<SUBMISSION>
<ACCESSION-NUMBER>0001181431-08-063011
<TYPE>4/A
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20081001
<FILING-DATE>20081119
<DATE-OF-FILING-DATE-CHANGE>20081119
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>CAPSOURCE FINANCIAL INC
<CIK>0001173359
<ASSIGNED-SIC>7350
<IRS-NUMBER>841334453
<STATE-OF-INCORPORATION>CO
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>2305 CANYON BLVD
<STREET2>STE 103
<CITY>BOULDER
<STATE>CO
<ZIP>80302
<PHONE>3032450515
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2305 CANYON BLVD STE 103
<CITY>BOULDER
<STATE>CO
<ZIP>80302
</MAIL-ADDRESS>
</ISSUER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>WHITEBOX INTERMARKET PARTNERS LP
<CIK>0001296973
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>4/A
<ACT>34
<FILE-NUMBER>001-31730
<FILM-NUMBER>081202145
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>TRIDENT CHAMBERS
<STREET2>PO BOX 146 WATERFRONT
<CITY>WICKHAMS CAY
<STATE>D8
<ZIP>00000
<PHONE>2844942434
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>TRIDENT CHAMBERS
<STREET2>PO BOX 146 WATERFRONT
<CITY>WICKHAMS CAY
<STATE>D8
<ZIP>00000
</MAIL-ADDRESS>
</REPORTING-OWNER>
<DOCUMENT>
<TYPE>4/A
<SEQUENCE>1
<FILENAME>rrd224132.xml
<DESCRIPTION>FORM 4/A
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4/A</documentType>

    <periodOfReport>2008-10-01</periodOfReport>

    <dateOfOriginalSubmission>2008-11-18</dateOfOriginalSubmission>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0001173359</issuerCik>
        <issuerName>CAPSOURCE FINANCIAL INC</issuerName>
        <issuerTradingSymbol>CPSO</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001296973</rptOwnerCik>
            <rptOwnerName>WHITEBOX INTERMARKET PARTNERS LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>3033 EXCELSIOR BOULEVARD, SUITE 300</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>MINNEAPOLIS</rptOwnerCity>
            <rptOwnerState>MN</rptOwnerState>
            <rptOwnerZipCode>55416</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>1</isOther>
            <otherText>See Remarks below</otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <transactionDate>
                <value>2008-11-12</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>2820000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Common Stock Warrant</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>.90</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-11-12</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>2500000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2006-05-01</value>
            </exerciseDate>
            <expirationDate>
                <value>2011-05-01</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>2500000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Warrants to purchase Common Stock</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>.90</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-11-12</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>375000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2006-10-30</value>
            </exerciseDate>
            <expirationDate>
                <value>2011-10-30</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>375000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The Common Stock and Warrants were sold together in a private transaction.</footnote>
        <footnote id="F2">The Common Stock and the Warrants were sold for an aggregate sale price of $187,500.</footnote>
        <footnote id="F3">The general partner of the reporting person is Whitebox Intermarket Advisors, LLC (&quot;WIA&quot;), which manages accounts for the benefit of the reporting person, Whitebox Intermarket Fund, L.P. (&quot;WIFLP&quot;) and Whitebox Intermarket Fund, Ltd. (&quot;WIFLTD&quot;).  The managing member and controlling owner of WIA is Whitebox Advisors, LLC (&quot;Whitebox Advisors&quot;).</footnote>
        <footnote id="F4">Based on the relationships described herein, these entities may be deemed to constitute a group (also see &quot;Remarks&quot; section herein) for purposes of Rule 13d-5(b)(1) under the Securities and Exchange Act of 1934.  The filing of this statement shall not be construed as an admission that the reporting person, Whitebox Advisors, WIA, WIFLP and WIFLTD are a group or have agreed to act as a group or that any such entity other than the reporting person has a reportable interest in the Issuer's Common Stock for Section 16 purposes.  Each of the identified entities disclaim beneficial ownership of such shares of common stock except to the extent of their pecuniary interest in such shares.</footnote>
    </footnotes>

    <remarks>The reporting person is a member of a &quot;group&quot; for Section 16 reporting purposes with one other shareholder of the Issuer, Pandora Select Partners, L.P.
This amendment is filed to indicate that the reporting person is no longer subject to Section 16 with respect to securities of the Issuer, and to clarify the transaction date and prices at which the reported securities were sold and statements made in footnotes.</remarks>

    <ownerSignature>
        <signatureName>/s/ Jonathan D. Wood, Chief Operating Officer, General Partner, Whitebox Intermarket Advisors, LLC for WHITEBOX INTERMARKET PARTNERS, L.P.</signatureName>
        <signatureDate>2008-11-19</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
