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                                                                    EXHIBIT 10.1

                          COMMON STOCK PURCHASE WARRANT

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

                                    DDI CORP.

Date of Initial Issuance:  September 21, 2005
Number of Shares:          4,297,131
Initial Warrant Price:     $0.75 per share
Expiration Date:           July 31, 2006

      THIS CERTIFIES that, for value received, Contrarian Turnaround Equities,
LLC, or its registered assigns to the extent permitted hereunder (the "HOLDER"),
is entitled to subscribe for and purchase from DDi CORP., a Delaware corporation
(the "COMPANY"), upon the terms and conditions set forth herein, at any time
during the Term (as defined below) of this Warrant, 4,297,131 shares of common
stock, $0.001 par value per share, of the Company ("COMMON STOCK"), at the
Warrant Price (as defined below), payable as provided herein. As used herein,
the term "this Warrant" shall mean and include this Warrant and any Warrant or
Warrants hereafter issued as a consequence of the exercise or transfer of this
Warrant in whole or in part.

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

      SECTION 1. Definitions.

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

            "AFFILIATE" of any specified Person means any other Person directly
or indirectly controlling, controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, "control"
when used with respect to any Person means the power to direct the management
and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative to the foregoing. No
Person shall be deemed an Affiliate of another Person solely by virtue of the
fact that both Persons own shares of the Company's capital stock.
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            "BUSINESS DAY" shall mean any day other than Saturday, Sunday and
any day on which banking institutions in the State of New York are authorized by
Law or other governmental action to close.

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

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

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

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

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

            "WARRANT PRICE" shall mean $0.75 per share, subject to adjustment in
accordance with Section 5 hereof.

      SECTION 2. EXERCISE OF WARRANT.

            2.1 Procedure for Exercise of Warrant. To exercise this Warrant in
whole or in part (but not as to any fractional share of Common Stock), the
Holder shall deliver to the Company at its office referred to in Section 10
hereof at any time and from time to time during the Term of this Warrant: (i)
the Notice of Exercise in the form of Exhibit A attached hereto, (ii) cash, a
certified or official bank check payable to the order of the Company, or a wire
transfer of funds to the Company's account, in each case in the amount of the
Warrant Price for each share being purchased and any amount required to be paid
by the Holder on account of a transfer of a Warrant or Warrant Shares pursuant
to Section 3 hereof, and (iii) this Warrant.

            In the event of any exercise of the rights represented by this
Warrant, a certificate or certificates for the shares of Common Stock so
purchased, registered in the name of the Holder or, subject to compliance with
Section 6.2, such other name or names as may be designated by the Holder, shall
be delivered to the Holder hereof within a reasonable time, not exceeding three
Business Days, after the rights represented by this Warrant shall have been so
exercised; and, unless this Warrant has expired, a new Warrant representing the
number of shares with respect to which this Warrant shall not then have been
exercised shall also be issued to the Holder hereof within such time. The person
in whose name any certificate for shares of Common Stock is issued upon exercise
of this Warrant shall for all purposes be deemed to have become the holder of
record of such shares on the date on which the Holder shall have complied with
the conditions for exercise of this Warrant set forth above, irrespective of the
date of delivery of such certificate, except that, if the date of such
compliance is a date when the stock transfer books of the Company are closed,
such person shall be deemed to have become the

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holder of such shares at the close of business on the next succeeding date on
which the stock transfer books are open.

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

            "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
            UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")
            AND/OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. SUCH SHARES MAY
            NOT BE OFFERED OR SOLD OR TRANSFERRED EXCEPT (A) PURSUANT TO AN
            EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
            REGISTRATION AND/OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES
            LAWS, (B) IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER
            THE SECURITIES ACT AND REGISTRATION AND/OR QUALIFICATION UNDER
            APPLICABLE STATE SECURITIES LAWS PROVIDED THAT AT THE ISSUER'S
            REQUEST, THE TRANSFEROR THEREOF SHALL HAVE DELIVERED TO THE ISSUER
            AN OPINION OF COUNSEL (WHICH OPINION SHALL BE IN FORM, SUBSTANCE AND
            SCOPE REASONABLY SATISFACTORY TO THE ISSUER FROM COUNSEL REASONABLY
            SATISFACTORY TO THE ISSUER) TO THE EFFECT THAT SUCH SECURITIES MAY
            BE SOLD OR TRANSFERRED PURSUANT TO AN EXEMPTION FROM SUCH
            REGISTRATION, OR (C) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE
            144 PROMULGATED UNDER THE SECURITIES ACT."

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

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      SECTION 3. COVENANTS AS TO COMMON STOCK. The Company shall at all times
reserve and keep available out of its authorized but unissued Common Stock (or
out of shares of Common Stock held in its treasury) solely for the purpose of
issuance upon the exercise of this Warrant, the maximum number of Warrant Shares
issuable upon the exercise of this Warrant. The Company covenants and agrees
that all shares of Common Stock that may be issued upon the exercise of the
rights represented by this Warrant shall, upon issuance, be validly issued,
fully paid and nonassessable, and free from all taxes, liens, preemptive rights
and charges with respect to the issue thereof. The Company shall take all such
actions as may be necessary to ensure that all such Warrant Shares may be so
issued without violation by the Company of any applicable law or governmental
regulation or any requirements of any domestic securities exchange or quotation
system upon which shares of Common Stock or other securities constituting
Warrant Shares may be listed or quoted (except for official notice of issuance
which shall be immediately delivered by the Company upon each such issuance).
The Company further covenants and agrees that it shall pay when due and payable
any and all federal and state documentary or stamp taxes (other than federal or
state income taxes) which may be payable in respect of the issue of this Warrant
or any Common Stock or certificates therefor issuable upon the exercise of this
Warrant, except that, if Warrant Shares or new Warrants shall be registered in a
name or names other than the name of the Holder, funds sufficient to pay all
transfer taxes payable as a result of such transfer shall be paid by the Holder
at the time of delivery of the Notice of Exercise.

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

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

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

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

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

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

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

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

            (e) In the case of any proposed consolidation or merger of the
      Company with another entity, or the proposed sale of all or substantially
      all of its assets to another person or entity, or any proposed
      consolidation, reorganization, recapitalization, or reclassification of
      the capital stock of the Company or other transaction, then, as a
      condition of such consolidation, merger, sale, consolidation,
      reorganization, recapitalization, reclassification or other transaction,
      the Company shall give 30 days' prior written notice thereof to the Holder
      hereof and lawful and adequate provision shall be made whereby the Holder
      shall thereafter have the right to receive upon the basis and upon the
      terms and conditions specified herein, in lieu of the Warrant Shares
      immediately theretofore purchasable hereunder, such shares of stock,
      securities, cash or assets as may (by virtue of such consolidation,
      merger, sale, consolidation, reorganization, recapitalization,
      reclassification or other transaction) be issued or payable with respect
      to or in exchange for the number of Warrant Shares purchasable hereunder
      immediately before such consolidation, merger, sale, reorganization,
      recapitalization, reclassification or other transaction. In any such case
      appropriate provision shall be made with respect to the rights and
      interests of the Holder to the end that the

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

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

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

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

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

      SECTION 6. OWNERSHIP.

            6.1 Ownership of Warrant. The Company may deem and treat the person
in whose name this Warrant is registered as the holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by anyone
other than the Company) for all

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purposes and shall not be affected by any notice to the contrary until
presentation of this Warrant for registration of transfer as provided in this
Section 6.

            6.2 Transfer and Replacement.

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

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

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

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Value of such fractional share over the Warrant Price for such fractional share
on the exercise date.

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

                  (i) If the Common Stock is listed on a national securities
exchange, the Nasdaq National Market or another nationally recognized trading
system as of the exercise date, the Fair Market Value per share of Common Stock
shall be deemed to be the average of the high and low reported sale prices per
share of Common Stock thereon on the trading day immediately preceding the
effective date or the exercise date, as applicable (provided that if no such
price is reported on such day, the Fair Market Value per share of Common Stock
shall be determined pursuant to clause (ii)).

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

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

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

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

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

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

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

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

                                       10
<PAGE>
liability of the Holder for the Warrant Price hereunder or as a stockholder of
the Company, whether such liability is asserted by the Company or by creditors
of the Company.

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

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

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

                                       11
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Warrant to be signed by
their duly authorized officers this 21st day of September, 2005.

                                         DDi CORP.

                                         /s/ Timothy J. Donnelly
                                         _______________________________________
                                         Name:  Timothy J. Donnelly
                                         Title: Vice President and
                                                General Counsel

                                         CONTRARIAN TURNAROUND EQUITIES, LLC

                                         By:   Contrarian Capital Management,
                                               LLC, its manager

                                         /s/ Jason Mudrick
                                         _______________________________________
                                         Name:  Jason Mudrick
                                         Title: Portfolio Manager

                                         Address:

                                         411 W. Putnam Ave., Suite 225
                                         Greenwich, CT  06830

                                         Attention:  Jason Mudrick

                                         Facsimile:

                                       12
<PAGE>
                                    EXHIBIT A

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

                        TO EXERCISE THE ATTACHED WARRANT

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

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

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

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

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

                              [Type Name of Holder]

                              By:    ________________
                              Title: ________________

Date:    ________________

                                       13
<PAGE>
                                    EXHIBIT B
                               FORM OF ASSIGNMENT
                                    (ENTIRE)

               [To be signed only upon transfer of entire Warrant]

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

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

                              [Type Name of Holder]

                              By:    ________________
                              Title: ________________

Date: ________________

NOTICE:

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

                                       14
<PAGE>
                                    EXHIBIT C
                               FORM OF ASSIGNMENT
                                    (PARTIAL)

              [To be signed only upon partial transfer of Warrant]

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

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

                              [Type Name of Holder]

                              By:    ________________
                              Title: ________________

Date: ________________

NOTICE:

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

                                       15
<PAGE>

                            SCHEDULE TO EXHIBIT 10.1

DDi Corp. entered into Common Stock Purchase Warrant on September 21, 2005 with
the following Holders substantially identical to this Exhibit 10.1, except as
described below:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
                   HOLDER                    NUMBER OF SHARES            OTHER
--------------------------------------------------------------------------------
<S>                                          <C>                         <C>
Caiman Partners, L.P.                            3,222,808                  -
--------------------------------------------------------------------------------
Greywolf Capital Partners II LP                  1,611,404                  -
--------------------------------------------------------------------------------
QVT Fund LP                                      4,297,131                 (1)
--------------------------------------------------------------------------------
Sankaty Credit Opportunities, L.P.               1,335,209                  -
--------------------------------------------------------------------------------
Sankaty High Yield Asset Partners, L.P.            324,214                  -
--------------------------------------------------------------------------------
Sankaty High Yield Partners II, L.P.               431,372                  -
--------------------------------------------------------------------------------
Sankaty High Yield Partners III, L.P.              431,372                  -
--------------------------------------------------------------------------------
Prospect Harbor Credit Partners, LP                163,396                  -
--------------------------------------------------------------------------------
</TABLE>

-----------
(1) This warrant contains the following addition provision:

            "2.3 Limitation on Exercise. Notwithstanding any provision of this
      Warrant to the contrary, the number of shares of Common Stock that may be
      acquired by Holder upon any exercise of this Warrant shall be limited to
      the extent necessary to ensure that, following such exercise, the total
      number of shares of Common Stock then beneficially owned by Holder and its
      Affiliates and any other Persons whose beneficial ownership of Common
      Stock would be aggregated with Holder's for purposes of Section 13(d) and
      Section 16 of the Exchange Act does not exceed 9.999% of the total number
      of issued and outstanding shares of Common Stock (including for such
      purpose the shares of Common Stock issuable upon exercise of this
      Warrant). For such purposes, beneficial ownership shall be determined in
      accordance with Section 13(d) of the Exchange Act and the rules and
      regulations promulgated thereunder. The Company's obligation to issue
      shares of Common Stock in excess of the limitation referred to in this
      Section 2.3 shall be suspended (and shall not terminate or expire
      notwithstanding any contrary provisions hereof) until such time, if any,
      as such shares of Common Stock may be issued in compliance with such
      limitation. By written notice to the Company at any time on or after the
      date hereof, Holder may waive the provisions of this Section 2.3 or
      increase or decrease such limitation percentage to any other percentage
      specified in such notice, not to exceed 9.999%. Any such waiver or
      increase will not be effective until the sixty-fifth day after such notice
      is delivered to the Company."

                                       16<PAGE>

                                                                    EXHIBIT 10.2

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

                          REGISTRATION RIGHTS AGREEMENT

                                  by and among

                                    DDi CORP.

                                       AND

                          THE HOLDERS SIGNATORY HERETO

                         Dated as of September 21, 2005

================================================================================
<PAGE>
                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of September
21, 2005, among those holders of Common Stock signatory hereto (the "HOLDERS")
and DDi CORP., a Delaware corporation (the "COMPANY").

         WHEREAS:

         A. Pursuant to that certain Standby Securities Purchase Agreement,
dated as of June 2, 2005 (the "PURCHASE AGREEMENT"), between the Company and the
purchasers signatory thereto, upon the satisfaction of certain conditions, the
Company will issue Rights Offering Common Stock and Standby Commitment Fee
Warrants (as defined below) to the Holders.

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

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

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

1.       DEFINITIONS.

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

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

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

         "BLACK SCHOLES WARRANT VALUE" shall mean the value of a warrant as
determined by the Board of Directors as of the date of determination using the
Black-Scholes valuation formula (based upon the advice of an independent
investment bank of national standing selected by the Board of Directors), which
value shall be determined by customary nationally recognized investment banking
practices using such formula. For purposes of calculating such amount, (1) the
term of the warrants will be the time from the date of determination to the
expiration date of such warrants, (2) the assumed volatility will be 35%, (3)
the assumed risk-free rate will equal
<PAGE>
the yield on three month U.S. Treasury securities, and (4) the price for each
share of Common Stock will be (x) the average closing price of a share of Common
Stock for the twenty consecutive trading days immediately preceding, but not
including, the date of determination as reported on the principal national
securities exchange on which the shares of Common Stock are listed or admitted
for trading or (y) if not listed or admitted for trading on any national
securities exchange, the average of the closing bid and asked prices during such
twenty trading day period in the over-the-counter market as reported by the
Nasdaq National Market or any comparable system or (z) in all other cases, as
determined in good faith by the Board of Directors of the Company, based on the
advice of an independent investment bank of national standing selected by the
Board of Directors.

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

         "COMMISSION" means the Securities and Exchange Commission.

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

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

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

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

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

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

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

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

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

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

         "PROSPECTUS" shall mean the prospectus included in a Resale
Registration Statement, including any preliminary prospectus, and any such
prospectus as amended or supplemented by

                                       2
<PAGE>
any prospectus supplement, including a prospectus supplement with respect to the
terms of the offering of any portion of the Registrable Securities or
Registrable Liquidated Damages Warrant Securities covered by a Resale
Registration Statement or a Warrant Resale Registration Statement, and by all
other amendments and supplements to a prospectus, including post-effective
amendments, and, in each case, including all documents incorporated by reference
therein.

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

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

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

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

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

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

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

         "STANDBY COMMITMENT FEE WARRANT" means one of the Common Stock Purchase
Warrants, dated as of September 21, 2005, issued pursuant to the terms of the
Purchase Agreement, entitling the Holder thereof to purchase Warrant Common
Stock under the terms and subject to the conditions set forth therein.

                                       3
<PAGE>
         "TRANSFER" means and includes the act of selling, giving, transferring,
creating a trust (voting or otherwise), assigning or otherwise disposing of
(other than pledging, hypothecating or otherwise transferring as security or any
transfer upon any merger or, consolidation) (and correlative words shall have
correlative meanings); provided, however, that any transfer or other disposition
upon foreclosure or other exercise of remedies of a secured creditor after an
event of default under or with respect to a pledge, hypothecation or other
transfer as security shall constitute a Transfer.

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

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

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

2. RESALE REGISTRATION.

         (a) Registration Requirement.

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

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

                                       4
<PAGE>
pursuant to Section 1.3 of the Purchase Agreement for each month or part thereof
that such Resale Registration Statement has not been declared effective, payable
in monthly installments. The payment of liquidated damages pursuant to this
paragraph shall be made by the Company, at its option, either in cash or in
Liquidated Damages Warrants having a value (such value to be determined as set
forth below) equal to such liquidated damages. Such Liquidated Damages Warrants
shall contain the same terms as the Standby Commitment Fee Warrants except that
they shall have an exercise period of one year from the date of actual issuance,
and they shall have an exercise price (x) with respect to the first installment
of Liquidated Damages Warrants, equal to the Average Share Price (as defined in
the Purchase Agreement) on the date on which the Company first becomes obligated
to pay the liquidated damages and (y) with respect to any subsequent installment
of Liquidated Damages Warrants, on the first Business Day of the month period
for which such installment is issuable. The value of such Liquidated Damages
Warrants shall be equal to their Black Scholes Warrant Value. Liquidated damages
shall be deemed to commence accruing on the day on which the event triggering
such liquidated damages occurs. The liquidated damages to be paid to the Holders
pursuant to this Section 2(a) shall cease to accrue (i) with respect to the
liquidated damages for failure to have the Resale Registration Statement filed
with the Commission on or prior to the fifth Business Day following the Closing,
on the day that the Resale Registration Statement has been filed with the
Commission or (ii) with respect to the liquidated damages for failure to have
the Resale Registration Statement declared effective on or prior to the sixtieth
(60th) day after it is filed with the Commission, on the day that the Resale
Registration Statement has been declared effective by the Commission. The
parties hereto agree that the liquidated damages provided for in this Section
2(a) constitute a reasonable estimate of the damages that will be suffered by
the Holders by reason of the failure of the Resale Registration Statement to be
filed and/or to be declared effective, as the case may be, in accordance with
this Agreement.

         (b) Effectiveness Requirement.

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

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

                                       5
<PAGE>
value (such value to be determined as set forth below) equal to such liquidated
damages. Such Liquidated Damages Warrants shall contain the same terms as the
Standby Commitment Fee Warrants except that they shall have an exercise period
of one year from the date of actual issuance, and they shall have an exercise
price (x) with respect to the first installment of Liquidated Damages Warrants,
equal to the Average Share Price (as defined in the Purchase Agreement) on the
date on which the Company first becomes obligated to pay the liquidated damages
and (y) with respect to any subsequent installment of Liquidated Damages
Warrants, on the first Business Day of the month period for which such
installment is issuable. The value of such Liquidated Damages Warrants shall be
equal to their Black Scholes Warrant Value. Liquidated damages shall be deemed
to commence accruing on the day on which the event triggering such liquidated
damages occurs. The liquidated damages to be paid to the Holders pursuant to
this Section 2(b) shall cease to accrue on the day the Holders have received
notice from the Company regarding the reinstatement of effectiveness of the
Resale Registration Statement. The parties hereto agree that the liquidated
damages provided for in this Section 2(b) constitute a reasonable estimate of
the damages that will be suffered by the Holders by reason of the failure of the
Resale Registration Statement to remain effective in accordance with this
Agreement.

         (c) Warrant Resale Registration Statement.

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

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

                                       6
<PAGE>
Liquidated Damages Warrants shall contain the same terms as the Standby
Commitment Fee Warrants except that they shall have an exercise period of one
year from the date of actual issuance, and they shall have an exercise price (x)
with respect to the first installment of Liquidated Damages Warrants, equal to
the Average Share Price (as defined in the Purchase Agreement) on the date on
which the Company first becomes obligated to pay the liquidated damages and (y)
with respect to any subsequent installment of Liquidated Damages Warrants, on
the first Business Day of the month period for which such installment is
issuable. The value of such Liquidated Damages Warrants shall be equal to their
Black Scholes Warrant Value. Liquidated damages shall be deemed to commence
accruing on the day on which the event triggering such liquidated damages
occurs. The liquidated damages to be paid to the Holders pursuant to this
Section 2(c) shall cease to accrue (i) with respect to the liquidated damages
for failure to have the Warrant Resale Registration Statement filed with the
Commission on or prior to the tenth Business Day following the Closing, on the
day that the Warrant Resale Registration Statement has been filed with the
Commission or (ii) with respect to the liquidated damages for failure to have
the Warrant Resale Registration Statement declared effective on or prior to the
sixtieth (60th) day after it is filed with the Commission, on the day that the
Warrant Resale Registration Statement has been declared effective by the
Commission. The parties hereto agree that the liquidated damages provided for in
this Section 2(c) constitute a reasonable estimate of the damages that will be
suffered by the Holders by reason of the failure of the Warrant Resale
Registration Statement to be filed and/or to be declared effective, as the case
may be, in accordance with this Agreement.

         (d) Warrant Resale Registration Statement Effectiveness Requirement.

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

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

                                       7
<PAGE>
contain the same terms as the Standby Commitment Fee Warrants except that they
shall have an exercise period of one year from the date of actual issuance, and
they shall have an exercise price (x) with respect to the first installment of
Liquidated Damages Warrants, equal to the Average Share Price (as defined in the
Purchase Agreement) on the date on which the Company first becomes obligated to
pay the liquidated damages and (y) with respect to any subsequent installment of
Liquidated Damages Warrants, on the first Business Day of the month period for
which such installment is issuable. The value of such Liquidated Damages
Warrants shall be equal to their Black Scholes Warrant Value. Liquidated damages
shall be deemed to commence accruing on the day on which the event triggering
such liquidated damages occurs. The liquidated damages to be paid to the Holders
pursuant to this Section 2(d) shall cease to accrue on the day the Holders have
received notice from the Company regarding the reinstatement of effectiveness of
the Warrant Resale Registration Statement. The parties hereto agree that the
liquidated damages provided for in this Section 2(d) constitute a reasonable
estimate of the damages that will be suffered by the Holders by reason of the
failure of the Warrant Resale Registration Statement to remain effective in
accordance with this Agreement.

         (e) Delay Period.

                  The term "DELAY PERIOD" means, with respect to any obligation
to file any Resale Registration Statement or any Warrant Resale Registration
Statement or to keep any Resale Registration Statement, Warrant Resale
Registration Statement or Prospectus usable for resales pursuant to this Section
2, the shortest period of time determined in good faith by the Company's Board
of Directors to be necessary when there exist circumstances relating to a
material pending development, including, but not limited to, a pending or
contemplated material acquisition or merger or other material transaction or
event, which would require additional disclosure by the Company in such Resale
Registration Statement, Warrant Resale Registration Statement or Prospectus of
previously non-public material information which the Company determines in good
faith upon the advice of counsel that it has a bona fide business purpose for
keeping confidential and non-public and the non-disclosure of which in such
Resale Registration Statement, Warrant Resale Registration Statement or
Prospectus might cause such Resale Registration Statement, Warrant Resale
Registration Statement or Prospectus to fail to comply with applicable
disclosure requirements or if the Company becomes ineligible to use the
registration form on which the Resale Registration Statement or Warrant Resale
Registration Statement is filed and declared effective (such circumstances,
"DELAY CIRCUMSTANCES"). A Delay Period shall commence on and include the date
that the Company gives written notice (a "DELAY NOTICE") to the Holders that the
Prospectus is no longer usable as a result of such Delay Circumstances and shall
end on the date when the Holders are advised in writing by the Company that the
current Delay Period has terminated (it being understood that the Company shall
give such notice to all Holders promptly upon making the determination that the
Delay Period has ended). If as a result of the circumstances giving rise to the
Delay Period the Prospectus included in the Resale Registration Statement or the
Warrant Resale Registration Statement has been amended to comply with the
requirements of the Securities Act, the Company shall enclose such revised
Prospectus with the notice to the Holders advising them that the Delay Period
has terminated. Notwithstanding anything herein to the contrary the Company is
only entitled to three (3) Delay Periods having durations of not more than
thirty (30) days each during any consecutive 12 month period, and not to exceed
more than ninety (90) days in the aggregate in any consecutive 12 month period.
A Delay Period may not commence if a prior

                                       8
<PAGE>
Delay Period has terminated within the previous 30 days or if three Delay
Periods have occurred during the consecutive 12 month period ending on the date
that the Company gives notice that a Delay Period has commenced. The Company
covenants and agrees that it will not deliver a Delay Notice with respect to a
Delay Period unless the Company's employees, officers and directors and their
affiliates are also prohibited by the Company for the duration of the Delay
Period from effecting any public sales of shares of Common Stock beneficially
owned by them.

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

         (f) Notice.

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

                                       9
<PAGE>
3. REGISTRATION PROCEDURES.

         (a) Obligations of the Company.

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

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

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

                                       10
<PAGE>
                           may be, or as reasonably requested by the Holders of
                           a majority of Registrable Securities or Registrable
                           Liquidated Damages Warrants Securities, as the case
                           may be, and cause each Prospectus to be supplemented,
                           if so determined by the Company or requested by the
                           Commission, by any required prospectus supplement and
                           as so supplemented to be filed pursuant to Rule 424
                           (or any similar provision then in force), under the
                           Securities Act; respond as promptly as reasonably
                           possible to any comments received from the Commission
                           with respect to such Registration Statement, or any
                           amendment, post-effective amendment or supplement
                           relating thereto; and as promptly as reasonably
                           possible, upon request, provide the Holders true and
                           complete copies of all correspondence from and to the
                           Commission relating to such Registration Statement;
                           and comply in all material respects with the
                           provisions of the Securities Act, the Exchange Act
                           and the rules and regulations promulgated thereunder
                           applicable to it with respect to the disposition of
                           all Registrable Securities or Registrable Liquidated
                           Damages Warrant Securities covered by such
                           Registration Statement during the Effectiveness
                           Period in accordance with the intended method or
                           methods of distribution by the selling Holders
                           thereof described in this Agreement;

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

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

                                       11
<PAGE>
                           effective, (D) of the issuance or threatened issuance
                           by the Commission or any state securities authority
                           of any stop order suspending the effectiveness of
                           such Registration Statement or the qualification of
                           the Registrable Securities or Registrable Liquidated
                           Damages Warrant Securities in any jurisdiction
                           described in Section 3(a)(iii) or the initiation of
                           any proceedings for that purpose, (E) of the receipt
                           by the Company of any notification with respect to
                           the suspension of the qualification or exemption from
                           qualification of any of the Registrable Securities or
                           Registrable Liquidated Damages Warrant Securities for
                           sale in any jurisdiction or the initiation or
                           threatening of any proceeding for such purpose, (F)
                           of the happening of any event or the failure of any
                           event to occur or the discovery of any facts, during
                           the Effectiveness Period, which makes any statement
                           made in such Registration Statement or the related
                           Prospectus untrue in any material respect or which
                           causes such Registration Statement or Prospectus to
                           omit to state a material fact necessary in order to
                           make the statements therein, in the light of the
                           circumstances under which they were made, not
                           misleading and (G) when a Prospectus or Prospectus
                           Supplement or post-effective amendment to such
                           Registration Statement is proposed to be filed;

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

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

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

                                       12
<PAGE>
                  (viii)   as soon as practicable after the resolution of any
                           matter or event specified in Sections 3(a)(iv)(B),
                           3(a)(iv)(C), 3(a)(iv)(E) and 3(a)(iv)(F) (subject to
                           the proviso contained in Section 2(b)), prepare and
                           file with the Commission a supplement or
                           post-effective amendment to the applicable
                           Registration Statement or the related Prospectus or
                           any document incorporated therein by reference or
                           file any other required document, and provide revised
                           or supplemented Prospectuses to the Holders so that,
                           as thereafter delivered to the purchasers of the
                           Registrable Securities or Registrable Liquidated
                           Damages Warrant Securities, such Prospectus will not
                           include any untrue statement of a material fact or
                           omit to state a material fact necessary in order to
                           make the statements therein, in the light of the
                           circumstances under which they were made, not
                           misleading;

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

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

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

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

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

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

                                       13
<PAGE>
                           Statement under Section 2(a) or Section 2(c) hereof
                           or any amendment or supplement thereto without the
                           consent of the holders of a majority in interest of
                           the Registrable Securities or Registrable Liquidated
                           Damages Warrant Securities, as the case may be; and

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

         (b) Holders' Obligations.

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

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

                                       14
<PAGE>
                           Damages Warrant Securities of a seller who so fails
                           to furnish such information; provided that upon being
                           furnished with such information by a Holder,
                           including by any permitted transferee of Registrable
                           Securities or Registrable Liquidated Damages Warrant
                           Securities, whether before or after the Registration
                           Statement is declared effective, the Company shall as
                           promptly as reasonably practicable file a
                           post-effective amendment to the Registration
                           Statement, or a supplement to the Prospectus, for
                           purposes of including such Holder as a selling Holder
                           under the Registration Statement.

4. REGISTRATION EXPENSES.

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

                                       15
<PAGE>
5. INDEMNIFICATION.

         (a) Indemnification by the Company.

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

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

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

                                       16
<PAGE>
receiving notice of a Delay Period and prior to receiving Advice under Section
3(b)(i) that use of the Prospectus may be resumed or (ii) any untrue statement
of a material fact contained in any Registration Statement, Prospectus or
preliminary Prospectus or arising out of or based upon any omission of a
material fact required to be stated therein or necessary to make the statements
therein not misleading, to the extent, but only to the extent, that such untrue
statement or omission is finally judicially determined by a court of competent
jurisdiction to have been contained in any information so furnished in writing
by such Holder to the Company expressly for use in such Registration Statement
or Prospectus and to have been relied upon by the Company in the preparation of
such Registration Statement, Prospectus or preliminary Prospectus. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Company or any officer, director, agent or employee
of the Company. In no event will the liability of any selling Holder under this
Section 5(b) be greater in amount than the excess of the amount by which the
total price at which the Registrable Securities or Registrable Liquidated
Damages Warrant Securities sold by such Indemnifying Party and distributed to
the public pursuant to the applicable Registration Statement (net of all related
expenses) is over the amount of any damages which such Indemnifying Party has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission.

         (c) Conduct of Indemnification Proceedings.

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

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

                                       17
<PAGE>
                  All Losses (including any fees and expenses incurred in
connection with investigating or preparing to defend such action or proceeding)
will be paid to the Indemnified Party, as incurred, within ten (10) Business
Days of written notice thereof to the Indemnifying Party upon receipt of an
undertaking to repay such amount if it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder. The Indemnifying
Party will not consent to entry of any judgment or enter into any settlement or
otherwise seek to terminate any action or proceeding in which any Indemnified
Party is or could be a party and as to which indemnification or contribution
could be sought by such Indemnified Party under this Section 5, unless such
judgment, settlement or other termination includes, as an unconditional term
thereof, the giving by the claimant or plaintiff to such Indemnified Party of a
release, in form and substance reasonably satisfactory to the Indemnified Party,
from all liability in respect of such claim or litigation for which such
Indemnified Party would be entitled to indemnification hereunder and shall not
include a statement as to the admission of fault or culpability of the
Indemnified Party.

         (d) Contribution.

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

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

                                       18
<PAGE>
reason of such untrue or alleged untrue statement or omission or alleged
omission. No Person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) will be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation.

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

6. MISCELLANEOUS.

         (a) Reporting.

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

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

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

         (b) Remedies.

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

         (c) Amendments and Waivers.

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

                                       19
<PAGE>
                           consent of Holders of at least 75% of the
                           then-outstanding Registrable Securities and
                           Registrable Liquidated Damages Warrant Securities.

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

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

         (d) Notices.

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

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

                  (ii)     If to the Company, to:

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

                           with a copy to:

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

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

                                       20
<PAGE>
number and an image of the first page of such transmission, or (C) provided by a
courier or overnight courier service shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from a reputable overnight delivery
service.

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

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

         (f) Successors and Assigns.

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

         (g) Counterparts; Effectiveness.

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

         (h) Headings.

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

         (i) Governing Law.

                  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York as applied to agreements among
New York residents entered into and

                                       21
<PAGE>
to be performed entirely within New York, without giving effect to the
principles of conflict of laws thereof that would cause the application of the
laws of any other jurisdiction.

         (j) Jurisdiction; Consent to Service of Process.

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

         (k) WAIVER OF JURY TRIAL.

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

         (l) Severability.

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

                                       22
<PAGE>
portions thereof shall nevertheless remain in full force and effect and
enforceable to the extent they are valid, legal and enforceable, and no
provisions shall be deemed dependent upon any other covenant or provision unless
so expressed herein.

         (m) Entire Agreement.

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

         (n) No Strict Construction.

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

         (o) Third Party Beneficiaries.

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

         (p) Termination.

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

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

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

                                       23
<PAGE>
         (r) No Conflicting Agreements.

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

         (s) No Inferences.

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

                            [Signature page follows]

                                       24
<PAGE>
         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

                                DDi CORP.

                                By: /s/ Timothy J. Donnelly
                                   ------------------------------------
                                   Name: Timothy J. Donnelly
                                   Title: Vice President and General Counsel

                                     S-1
<PAGE>
                                CAIMAN PARTNERS, L.P.
                                By:    Caiman Capital GP, L.P., General Partner

                                By:    /s/ Brian R. Kahn
                                       ---------------------------------
                                Name:  Brian R. Kahn
                                Title: Managing Director

                                Address for Notice:

                                Kahn Capital Management LLC
                                c/o Brian Kahn
                                5506 Worsham Court
                                Windermere, FL 34786

                                      S-2
<PAGE>
                                GREYWOLF CAPITAL PARTNERS II LP

                                By:
                                       ---------------------------------
                                Name:   William Troy
                                Title:  Partner

                                Address for Notice:

                                      S-3
<PAGE>
                                QVT FUND LP
                                By:   QVT Associates GP LLC, its general partner

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

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

                                Address for Notice:

                                c/o QVT Financial LP
                                527 Madison Avenue, 8th Floor
                                New York, NY 10022

                                With a copy to:

                                Wilmer Cutler Pickering Hale and Dorr LLP
                                399 Park Avenue
                                New York, NY 10022
                                Attn: Knute Salhus

                                      S-4
<PAGE>
                                SANKATY CREDIT OPPORTUNITIES, L.P.

                                By:
                                       ---------------------------------
                                Name:    Jonathan S. Lavine
                                Title:   Managing Director

                                Sankaty High Yield Asset Partners, L.P.

                                By:
                                       ---------------------------------
                                Name:    Jonathan S. Lavine
                                Title:   Managing Director

                                Sankaty High Yield Partners II, L.P.

                                By:
                                       ---------------------------------
                                Name:    Jonathan S. Lavine
                                Title:   Managing Director

                                Sankaty High Yield Partners III, L.P.

                                By:
                                       ---------------------------------
                                Name:    Jonathan S. Lavine
                                Title:   Managing Director

                                Sankaty Prospect Credit Partners, L.P.

                                By:
                                       ---------------------------------
                                Name:    Jonathan S. Lavine
                                Title:   Managing Director

                                Address for Notice for all Purchasers
                                on this page:

                                Sankaty Advisors
                                111 Huntington Avenue
                                Boston, MA 02199

                                      S-5
<PAGE>
                                    EXHIBIT A

                                    AFFIDAVIT

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

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

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

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

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

Name of Beneficiary:   _________________________________________

By:                    _________________________________________
                        Authorized Representative

Name:
Title:

If more than one beneficial owner:

Name of other beneficial owner: ______________________________________________

By:                    _______________________________________________________
                             Authorized Representative

Name:
Title:

                                      A-1
<PAGE>
                                    EXHIBIT B

                              PLAN OF DISTRIBUTION

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

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

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

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

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

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

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

         (g) privately negotiated transactions;

         (h) short sales;

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

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

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

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

                                      B-1
<PAGE>
         (m) to cover hedging transactions (other than "short sales" as defined
in Rule 3b-3 under the Exchange Act) made pursuant to this prospectus;

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

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

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

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

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

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

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

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

                                      B-2
<PAGE>
Securities Act of 1933, and any discounts, concessions, commissions or fees
received by them and any profit on the resale of the securities sold by them may
be deemed to be underwriting discounts and commissions.

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

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

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

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

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

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

                                       B-3

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