contingency upon written notice to the other party.
However, either party may terminate this Agreement upon written notice to the
other party in

                                      -15-
<PAGE>
the event that such other party has suspended performance of its obligations
under this Agreement for more than thirty (30) days.

         (k) This Agreement does not constitute an offer by EI and shall not be
effective until signed by both parties.

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

EXPEDIA, INC.                                       PEOPLESUPPORT, INC.
10834 SE Eastgate Way,                              1100 Glendon Avenue,
Suite 400                                           14(th) Floor
Floor Bellevue, WA 98005                            Los Angeles, CA 90024

/s/ GREGORY STANGER                                 /s/ LANCE ROSENZWEIG
-------------------------                           -----------------------
By                                                  By

Gregory Stanger                                     Lance Rosenzweig
-------------------------                           -----------------------
Name (print)                                        Name (print)

Sr. Vice President & CFO                            CEO & Chairman
-------------------------                           -----------------------
Title                                               Title

                                      -16-<PAGE>

                                                                    EXHIBIT 10.5

                             MEMORANDUM OF AGREEMENT

This Memorandum of Agreement (the "MOA") is made and executed on this 15th day
of December 2003 in Makati City, Metro Manila, by and between;

AYALA LAND, INC. a corporation duly organized and existing under and by virtue
of the laws of the Republic of the Philippines, with offices at (for the
purposes of this MOA) the 28th Floor, Tower One and Exchange Plaza, Ayala
Triangle, Ayala Avenue, Makati City, Metro Manila, represented herein by its
Attorneys-in-Fact Francisco H. Licuanan III and Ma. Victoria E. Anonuevo
(hereinafter referred to as "ALI")

                                       and

PEOPLESUPPORT (PHILIPPINES) INC., a corporation duly organized and existing
under and by virtue of the laws of the Republic of the Philippines, with offices
at 12th-14th Floors, Philamlife Tower, 8767 Paseo de Roxas, Makati City, Metro
Manila, represented herein by its President, Rainerio M. Borja (hereinafter
referred to as "PEOPLESUPPORT");

(ALI and PEOPLESUPPORT are hereinafter collectively referred to as the
"PARTIES".)

                                    RECITALS

ALI will be developing and constructing a five (5)-storey office building (the
"BUILDING") along Amorsolo Street, Legaspi Village, Makati City, Metro Manila,
specifically on the site delineated in ANNEX A hereof (the "SITE"). The Building
will be primarily intended for the operation of a call center and/or outsource
services business and will be planned to have approximately 15,805.5 square
meters of leasable office space, approximately 1,270 square meters of retail
space located at the ground floor of the Building, all with appurtenant parking
slots, and will be in accordance with the initial plans and specifications
agreed upon by the Parties and provided in ANNEX B, subject to such changes as
may be mutually agreed upon by the Parties.

PEOPLESUPPORT has offered to lease 15,102.50 square meters of leasable office
space (the "OFFICE SPACE") from ALI, together with 147 parking slots (the
"OFFICE PARKING SLOTS"), and ALI is willing to lease the Office Space and Office
Parking Slots to PEOPLESUPPORT, for the purpose of operating a call center
and/or to provide outsource services thereon 24 hours a day and 7 days a week
and for such other general office use as PEOPLESUPPORT may deem necessary.

For the purpose of providing for the commitments and undertakings of ALI and
PEOPLESUPPORT in connection with the development of the Building and prior to
the commencement of the lease, the Parties desire to execute this Memorandum of
Agreement to govern their relationship.

<PAGE>

                                                                          Page 2
                                     Memorandum of Agreement-PeopleSupport Lease

NOW THEREFORE, for and in consideration of the foregoing premises and of the
terms and conditions hereinafter set forth, the Parties hereby agree as follows:

                                    SECTION 1
                          DEVELOPMENT OF THE BUILDING

1.1      PLANS AND SPECIFICATIONS. ALI hereby undertakes to exert its best
         efforts to construct the Building in accordance with the plans and
         specifications provided in ANNEX B, and any amendments or revisions to
         the same as may be agreed upon by the Parties. PEOPLESUPPORT hereby
         acknowledges the acceptability of the specifications under ANNEX B for
         the operation of a call center and/or outsource services business to
         cater to the requirements of PEOPLESUPPORT. It is agreed, however, that
         any change in ANNEX B shall require the prior written consent of
         PEOPLESUPPORT; provided that, PEOPLESUPPORT undertakes not to withhold
         its consent to any such change in the event that such change in plans
         and specifications are necessary to conform to or address: (a) site
         conditions which could not have been reasonably determined at the time
         of preparations of the plans and specifications; (b) requirements of
         law and the applicable regulation or change in law; (c) restrictions
         and regulations promulgated by the Makati Commercial Estate
         Association, Inc. ("MACEA"); or (d) change in PEOPLESUPPORT's technical
         and building requirements; provided, further, that with respect to the
         foregoing clauses (a), (b), and (c), such change in the plans and
         specifications are not inconsistent with, or do not materially alter,
         the project brief and building design criteria agreed upon by the
         Parties. Any change in plans and specifications as agreed upon by the
         Parties shall form part of this MOA as an amendment to ANNEX B hereof.

         The Parties shall agree upon, finalize and sign off on the project
         brief, user's requirements and building design criteria as provided in
         Annex B not later than December 31, 2003. The Parties shall agree upon,
         finalize and sign off on the design development plans and
         specifications not later than February 15, 2004; provided that, such
         initial design development plans and specifications shall be submitted
         to PEOPLESUPPORT for approval not later than February 1, 2004.

         In order to ensure that the Building is built to specifications, the
         Parties shall meet periodically to assess the progress of the
         construction of the Building based on the milestones to be mutually
         agreed upon by the Parties. It is understood by the Parties that the
         milestones will be determined and agreed upon at a later time, which
         milestones, when agreed upon, shall be incorporated into and form part
         of this MOA. In addition, ALI agrees to meet with PEOPLESUPPORT at any
         reasonable time when so requested by the latter, for the purpose of
         assessing the progress of construction of the Building.

<PAGE>

                                                                          Page 3
                                     Memorandum of Agreement-PeopleSupport Lease

1.2      CONSTRUCTION AND DELIVERY. ALI shall exert its best efforts to commence
         construction of the Building not later than March 31, 2004. ALI shall
         also exert its best efforts to complete the construction of the
         Building by April 15, 2005 for the purpose of turning over possession
         of the entire Office Space to PEOPLESUPPORT not later than April 15,
         2005 to allow PEOPLESUPPORT to fit-out the Office Space; provided that,
         ALI shall exert its best efforts to turn over possession of that
         portion of the Office Space in the third floor of the Building to
         PEOPLESUPPORT not later than February 1, 2005, and to turn over
         possession of that portion of the Office Space on the ground, fourth
         and fifth floors of the Building not later than March 1, 2005 in order
         to allow PEOPLESUPPORT to start fitting-out the Office Space on said
         floors; ALI shall endeavor to complete and turn over the common areas
         of the Building simultaneous with, and to cause all life-support
         systems of the Building (including air-conditioning, elevator and
         elevator shaft) to be operational and in place not later than, the
         completion of the Building. It is agreed by the Parties that the
         effective turn over of the Office Space or any portion thereof shall be
         conditioned on the same being ready for fit-out by PEOPLESUPPORT as may
         be agreed upon by the Parties.

         The best efforts delivery by ALI of the Office Space, whether partially
         or entirely, as indicated above, shall, however, be subject to the
         execution by the Parties of a contract of lease, the form of which
         shall be agreed upon by the Parties on or before February 28, 2004, and
         which shall in all aspects be in conformity with the terms agreed to by
         the Parties together with such other changes as negotiated and further
         agreed upon by the Parties (the "CONTRACT OF LEASE") pursuant to
         Section 2.3 hereof. The Contract of Lease as agreed upon by the Parties
         shall likewise form part of this MOA.

         For the purpose of advising PEOPLESUPPORT of the date of completion of
         construction of the Building and/or of informing PEOPLESUPPORT that the
         Office Space (or any portion thereof) is ready for fit-out, ALI shall
         notify PEOPLESUPPORT in writing of the readiness of the Office Space
         (or any portion thereof) for delivery (the "NOTICE OF DELIVERY").

1.3      TENANT FIT-OUT PERIOD. PEOPLESUPPORT shall be entitled to a tenant
         fit-out period of six (6) months for that portion of the Office Space
         located on the third floor which shall be turned over by ALI to
         PEOPLESUPPORT earliest, commencing on the later of: (a) the signing of
         the Contract of Lease by the Parties; or (b) receipt by PEOPLESUPPORT
         of the first Notice of Delivery. PEOPLESUPPORT shall be entitled to a
         tenant fit-out period of five (5) months for the Office Space located
         on the other floors which shall be subsequently turned over by ALI to
         PEOPLESUPPORT commencing upon the receipt by PEOPLESUPPORT of the
         Notice of Delivery for the Office Space on said floors. It is agreed by
         the Parties that PEOPLESUPPORT shall not be liable to pay rent during
         the aforesaid tenant fit-out period; provided, that for the period
         commencing from the turn-over of possession of the portion of the
         Office Space in the third floor of the Building up to the date prior to
         the completion of the Building, PEOPLSUPPORT shall be liable to pay
         common area dues of [Php]58.00 per square meter per month based on the

<PAGE>

                                                                          Page 4
                                     Memorandum of Agreement-PeopleSupport Lease

         aggregate area of the Office Space actually turned over to
         PEOPLESUPPORT as of the relevant month.

         Upon turnover by ALI of the Office Space or any portion thereof, and
         during the tenant fit-out period prior to the completion of the
         Building: (a) ALI shall provide water and electric connection and other
         utility services sufficient to allow PEOPLESUPPORT to fit out that
         portion of the Office Space so turned over, and (b) ALI, its
         contractors and personnel shall be allowed access to the restrooms and
         other areas of the Office Space which have been turned over to
         PEOPLESUPPORT; provided, however, that ALI, its contractors, employees
         and agents shall not interfere with the fit-out of the Office Space
         subject to the further condition that the fit-out by PEOPLESUPPORT is
         in accordance with the approved fit-out plans. During the tenant
         fit-out period, PEOPLESUPPORT shall pay for the costs of electric power
         and water consumed by PEOPLESUPPORT and consumed in the Office Space or
         the portion thereof occupied by or turned over to PEOPLESUPPORT.

         Commencing on the date of completion of the Building and turnover of
         the Office Space for fit-out, until the Lease Commencement Date,
         PEOPLESUPPORT shall be liable to pay: (a) common area dues of
         [Php]68.00 per square meter per month; and (b) air-conditioning charges
         in the amount of [Php]98.00 per square meter per month, both based on
         the area occupied by the Office Space.

         Commencing on the date of completion of the Building and turn-over of
         the Leased Premises, PEOPLESUPPORT shall be responsible for the
         maintenance and cleaning of all the restrooms located in the ground,
         second, third, fourth and fifth floors of the Building, which are
         exclusively dedicated to the use of PEOPLESUPPORT, its employees,
         representatives, agents and guests. For this purpose, PEOPLESUPPORT
         shall require the regular cleaning thereof at least four (4) times for
         every regular eight (8) hour shifts; and shall maintain the finish of
         the walls, normal wear and tear excepted.

         At least thirty (30) days prior to the commencement of the fit-out of
         the Office Space or any portion thereof, PEOPLESUPPORT shall submit to
         ALI the architectural, engineering, conceptual plans and specifications
         for ALI's approval. PEOPLESUPPORT shall not make any alteration,
         addition or improvement within the Office Space, the Office Parking
         Slots, or in any of the common areas, without the prior written consent
         of ALI, and then subject to such reasonable terms and conditions as may
         be imposed by ALI. The review and approval by ALI of the fit-out plans
         and the architectural, engineering, conceptual plans and specifications
         shall not be unreasonably withheld or delayed. ALI shall complete the
         review of the architectural, engineering, conceptual plans and
         specifications within fifteen (15) days from PEOPLESUPPORT's submission
         thereof. The approval by ALI of such plans shall in no event relieve
         PEOPLESUPPORT from the responsibility of obtaining all the necessary
         permits and licenses or from paying the necessary taxes, insurance
         premium or fees as shall be necessary or appropriate in connection
         therewith. PEOPLESUPPORT shall give all the notices required and shall
         comply with all ordinances, rules and regulations issued by

<PAGE>

                                                                          Page 5
                                     Memorandum of Agreement-PeopleSupport Lease

         governmental agencies and public utility companies having jurisdiction
         over the same. For purposes hereof, PEOPLESUPPORT shall cause to be
         submitted to ALI the cash bond as required by Section 1.4 hereof prior
         to the start of the fit-out.

1.4      CONSTRUCTION BOND. Within seven (7) days prior to any construction,
         fit-out or renovation in the Office Space or any portion thereof,
         PEOPLESUPPORT shall cause its Contractor to submit a cash construction
         bond equivalent to one (1) month's rent in effect at the time the
         construction is to be undertaken by PEOPLESUPPORT's Contractor to
         answer and stand as security for the repair or reconstruction of any
         damage caused to the property of ALI or of any tenant or occupant in
         the Building arising out of or in connection with the fault or
         negligence of PEOPLESUPPORT's Contractor, suppliers or workers
         undertaking such construction, fit-out or renovation or the failure of
         PEOPLESUPPORT's Contractor to comply with the Construction Guidelines
         and House Rules, and all other reasonable requirements prescribed by
         ALI prior to the commencement of such construction, fit-out or
         renovation work for the performance of such construction, fit-out or
         renovation work. It is agreed by the Parties that the construction bond
         to be posted shall be proportional to the amount of space actually
         turned over and based on the amount of [Php]6,214,550.00 for the entire
         Office Space. Upon complete turn over of the entire Office Space, the
         value of the construction bond provided by PEOPLESUPPORT's Contractor
         should have been increased so as to amount to [Php]6,214,550.00.

         The construction bond shall be returned to PEOPLESUPPORT's Contractor
         without interest after the completion of the construction, fit-out or
         renovation work, less any construction-related charges, if any, due to
         ALI or any tenant or occupant of the Building, as proper, arising in
         connection with any damage caused by the fault or negligence of
         PEOPLESUPPORT's Contractor, suppliers or workers or its or their breach
         of the Construction Guidelines and House Rules, and all other written
         requirements prescribed by ALI, subject to PEOPLESUPPORT's Contractor's
         compliance with all the conditions specified for the return of the bond
         under the Construction Guidelines and House Rules.

1.5      NAME OF BUILDING. ALI shall grant PEOPLESUPPORT the naming rights to
         the Building; provided that, PEOPLESUPPORT shall inform ALI in writing
         of the name chosen for the Building at least 30 days prior to the use
         thereof by PEOPLESUPPORT; provided, further, that the naming rights
         shall revert to ALI: (1) upon the expiration of the Contract of Lease;
         or (2) in the event that PEOPLESUPPORT pre-terminates the lease for
         more than half of the Office Space, resulting in PEOPLESUPPORT leasing
         less than 7,902.75 square meters of office space. However,
         notwithstanding the loss of naming rights, PEOPLESUPPORT shall be
         entitled to put up signs that identify its offices in the Building,
         subject to compliance with the restrictions in Section 1.6 and the
         provisions of the Contract of Lease.

<PAGE>

                                                                          Page 6
                                     Memorandum of Agreement-PeopleSupport Lease

         During the construction of the Building, PEOPLESUPPORT shall be allowed
         to put up signs or paint the perimeter wall of the construction site
         with signs essentially stating "On this site will soon rise the
         PEOPLESUPPORT CENTER", and other relevant information like web site and
         mail addresses, subject to compliance with the restrictions in Section
         1.6 and such other reasonable requirements as may be imposed by ALI.

1.6      RESTRICTIONS. ALI warrants that, in the construction of the Building,
         it shall comply with all the requirements and restrictions as embodied
         in: (1) the Consolidated and Revised Deed Restrictions for Ayala North,
         Ayala South, Ayala Triangle, Roxas Triangle, Salcedo Village, Legazpi
         Village, Buendia Extension, Apartment Ridge (Ayala Avenue) and
         Apartment Ridge Extension (Makati Avenue), as may be amended from time
         to time; (2) Makati City Zoning Ordinance No. 2000-078, as may be
         amended from time to time; (3) Makati City Comprehensive Land Use Plan,
         as may be amended from time to time; and (4) the National Building Code
         of the Philippines, as the same may be amended from time to time.

         PEOPLESUPPORT warrants that it shall comply with the requirements and
         restrictions, relating to the use and operation of the Leased Premises,
         as embodied in: (1) the Consolidated and Revised Deed Restrictions for
         Ayala North, Ayala South, Ayala Triangle, Roxas Triangle, Salcedo
         Village, Legazpi Village, Buendia Extension, Apartment Ridge (Ayala
         Avenue) and Apartment Ridge Extension (Makati Avenue), as may be
         amended from time to time; (2) Makati City Zoning Ordinance No.
         2000-078, as may be amended from time to time; (3) Makati City
         Comprehensive Land Use Plan, as may be amended from time to time; and
         (4) the National Building Code of the Philippines, as the same may be
         amended from time to time.

                                    SECTION 2
                           LEASE OF THE OFFICE SPACE

2.1      LEASE TERM. The lease shall commence on August 1, 2005, unless another
         date is mutually agreed upon by the Parties, (the "LEASE COMMENCEMENT
         DATE"), and shall terminate on July 31, 2015, unless otherwise extended
         in accordance with Section 2.4 (the "LEASE TERM").

2.2      APPROVALS. Prior to February 1, 2005, ALI shall obtain the approvals
         for the accreditation by the Philippine Economic Zone Authority (PEZA)
         of the Building as an "information technology (IT) building".

2.3      CONTRACT OF LEASE. On or before January 15, 2005, ALI and PEOPLESUPPORT
         shall execute the Contract of Lease which shall include the following
         terms:

<PAGE>

                                                                          Page 7
                                     Memorandum of Agreement-PeopleSupport Lease

         (a)      The Lease Term shall be for a period of ten (10) years,
                  commencing on August 1, 2005, and ending on July 31, 2015,
                  unless otherwise extended by the Parties in accordance with
                  the principles and terms set forth in this MOA.

         (b)      PEOPLESUPPORT shall lease the Office Space, consisting of
                  15,102.50 square meters of leasable office space in the
                  Building, broken down as follows at the following monthly
                  rental rates for the first year of the Lease Term:

<TABLE>
<CAPTION>
                                                           Monthly lease rate
  Location                     Area                         per square meter
-------------------------------------------------------------------------------
<S>                   <C>                                  <C>
Ground Floor          1,157.00 square meters                 [Php] 550.00
 Third Floor          4,648.50 square meters                 [Php] 400.00
Fourth Floor          4,648.50 square meters                 [Php] 400.00
 Fifth Floor          4,648.50 square meters                 [Php] 400.00
</TABLE>

                  In consideration of its lease of the Office Space,
                  PEOPLESUPPORT shall pay a total monthly rental of
                  [Php]6,214,550.00 for the period from the Lease Commencement
                  up to the day prior to the first anniversary of the Lease
                  Commencement Date. The rent shall be liquidated and paid in
                  the manner provided in the Contract of Lease.

         (c)      The rental rate for the succeeding four (4) years shall be
                  increased at the following rates per annum over the
                  then-prevailing monthly rental rate:

<TABLE>
<CAPTION>
                         Period Covered                                 Rate Increase
-------------------------------------------------------------------------------------
                  From                              To
-------------------------------------------------------------------------------------
<S>       <C>                               <C>                         <C>
Year 2    First anniversary of the          Day prior to second                5%
          Lease Commencement Date           anniversary of the
                                            Lease Commencement Date

Year 3    Second anniversary of the         Day prior to third                 5%
          Lease Commencement Date           anniversary of the
                                            Lease Commencement Date

Year 4    Third anniversary of the          Day prior to fourth                9%
          Lease Commencement Date           anniversary of the Lease
                                            Commencement Date

Year 5    Fourth anniversary of the         Day prior to fifth                 9%
          Lease Commencement Date           anniversary of the Lease
                                            Commencement Date
</TABLE>

                  The monthly rent due for the year commencing on the fifth
                  anniversary of the Lease Commencement Date up to the day prior
                  to the sixth anniversary of the Lease Commencement Date shall
                  be computed as follows: (i) in the event that the then
                  prevailing monthly market rental rate (computed per square
                  meter) of office units at the Makati Stock Exchange Building
                  is higher than the then prevailing monthly rental rate
                  (computed per square meter) of the Office Space, the monthly
                  rent at year 6 shall be equal to the lower of: (1) the then

<PAGE>

                                                                          Page 8
                                     Memorandum of Agreement-PeopleSupport Lease

                  prevailing monthly market lease rate of office spaces at the
                  Makati Stock Exchange Building; or (2) the amount which is
                  equal to the then prevailing monthly lease rate for the Office
                  Space plus ten percent (10%) thereof; or (ii) in the event
                  that the then prevailing monthly market rental rate (computed
                  per square meter) of office units at the Makati Stock Exchange
                  Building is lower than the then prevailing monthly rental rate
                  (computed per square meter) of the Office Space, the monthly
                  rent shall be the higher of: (1) the then prevailing monthly
                  market lease rate of office spaces at the Makati Stock
                  Exchange Building; or (2) the amount which is equal to the
                  then prevailing lease rate for the Leased Premises less ten
                  percent (10%) thereof. For this purpose, not later than sixty
                  (60) days prior to the fifth anniversary of the Lease
                  Commencement Date, the Parties shall appoint a mutually
                  acceptable independent property consultant to determine the
                  prevailing market lease rate of office spaces at the Makati
                  Stock Exchange Building.

                  The monthly rental rate for the remainder of the Lease Term
                  shall be increased at the following rates per annum over the
                  then-prevailing monthly rental rate:

<TABLE>
<CAPTION>
                              Period Covered                               Rate Increase
----------------------------------------------------------------------------------------
                  From                                 To
----------------------------------------------------------------------------------------
<S>       <C>                               <C>                            <C>
Year 7    Sixth anniversary of the          Day prior to the seventh             5%
          Lease Commencement Date           anniversary of the Lease
                                            Commencement Date

Year 8    Seventh anniversary of the        Day prior to the eight               5%
          Lease Commencement Date           anniversary of the Lease
                                            Commencement Date

Year 9    Eighth anniversary of the         Day prior to the ninth               9%
          Lease Commencement Date           anniversary of the Lease
                                            Commencement Date

Year 10   Ninth anniversary of the          Expiration of the Lease              9%
          Lease Commencement Date           Term
</TABLE>

         (d)      For the duration of the Lease Term, PEOPLESUPPORT shall be
                  allowed to utilize the ground floor lobby (with an area of
                  approximately 247.5 square meters) and the storage space at
                  the 2nd floor (with an area of approximately 168.91 square
                  meters), of the Building; provided, however, that in the event
                  of pre-termination by PEOPLESUPPORT of the lease of the Office
                  Space on the ground floor of the Building, PEOPLESUPPORT shall
                  no longer be allowed to utilize the ground floor lobby and the
                  storage space. No additional rent shall be chargeable for the
                  use of such space.

         (e)      For the duration of the Lease Term, PEOPLESUPPORT shall lease
                  the Office Parking Slots designated in Annex B (the Office
                  Space and the Office Parking Slots are collectively referred,
                  to as the "LEASED

<PAGE>

                                                                          Page 9
                                     Memorandum of Agreement-PeopleSupport Lease

                  PREMISES"). In consideration of its lease of the Office
                  Parking Slots, PEOPLESUPPORT shall pay a monthly rental of
                  [Php]1,900.00 for each parking slot per month, or an aggregate
                  amount of [Php]279,300.00 per month during the first year of
                  the Lease Term. The monthly rental for the Office Parking
                  Slots shall be paid and liquidated in the same manner as the
                  monthly rental for the Office Space as provided in the
                  Contract of Lease. The monthly rental rate herein stated shall
                  be subject to an annual escalation at the rate of 5%.

         (f)      Beginning on the Lease Commencement Date, and in addition to
                  the payment of rental and other amounts due under the Contract
                  of Lease, PEOPLESUPPORT shall pay to ALI on or before the date
                  specified in the statement of account, the monthly common area
                  charges, which shall be at a monthly rate based on the area of
                  the Office Space. The common area charges for the first year
                  of the Lease Term shall be [Php]68.00 per square meter of the
                  Office Space per month. The rate or the amount of common area
                  charges shall be increased annually at the rate of 9% per
                  annum over the current monthly rate of common area charges.

         (g)      Beginning on Lease Commencement Date, the LESSEE shall pay for
                  the cost of water consumption in the Leased Premises and in
                  the comfort rooms in the Building designated for the exclusive
                  use of PEOPLESUPPORT, its clients, guests, customers or
                  employees (i.e., the comfort rooms in the ground, second,
                  third, fourth and fifth floors) at a monthly rate per square
                  meter of the Leased Premises as provided in the Contract of
                  Lease.

         (h)      PEOPLESUPPORT shall pay and discharge all charges for
                  supplying electrical power to the Leased Premises at the same
                  rates charged by the Manila Electric Company to its
                  concessionaires (as may be adjusted from time to time) based
                  on the number of kilowatts consumed by the Leased Premises as
                  evidenced by the sub-meter separately provided by
                  PEOPLESUPPORT for electric consumption within the Leased
                  Premises. Billings for electric consumption shall be sent to
                  PEOPLESUPPORT on a monthly basis.

         (i)      PEOPLESUPPORT shall reimburse ALI for the actual out-of-pocket
                  cost of providing additional pest control services for the
                  Leased Premises when such services may be warranted in ALI's
                  opinion; provided, that the need for such additional pest
                  control services is not attributable to the acts or omissions
                  of persons other than PEOPLESUPPORT, its employees, agents,
                  representatives, customers, clients and guests

         (j)      PEOPLESUPPORT shall pay and discharge all charges for
                  supplying emergency power to the Leased Premises, the need for
                  which arises due to occurrences beyond ALI's control, at a
                  reasonable rate to be determined by ALI. Such rate may be
                  adjusted as and when the cost of diesel fuel increases.
                  Billings and all supporting records of

<PAGE>

                                                                         Page 10
                                     Memorandum of Agreement-PeopleSupport Lease

                  emergency power consumption shall be sent to PEOPLESUPPORT on
                  a monthly basis.

         (k)      PEOPLESUPPORT shall pay and discharge all deposits and charges
                  for telephone, facsimile, telecommunications and other public
                  services or utilities consumed or supplied to the Leased
                  Premises; provided that with respect to the public utilities
                  and services covered by the previous sections, the liability
                  of PEOPLESUPPORT with respect to the supply and consumption of
                  these services shall be respectively governed by these
                  sections or by the Contract of Lease.

         (l)      Beginning on Lease Commencement Date, PEOPLESUPPORT shall be
                  responsible for the maintenance and cleaning of all the
                  restrooms located in the ground, second, third, fourth, and
                  fifth floors of the Building, which are exclusively dedicated
                  to the use of PEOPLESUPPORT, its employees, representatives,
                  agents and guests. For this purpose, PEOPLESUPPORT shall
                  require the regular cleaning thereof at least four (4) times
                  for every regular eight (8) hour shifts; and shall maintain
                  the finish of the walls, normal wear and tear excepted.

         (m)      On or before the due dates specified in this MOA and in the
                  Contract of Lease, PEOPLESUPPORT shall pay advance rent in the
                  amount of [Php]18,643,650.00 for the Office Space and
                  [Php]837,900.00 for the Office Parking Slots for the first
                  year of the Lease Term. The amount of advance rental shall at
                  all times be maintained at an amount equivalent to three (3)
                  months' rent at the prevailing rates, and shall be increased
                  correspondingly as the rental rates increase. This payment
                  shall be applied against the rent due for the last three (3)
                  months of the Lease Term.

         (n)      On or before the due dates specified in this MOA and in the
                  Contract of Lease, PEOPLESUPPORT shall provide ALI with a
                  security deposit to be paid in cash or in check in an amount
                  equivalent to three (3) months' rental for the Leased Premises
                  to answer and stand as security for the proper and due
                  performance of all of PEOPLESUPPORT's obligations under the
                  Contract of Lease (the "SECURITY DEPOSIT"). The Security
                  Deposit shall be in the amount of [Php]18,643,650.00 for the
                  Office Space and [Php]837,900.00 for the Office Parking Slots
                  for the duration of the lease. The Security Deposit shall
                  remain fixed and shall not be subject to escalation for the
                  duration of the Lease Term.

                  The Security Deposit shall be returned to PEOPLESUPPORT,
                  without interest, within two (2) months from the date
                  PEOPLESUPPORT has completely and satisfactorily vacated and
                  delivered the Leased Premises to ALI, less whatever amounts
                  PEOPLESUPPORT may owe ALI or which ALI may apply against the
                  Security Deposit as provided under the Contract of Lease. ALI
                  shall, notwithstanding the return of the Leased Premises to
                  ALI by PEOPLESUPPORT, have the right to withhold any portion
                  of the Security Deposit until ALI shall have

<PAGE>

                                                                         Page 11
                                     Memorandum of Agreement-PeopleSupport Lease

                  received statements of account from utility companies
                  supplying telephone, water, electric power or public utility
                  services to the Leased Premises, covering the period ending on
                  the date PEOPLESUPPORT shall have completely vacated and
                  delivered the Leased Premises to ALI. The amount withheld
                  shall answer for the payment of such statements of account and
                  the balance thereof remaining with ALI, after such payment,
                  shall be returned to PEOPLESUPPORT without interest. Likewise,
                  should PEOPLESUPPORT have any other obligation which remains
                  due and unpaid under any other contract with ALI, ALI shall
                  have the right to apply the amount of these unpaid obligations
                  against the Security Deposit in settlement thereto upon the
                  termination of the lease.

                  The Security Deposit shall be forfeited in favor of ALI upon
                  the occurrence of the events enumerated in the Contract of
                  Lease for the forfeiture of the additional security.

         (o)      Beginning on the Lease Commencement Date, and in addition to
                  the payment of rental and other amounts due hereunder,
                  PEOPLESUPPORT shall pay to ALI the cost of providing
                  air-conditioning for the Office Space. The air-conditioning
                  charges shall be at a monthly rate per square meter of the
                  leasable area occupied by the Office Space. For the first year
                  of the lease, PEOPLESUPPORT shall be liable to pay
                  air-conditioning charges in the amount of [Php]98.00 per
                  square meter of the Office Space per month. The rate or the
                  amount of air-conditioning charges shall be increased
                  periodically by either (i) an increase in utility/service
                  charges imposed by the Manila Electric Company or any
                  successor company or service agency responsible for providing
                  or supplying the utility or service to the Leased Premises, or
                  (ii) annually at the rate of 5% per annum over the current
                  monthly rate of air-conditioning charges, whichever amount is
                  higher. It is agreed that ALI shall provide PEOPLESUPPORT with
                  the option to shut off the air-conditioning per floor
                  depending on the demands of PEOPLESUPPORT; provided that
                  PEOPLESUPPORT shall give prior notice to ALI of the need to
                  shut off the airconditioning.

                  The Office Space shall be supplied with air-conditioning 24
                  hours a day, seven (7) days a week with a maximum
                  air-conditioning system capacity of 940 tons of refrigeration;
                  provided that, in compliance with PEOPLESUPPORT's
                  requirements, the air-conditioning system shall be running at
                  79% capacity, which is equivalent to 743 tons of refrigeration
                  ("TR"), from 8 a.m. of any day to 6 p.m. of the same day.

         (p)      PEOPLESUPPORT may sub-lease all or any part of the Leased
                  Premises; provided that, prior to entering into any sub-lease
                  arrangement, PEOPLESUPPORT shall obtain ALI's prior written
                  consent, which consent shall not be unreasonably withheld or
                  delayed, for such sub-lessee and for the terms and conditions
                  for such sub-lease; provided further that, the contract of
                  sub-lease shall be subject to all

<PAGE>

                                                                         Page 12
                                     Memorandum of Agreement-PeopleSupport Lease

                  the terms and conditions of the Contract of Lease and
                  PEOPLESUPPORT shall remain responsible for complying with and
                  ensuring the sub-lessee's compliance with the terms of the
                  Contract of Lease. In no case shall the use or occupancy of
                  the Leased Premises or any area covered by the sub-lease
                  contract be contrary to the use and occupancy of the Leased
                  Premises as required by the Contract of Lease, nor shall any
                  undertaking of any sub-lessee under a sub-lease contract
                  impair or be detrimental to the exercise by ALI of any of its
                  rights under the Contract of Lease. ALI reserves the right to
                  determine the need to execute, and once such determination has
                  been made, PEOPLESUPPORT shall so ensure the execution of, a
                  tripartite agreement among ALI, PEOPLESUPPORT and the
                  sub-lessee under which the sub-lessee shall have direct rental
                  obligations to ALI. ALI shall also determine the direct rental
                  to be paid to ALI by a sub-lessee and shall have the option to
                  require that the rent due from the sub-lessee be based on the
                  same rates applied to PEOPLESUPPORT or be determined on the
                  same basis specified hereunder. PEOPLESUPPORT undertakes to
                  inform its sub-lessees of all terms and conditions of the
                  Contract of Lease, including the necessity of a tripartite
                  agreement if so required by ALI. All sub-lease contracts shall
                  contain a reference to and shall not be inconsistent with the
                  Contract of Lease. Moreover, PEOPLESUPPORT shall stipulate in
                  all of its sub-lease contracts the right of ALI to require
                  PEOPLESUPPORT to cancel the sub-lease and/or tripartite
                  agreement without need of any court action in the event of
                  breach of the terms and conditions of the sub-lease and
                  Contract of Lease.

                  PEOPLESUPPORT shall have the right to sub-lease any portion of
                  the Leased Premises to any of its affiliate companies without
                  need for obtaining ALI's written consent; provided that, prior
                  written notice is given to ALI of such sub-lease arrangement;
                  provided further that, all other terms and conditions as
                  provided in the immediately preceding paragraph shall apply to
                  the sub-lease to PEOPLESUPPORT's affiliate company.

                  In addition, PEOPLESUPPORT shall have the right to allow the
                  use, by any affiliate company of PEOPLESUPPORT, of the Leased
                  Premises without need for the Parties to enter into a
                  sub-lease arrangement; provided that, prior written notice is
                  given to ALI of such intent to allow use by PEOPLESUPPORT's
                  affiliate company.

                  For this purpose, "affiliate" means any corporation,
                  partnership or other form of association which is (i) owned or
                  Controlled, directly or indirectly, by PEOPLESUPPORT, or (ii)
                  directly or indirectly Controlling PEOPLESUPPORT, or (iii)
                  Controlled by or under Common Control, directly or indirectly,
                  with PEOPLESUPPORT. In turn, "Control" (including with
                  correlative meanings, the terms "Controlling", "Controlled by"
                  and "under Common Control") means the power to direct or cause
                  the direction of the management and policies of any
                  corporation, partnership or other form of association,

<PAGE>

                                                                         Page 13
                                     Memorandum of Agreement-PeopleSupport Lease

                  whether through the ownership of voting stock or by contract
                  or otherwise.

         (q)      The provisions of this MOA governing the option to extend the
                  Lease Term under Section 2.4 shall be adopted in the Contract
                  of Lease.

         (r)      In no event shall PEOPLESUPPORT pre-terminate the lease for
                  the period from the Lease Commencement Date up to the day
                  prior to the third anniversary of the Lease Commencement Date.

                  Commencing on the third anniversary of the Lease Commencement
                  Date, PEOPLESUPPORT may pre-terminate the lease subject to the
                  occurrence of all of the following conditions:

                           1.       PEOPLESUPPORT shall provide ALI a written
                                    notice of pre-termination at least nine (9)
                                    months prior to the effective date of
                                    termination;

                           2.       PEOPLESUPPORT shall be liable for a penalty
                                    in an amount equivalent to three (3) months'
                                    rent based on the prevailing rate;

                           3.       Prior to the pre-termination of the lease,
                                    PEOPLESUPPORT shall have vacated all of the
                                    other spaces leased by PEOPLESUPPORT in
                                    Metro Manila; and

                           4.       PEOPLESUPPORT shall not enter into any new
                                    leases in Metro Manila within a period of
                                    one (1) year after the effective date of
                                    pre-termination of the lease; provided
                                    that, PEOPLESUPPORT may only enter into a
                                    new lease in Metro Manila within the said
                                    period in the event that there is no
                                    available office space for lease in the
                                    Building.

                  Starting with the 6th year of the Lease Term, PEOPLESUPPORT
                  may pre-terminate the lease subject to the occurrence of all
                  of the following conditions:

                           1.       PEOPLESUPPORT shall provide ALI a written
                                    notice of pre-termination at least six (6)
                                    months prior to the effective date of
                                    termination; and

                           2.       PEOPLESUPPORT shall be liable for a penalty
                                    in an amount equivalent to three (3) months'
                                    rent based on the prevailing rate.

                  In the event that the Parties agree to an extension of the
                  lease term, PEOPLESUPPORT may pre-terminate the lease at any
                  time during the

<PAGE>

                                                                         Page 14
                                     Memorandum of Agreement-PeopleSupport Lease

                  extended Lease Term by providing ALI a written notice of
                  pre-teimination at least six (6) months prior to the effective
                  date of termination of the Contract of Lease. ALI shall
                  likewise have the right to pre-terminate the lease during the
                  extended Lease Term by providing PEOPLESUPPORT written notice
                  of pre-termination at least twenty four (24) months prior to
                  the effective date of termination, only on the following
                  grounds: (1) ALI shall decide to demolish the Building (or any
                  portion thereof) and establish a new structure on the Site, or
                  (2) ALI shall decide to sell the Site; provided that, in the
                  event that ALI shall have obtained a firm offer to buy the
                  Site from a third party, PEOPLESUPPORT shall be given the
                  right of first refusal on the same; provided further, that,
                  the terms of the right of first refusal shall be agreed upon
                  by the Parties. In the event that ALI is not able to sell the
                  Site before the effective date of termination of the Contract
                  of Lease, the Parties shall discuss and negotiate on the
                  possibility of extending the lease further on a year-to-year
                  basis, subject to the same terms and conditions as the
                  Contract of Lease.

                  In the event of pre-termination by PEOPLESUPPORT of the lease
                  over the Office Space or a portion thereof, ALI shall be free
                  to lease the Office Space or any portion thereof the lease of
                  which has been vacated by PEOPLESUPPORT to any prospective
                  tenant, provided however, that in the event that PEOPLESUPPORT
                  shall pre-terminate the lease over only a portion of the
                  Office Space, ALI shall not lease the portion vacated by
                  PEOPLESUPPORT to those enumerated in the list attached hereto
                  as ANNEX C while PEOPLESUPPORT continues to occupy any portion
                  of the Office Space as tenant. It is understood by the Parties
                  that the list in Annex C may be updated or amended by
                  PEOPLESUPPORT from time to time, by providing prior written
                  notice to ALI of any such update or amendment. In the event of
                  pre-termination by PEOPLESUPPORT of the Contract of Lease over
                  the entire Office Space, ALI shall be free to lease the Office
                  Space to any prospective tenant, without any prohibition.

         (s)      Notwithstanding the provision on pre-termination in Section
                  2.3(r) above, commencing on the third anniversary of the Lease
                  Commencement Date, in the event of a downturn in the operation
                  of PEOPLESUPPORT, it shall be entitled to partially reduce the
                  area of the Leased Premises by floors subject to the same
                  conditions as specified in Section 2.3 (r), second paragraph,
                  governing the pre-termination of the lease commencing from the
                  third anniversary of the Contract of Lease.

         (t)      If the Leased Premises are totally destroyed or rendered
                  totally unfit for the use intended by PEOPLESUPPORT, without
                  any fault or omission of PEOPLESUPPORT, then either Party
                  shall have the right to rescind this Contract of Lease by
                  written notice sent to the other parry without need of any
                  judicial action, and all deposits and rentals paid for the
                  unexpired portion of the lease shall be returned to
                  PEOPLESUPPORT within a reasonable period, without interest.

<PAGE>

                                                                         Page 15
                                     Memorandum of Agreement-PeopleSupport Lease

                  In the event of a partial destruction of the Leased Premises,
                  as mutually determined by the Parties, PEOPLESUPPORT may
                  choose between a proportional reduction of the rent and the
                  termination of the Contract of Lease.

                  It shall be the duty of ALI to repair at its expense, within a
                  reasonable time as agreed upon by the Parties, any damage to
                  the Leased Premises arising without the fault or omission of
                  PEOPLESUPPORT, and to render the same fit for the use intended
                  by PEOPLESUPPORT.

2.4      OPTION TO EXTEND LEASE TERM. At the beginning of the ninth year of the
         Lease Term, ALI shall inform PEOPLESUPPORT in writing of whether or not
         it shall grant PEOPLESUPPORT the option to extend the Lease Term for
         another period of five (5) years. In turn, if PEOPLESUPPORT is granted
         the option to extend the Lease Term, PEOPLESUPPORT shall inform ALI in
         writing not less than six (6) months before the end of the initial
         Lease Term whether or not PEOPLESUPPORT shall exercise its option to
         extend the Lease Term by another period of five (5) years; provided
         that, any extension of the Lease Term shall be under the same terms and
         conditions as the Contract of Lease.

         In the event that the Parties agree to extend the Lease Term for
         another period of five (5) years, the Parties shall conduct a rent
         review to determine the monthly rent due for the first year of the
         renewed term; provided that the rent due for the first year of the
         renewed term shall be based on the average prevailing market lease rate
         of comparable ALI-owned buildings in Makati (e.g. Makati Stock Exchange
         Building); provided further that any increase or decrease in the rent
         due for the first year of the renewed term shall not exceed 10% of the
         rent in the last year of the Lease Term; provided further that the
         rental rate for the next four years of the renewed term shall be
         increased at the following rates per annum over the then-prevailing
         monthly rental rate:

<TABLE>
<CAPTION>
                             Period Covered                              Rate Increase
--------------------------------------------------------------------------------------
                  From                              To
--------------------------------------------------------------------------------------
<S>       <C>                               <C>                          <C>
Year 12   Eleventh anniversary of the       Day prior to the twelfth           5%
          Lease Commencement Date           anniversary of the Lease
                                            Commencement Date

Year 13   Twelfth anniversary of the        Day prior to the thirteenth        5%
          Lease Commencement Date           anniversary of the Lease
                                            Commencement Date

Year 14   Thirteenth anniversary of the     Day prior to the fourteenth        9%
          Lease Commencement Date           anniversary of the Lease
                                            Commencement Date

Year 15   Fourteenth anniversary of the     Expiration of the Lease            9%
          Lease Commencement Date           Term
</TABLE>

<PAGE>

                                                                         Page 16
                                     Memorandum of Agreement-PeopleSupport Lease

         However, in the event that the monthly rent due for the last year of
         the Lease Term based on the escalation rates herein specified is higher
         by more than ten percent (10%) than the prevailing market monthly lease
         rate of comparable ALI-owned buildings in Makati (e.g. Makati Stock
         Exchange), as determined by an third-party property consultant
         acceptable to both Parties, then the monthly rental rates for the
         extended Lease Term shall be adjusted as follows:

<TABLE>
<CAPTION>
                             Period Covered                            Rate Adjustment
--------------------------------------------------------------------------------------
                  From                           To
--------------------------------------------------------------------------------------
<S>       <C>                            <C>                           <C>
Year 11   Tenth anniversary of the       Day prior to the                Decrease by
          Lease Commencement Date        eleventh anniversary of            10%
                                         the Lease Commencement
                                         Date

Year 12   Eleventh anniversary of the    Day prior to the                Decrease by
          Lease Commencement Date        twelfth anniversary of             5%
                                         the Lease Commencement Date

Year 13   Twelfth anniversary of the     Day prior to the                Increase by
          Lease Commencement Date        thirteenth anniversary             5%
                                         of the Lease Commencement
                                         Date

Year 14   Thirteenth anniversary of the  Day prior to the                Increase by
          Lease Commencement Date        fourteenth anniversary              9%
                                         of the Lease Commencement
                                         Date

Year 15   Fourteenth anniversary of      Expiration of the Lease         Increase by
          the Lease Commencement         Term                               9%
          Date
</TABLE>

2.5      PAYMENTS. PEOPLESUPPORT shall pay ALI the following amounts on the
         dates specified herein:

         (a)      The advance rent in an amount equivalent to three (3) months'
                  rent for both the Office Space and the Office Parking Slots,
                  based on the monthly rental rates prevailing for the first
                  year of the Lease Term, in the aggregate amounts of
                  [Php]18,643,650.00 for the Office Space and [Php]837,900.00
                  for the Office Parking Slots, shall be paid in three equal
                  installments as follows:

                  1.       [Php]6,214,550.00 for the Office Space and
                           [Php]279,300.00 for the Office Parking Slots shall be
                           paid through a manager's check within seven (7) days
                           from the signing of this MOA;

                  2.       [Php]6,214,550.00 for the Office Space and
                           [Php]279,300.00 for the Office Parking Slots shall be
                           paid upon the start of construction of the Building
                           which shall be the date of groundbreaking; provided
                           that ALI shall notify PEOPLESUPPORT in writing of the
                           date of

<PAGE>

                                                                         Page 17
                                     Memorandum of Agreement-PeopleSupport Lease

                           groundbreaking and the due date for payment of the
                           second installment on the advance rental; and

                  3.       [Php]6,214,550.00 for the Office Space and
                           [Php]279,300.00 for the Office Parking Slots shall be
                           paid in September 2004 or six (6) months from the
                           start of construction, whichever is earlier; provided
                           that ALI shall notify PEOPLESUPPORT in writing of the
                           date on which the third installment on the advance
                           rental shall be due.

                  The aggregate amount of the foregoing payments shall be
                  applied as rent for the last three (3) months of the Lease
                  Term.

                  The amount of advance rental shall at all times be maintained
                  at an amount equivalent to three (3) months' rent at the
                  prevailing rates, and shall be increased correspondingly as
                  the rental rates increase.

         (b)      The Security Deposit in an amount equivalent to three (3)
                  months' rent for both the Office Space and the Office Parking
                  Slot, based on the monthly rental rates prevailing for the
                  first year of the Lease Term, in the aggregate amounts of
                  [Php]18,643,650.00 for the Office Space and [Php]837,900.00
                  for the Office Parking Slots, shall be paid in three (3) equal
                  installments as follows:

                  1.       [Php]6,214,550.00 for the Office Space and
                           [Php]279,300.00 for the Office Parking Slots shall be
                           paid upon turn-over of possession of the Office Space
                           but in no case earlier than April 15, 2005;

                  2.       [Php]6,214,550.00 for the Office Space and
                           [Php]279,300.00 for the Office Parking Slots shall be
                           paid on May 15, 2005; and

                  3.       [Php]6,214,550.00 for the Office Space and
                           [Php]279,300.00 for the Office Parking Slots shall be
                           paid on June 15, 2005.

                  The Security Deposit shall remain fixed and shall not be
                  subject to escalation for the duration of the Lease Term.

                                   SECTION 3
                                  TERMINATION

3.1      FAILURE TO COMPLETE CONSTRUCTION. In the event that ALI is unable to
         complete the construction of the Building and turn over the Office
         Space to PEOPLESUPPORT by April 15, 2005 due to causes directly
         attributable to ALI or its designated Contractor (which shall, for the
         avoidance of doubt, exclude events constituting force majeure, acts of
         government and other events occurring during construction which are
         beyond the control of ALI, or events not due to ALI's acts which cause
         the non-compliance by ALI of its undertakings), PEOPLESUPPORT shall
         have the right either to compel the

<PAGE>

                                                                         Page 18
                                     Memorandum of Agreement-PeopleSupport Lease

         performance by ALI to complete the construction of the Building or,
         upon prior written notice to ALI, rescind this MOA and the Contract Of
         Lease. In case of rescission of this MOA and the Contract of Lease to
         be entered into by the Parties, by PEOPLESUPPORT, ALI shall have the
         obligation to return to PEOPLESUPPORT any and all payments made by
         PEOPLESUPPORT to ALI as of the date of rescission, without interest.

         The foregoing paragraph and the right of PEOPLESUPPORT to rescind this
         MOA and the Contract of Lease due to ALI's failure to complete the
         construction of the Building by April 15, 2005 shall only apply when
         all of the following conditions are met: (1) the Parties have agreed
         upon, finalized and signed off on the project brief, user's
         requirements and building design criteria not later than December 31,
         2003; and (2) the Parties have agreed upon, finalized and signed off on
         the design development plans and specifications not later than February
         15, 2004.

         In the event that PEOPLESUPPORT shall exercise its right to compel the
         performance by ALI to complete the construction of the Building, the
         effectivity date of the lease and the Lease Commencement Date shall be
         deferred to a date agreed upon by the Parties.

         In addition to the foregoing rights of PEOPLESUPPORT to seek a
         rescission of the MOA and the Contract of Lease or to require specific
         performance by ALI to complete the construction of the Building,
         PEOPLESUPPORT shall be entitled to damages from ALI. It is agreed that
         the liability of ALI for damages shall be limited to the payment by ALI
         of the following amounts, at the option of ALI:

         (a)      The difference between the monthly rent agreed upon by the
                  Parties herein and the monthly rent actually paid by
                  PEOPLESUPPORT, both to be computed for the period commencing
                  on August 1, 2005 and ending on the date on which
                  PEOPLESUPPORT shall have completed the tenant fit-out on the
                  Office Space as provided in Section 1.3, subject to the
                  following conditions:

                  (i)      ALI shall only be liable for such rate differential
                           for a period not exceeding six (6) months;

                  (ii)     ALI shall only be liable for an amount not exceeding
                           [Php]4,637,290.50 per month; and

                  (iii)    In any event, ALI's liability shall be limited to
                           [Php]27,823,743.00.

         (b)      To provide PEOPLESUPPORT with office space in a building of
                  similar class to the Building, in a location within Makati
                  City, with an area as may be required by PEOPLESUPPORT at that
                  time, which PEOPLESUPPORT may lease temporarily, subject to
                  such terms and conditions as may be agreed upon by the
                  Parties, provided that, in no event shall ALI be liable to pay
                  or assume rent and other charges for such office space for
                  more than [Php]4,637,290.50 per month for a period

<PAGE>

                                                                         Page 19
                                     Memorandum of Agreement-PeopleSupport Lease

                  not exceeding six (6) months or a maximum total amount of
                  [Php]27,823,743.00.

                  In the event that ALI shall opt to provide PEOPLESUPPORT with
                  a substitute office space for temporary lease, the following
                  conditions shall apply:

                  (i)      The temporary office space shall have an area as may
                           be required by PEOPLESUPPORT at that time;

                  (ii)     PEOPLESUPPORT may lease and occupy the temporary
                  office space for the period commencing on August 1, 2005 and
                  ending on the date on which PEOPLESUPPORT shall have completed
                  the fit-out of the Office Space in the Building, as provided
                  in Section 1.3 hereof;

                  (iii)    ALI and PEOPLESUPPORT shall jointly execute a
                  contract of lease for the temporary lease of this office space
                  with the relevant lessor; and

                  (iv)     ALI's liability shall be limited to a maximum total
                           amount of [Php]27,823,743.00 or [Php]4,637,290.50 per
                           month for a period not exceeding six (6) months.

         At least six (6) months before February 1, 2005, ALI shall notify
         PEOPLESUPPORT in writing as to whether or not it shall be able to
         complete the construction of the Building by April 15, 2005.

         It is further agreed by the Parties that such limited liability shall
         only apply to instances of failure to deliver the Building or the
         Leased Premises that are not intentional. However, if it is proven that
         such failure to deliver is intentional, ALI shall be liable for all
         actual and consequent damages that PEOPLESUPPORT shall actually incur.

3.2      NON-COMPLIANCE WITH UNDERTAKINGS. The failure by PEOPLESUPPORT to
         perform any of its undertakings under this MOA (other than due to force
         majeure or events not due to PEOPLESUPPORT's acts or fault, or due to
         events beyond the control of PEOPLESUPPORT) ALI shall have the right,
         upon prior written notice to PEOPLESUPPORT, to rescind this Agreement.
         In case of rescission of this Agreement by ALI, ALI shall forfeit in
         its favor all payments made by PEOPLESUPPORT as of the date of
         rescission, including the advance rental and Security Deposit.

                                    SECTION 4
                            MISCELLANEOUS PROVISIONS

4.1      GOVERNING LAW AND VENUE OF SUIT. This MOA and the rights and
         obligations of the Parties shall be governed by and construed in
         accordance with the laws of the Republic of the Philippines. Any and
         all actions or suits

<PAGE>

                                                                         Page 20
                                     Memorandum of Agreement-PeopleSupport Lease

         in connection with or arising from this MOA shall be filed with or
         instituted in the proper court of Makati City, Metro Manila.

4.2      NOTICES. Notices to either Party shall be sent to the Party's address
         as provided in the recitals of this Memorandum of Agreement, and to the
         attention of the persons representing such Party in this Memorandum of
         Agreement.

IN WITNESS WHEREOF, the parties have signed these presents on the date and in
the place first above written.

                                AYALA LAND, INC.
                                       By:

/s/ FRANCISCO H. LICUANAN III               /s/ MA. VICTORIA E. ANONUEVO
------------------------------              ------------------------------------
FRANCISCO H. LICUANAN III                   MA. VICTORIA E. ANONUEVO
                                Attorneys-In-Fact

                        PEOPLESUPPORT (PHILIPPINES) INC.

                                       By:

                                           /s/ RAINERIO M. BORJA
                                           -------------------------------------
                                           RAINERIO M. BORJA
                                           President

                           SIGNED IN THE PRESENCE OF:

/s/ RAUL R. CORTEZ                         /s/ [ILLEGIBLE]
---------------------                      -------------------------------------

<PAGE>

                                                                         Page 21
                                     Memorandum of Agreement-PeopleSupport Lease

                                 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)
MAKATI CITY, METRO MANILA  ) S.S.

         BEFORE ME, a Notary Public for and in the above jurisdiction, this ___
day of DEC 15 2003 personally appeared the following:

<TABLE>
<CAPTION>
         Name               Community Tax Cert. No.      Date/Place Issued
<S>                         <C>                          <C>
Ayala Land, Inc.                  69781                    1-9-03 / MAKATI CITY
represented by:
Francisco H. Licuanan III         14437931                 2-19-03 / MAKATI CITY
Ma. Victoria E. Anonuevo          12252715                 1-27-03 / MANILA

People Support (Phils.) Inc.
represented by:                14489061                    04-03-03 / MAKATI
Rainerio M. Borja
</TABLE>

known to me and by me known to be the same persons who executed the foregoing
instrument and they acknowledged to me that the same is their free and voluntary
act and deed, as well as that of the corporations represented therein.

WITNESS MY HAND AND NOTARIAL SEAL on the date and in the place above written.

Doc. No. 175;                                  /s/ YAZMIN M. FACTORAN - ESTRELLA
Page No. 36;                                       YAZMIN M. FACTORAN - ESTRELLA
Book No. II;                                              NOTARY PUBLIC
Series of 2003.                                       UNTIL DECEMBER 31, 2004
                                                          PTR # 7621351A
ALI Legal/CBG/CBG-PeopleSupport-MOA-ExecutionCopy       ISSUED JAN. 3, 2003
                                                      ISSUED AT MAKATI CITY
<PAGE>

                                                                         ANNEX A

                                 LOCATION PLAN

                                     [MAP]
<PAGE>
                                                                         ANNEX B
                                                                     Page 1 of 8

                            PLANS AND SPECIFICATIONS

                              [GROUND FLOOR PLAN]

GROUND FLOOR PLAN

<PAGE>

                                                                         ANNEX B
                                                                     Page 2 of 8

                            PLANS AND SPECIFICATIONS

                              [SECOND FLOOR PLAN]

SECOND FLOOR PLAN

<PAGE>

                                                                         ANNEX B
                                                                     Page 3 of 8

                            PLANS AND SPECIFICATIONS

                         [TYPICAL 3RD - 5TH FLOOR PLAN]

TYPICAL 3RD-5TH FLOOR PLAN

<PAGE>

                                                                         ANNEX B
                                                                     Page 4 of 8

                            PLANS AND SPECIFICATIONS

                                   [PICTURE]

PERSPECTIVE

<PAGE>

                                                                         ANNEX B
                                                                     PAGE 5 OF 8

                            PLANS AND SPECIFICATIONS

BUILDING SPECIFICATIONS

NUMBER OF FLOORS                  5 levels
FLOOR TO FLOOR HEIGHT             4.0 m for Ground Floor
                                  2.8 m for 2nd Floor
                                  3.4 m for 3rd, 4th, and 5th floors
GROSS LEASABLE AREA               17,075.5 sm
        OFFICE                    15,805.5 sm
        RETAIL                    1,270.0 sm
GROSS FLOOR PLATE                 5,006 sm
BUILDING EFFICIENCY               88%

AMENITIES                         Retail Establishments
                                  Provision for Executive Toilets/Tenant Pantry
                                  Administration Office
                                  CCTV Security System at Lobby

ARCHITECTURAL FINISHES

GROUND FLOOR                      EXTERIOR.

                                       - Clear tempered glass for ground floor
                                         doors and windows

                                  INTERIOR.

                                       - Gypsum ceiling boards with downlights
                                         for main lobby

                                       - Homogeneous Ceramic Tile flooring

TYPICAL FLOOR                     EXTERIOR.

                                       - Textured Paint on Concrete exterior
                                         finishes

                                       - 6mm thk tempered glass on Powder Coated
                                         Aluminum Frame Windows

                                  ELEVATOR LOBBIES.

                                       - Gypsum ceiling boards with downlights

                                       - Homogeneous ceramic Tile flooring

                                  TOILETS.
                                       - Painted Gypsum ceiling boards with
                                         downlights

                                       - Glazed ceramic Tiles on walls and
                                         unglazed ceramic Tiles on floors

                                       - Modular toilet partitions

                                       - Stone Counter top

<PAGE>

                                                                         ANNEX B
                                                                     PAGE 6 OF 8

                            PLANS AND SPECIFICATIONS

                                  STAIRS.

                                       - Plain cement concrete with non-slip
                                         nosing and painted G. I. handrail

 LEASABLE UNITS                   WALLS.

                                       - Plain Cement Finish/Gypsum Walls ready
                                         to receive paint

                                  FLOORS.
                                       - Straight to Finish Cement Flooring

                                  CEILINGS.

                                       - Off-form Concrete Finish

TELECOMMUNICATIONS                Telephone system with all data-grade category
                                  5e wiring and conduiting from main
                                  distribution frame to telephone terminal
                                  cabinets on each floor

                                  Chase and Telecom room provisions to allow for
                                  three lease line providers

                                  Telecommunication clean grounding

VERTICAL TRANSPORT                3 units elevator rated at 1,600 kg carrying
                                  capacity at 1.50 m/s

VENTILATION/                      Air-conditioned elevator lobbies, corridors,
AIRCONDITIONING                   admin offices, circulation areas

                                  Centralized cooling tower and packaged
                                  water-cooled units (pwcu) with main cooling
                                  duct connections provisions(1)

                                  460V power provision for air conditioning
                                  equipment

                                  Ventilation for common toilets, electrical
                                  rooms, Utility rooms, garbage rooms, storage
                                  rooms

                                  Main kitchen exhaust duct risers For Ground
                                  Floor Retail Spaces

                                  Fire smoke exhaust and stair pressurization
                                  systems

<PAGE>

                                                                         ANNEX B
                                                                     PAGE 7 OF 8

                            PLANS AND SPECIFICATIONS

FIRE PROTECTION/                  Automatic fire sprinkler system
LIFE SAFETY SYSTEM

                                  Wet and Dry standpipe system

                                  Fire storage tank of 90,000 gallons at the
                                  utility area

                                  Fire pumping system - fire and jockey pumps

                                  Portable fire extinguishers

 SECURITY SYSTEM                  CCTV security surveillance system

 SANITARY AND PLUMBING            MWSS Water source

                                  Water distribution - 70,000 gallon water tank
                                  and booster pumping system to distribute
                                  domestic water to all floors including cooling
                                  tower make-up water.

                                  Water sub-meters

                                  G.I. pipe, schedule 40, local cold water lines

                                  Storm drainage system - cast iron drains with
                                  brass strainers at roofs, decks, ledges and
                                  PVC downspouts channeled to concrete drain
                                  pipes for disposal to existing creek

                                  PVC sewer horizontal pipes and soil stacks

                                  sewage retention / holding tank of 105 cubic
                                  meter capacity

                                  Oil interceptor for genset and UPS rooms

                                  Central grease tank for ground floor
                                  restaurants

<PAGE>

                                                                         ANNEX B
                                                                     PAGE 8 OF 8

                            PLANS AND SPECIFICATIONS

ELECTRICAL                        2 units MECO 2 MVA(2) transformers

                                  Electrical radial distributions provided from
                                  electrical rooms

                                  100% demand power back-up power provided by 2
                                  units 1870 KVA water cooled diesel engine
                                  generators

                                  Lighting in elevator lobbies, admin offices,
                                  toilet corridors, circulation areas, exterior
                                  building areas

                                  Fire alarm system with addressable smoke and
                                  heat detection sensors connected to the smoke
                                  exhaust system

                                  Lightning protection system covering a radius
                                  of 50 meters around the office tower apex

                                  Grounding system available on each electrical
                                  room per floor. Separate clean grounding for
                                  telecommunications and computer systems

(1) PeopleSupport (Philippines) Inc. shall be responsible for the provision of
variable air volume (VAV) units, ductworks, and aircon booths for its Office
Space.

(2) For further verification.

<PAGE>

                                                                         ANNEX C
                                                                     PAGE 1 OF 2

                              MAJOR COMPETITORS OF
                        PEOPLESUPPORT (PHILIPPINES) INC.

1.  Acallade International

2.  Accord Customer Care Solutions

3.  Advanced Contact Solutions

4.  AIG BPO

5.  Ambergris Solutions

6.  AOL

7.  APAC

8.  Asian Call Centres

9.  BCD Pinpoint

10. CA Telemarketing

11. Call Asia

12. Client Logic

13. Contact World

14. ContactPoint Outbound Services, Inc.

15. Convergys

16. Customer Care Contact Center

17. Customer Contact Center

18. Cybercity Teleservices

19. Daksh

20. Easycall Communications Philippines

21. ENZI Corp

22. ePacific Global Contact Center

23. e-Performax

24. Epixstar

25. e-Telecare

26. Expercs Direct Communications

27. Galileo Asia

28. Global Technology Solutions

29. Globalstride

30. Harte-Hanks

31. ICT

32. Immequire Philippines

33. Incoho Philippines

34. INFOnxx

35. iPeople

36. iTouchPoint

37. Link2Support

38. Pacific Connexion

39. Parlance Systems

40. Pilipinas Teleserv

<PAGE>

                                                                         ANNEX C
                                                                     PAGE 2 OF 2

                              MAJOR COMPETITORS OF
                        PEOPLESUPPORT (PHILIPPINES) INC.

41. PRC

42. QInteraction

43. Reese Brothers

44. RMH

45. SC Reservations (Philippines), Inc.

46. Sitel

47. Six Continents

48. SMi Services (now SM e-Ventures)

49. Source One Asia

50. Stream

51. SVI Connect

52. Sykes Asia

53. Telephilippines

54. TeleTech

55. Vertex Solutions

56. Vision X Inc.

57. Vocativ Systems

58. West

59. Western Wats

60. ePLDT

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