Document:

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                                                                    EXHIBIT 4.11

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

Right to Purchase 10,250,000 Shares
of Common Stock of Vsource, Inc.

                                 VSOURCE, INC.
                         Common Stock Purchase Warrant

     VSOURCE, INC., a Delaware corporation (the "Company"), hereby certifies
that, for value received, BAPEF Investments XII Ltd. (the "Holder"), whose
address is c/o International Private Equity Services Ltd., P.O. Box 431, 13-15
Victoria Road, Guerney UK GY13ZD, is entitled, subject to the terms set forth
below, to purchase from the Company at any time or from time to time on or
before 5:00 p.m., Pacific Standard time, on July 12, 2006 (the "Expiration
Date") Ten Million Two Hundred Fifty Thousand (10,250,000) fully paid and
nonassessable shares of common stock of the Company (the "Common Stock") at a
purchase price per share equal to the Purchase Price, as defined herein. The
number of such shares of Common Stock and the Purchase Price are subject to
adjustment as provided in this Warrant. The initial purchase price for shares
subject to this Warrant will be 10/100 Dollars ($0.10) per share (the "Initial
Purchase Price"), and will be adjusted from time to time as provided herein.
The Initial Purchase Price or, if such price has been adjusted, the price per
share of Common Stock as last adjusted pursuant to the terms hereof is referred
to as the "Purchase Price" herein.

     1. EXERCISE OF WARRANT.

          (a) At any time while the Conversion Conditions have been satisfied,
     this Warrant may be exercised by the Holder hereof in full or in part at
     any time or from time to time until the Expiration Date by surrender of
     this Warrant and the subscription form annexed hereto (duly executed by the
     Holder), to the Company, and by making payment in cash or by certified or
     official bank check payable to the order of the Company, in the amount
     obtained by multiplying (i) the number of shares of Common Stock designated
     by the Holder in the subscription form by (ii) the Purchase Price then in
     effect. On any partial exercise the Company will forthwith issue and
     deliver to or upon the order of the Holder hereof a new

                                      -1-
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     Warrant of like tenor, in the name of the Holder hereof, providing in the
     aggregate on the face or faces thereof for the purchase of the number of
     shares of Common Stock for which such Warrant may still be exercised.

          (b) At any time while the Conversion Conditions have been satisfied,
     in lieu of exercising this Warrant as provided above, the Holder may elect
     to receive, without the payment by the Holder of any additional
     consideration, shares of Common Stock equal to the value of this Warrant
     (or the portion thereof being canceled) by surrender of this Warrant at the
     principal office of the Company together with the subscription form
     attached hereto indicating such election, in which event the Company shall
     issue to the holder hereof a number of Warrant Shares computed using the
     following formula:

                                           Y(A-B)
                                           ------
                                       X =   A

     Where:   X = The number of shares of Common Stock to be issued to the
              Holder pursuant to this net exercise;

              Y = The number of shares of Common Stock designated by the Holder
              in the subscription form;

              A = The then fair market value of one share of Common Stock as of
              the date the election is made;

              B = The Exercise Price (as adjusted to the date of the election).

     For purposes of this Section 1(b), the fair market value of one share of
     Common Stock as of a particular date shall be determined as follows: (i) if
     traded on a securities exchange or through the Nasdaq National Market or
     SmallCap System, the value shall be deemed to be the average of the closing
     prices of the securities on such exchange over the thirty (30) day period
     ending three (3) days prior to the net exercise election; (ii) if traded
     over-the-counter, the value shall be deemed to be the average of the
     closing prices over the thirty (30) day period ending three (3) days prior
     to the net exercise; and (iii) if there is no active public market, the
     value shall be the fair market value thereof, as determined in good faith
     by the Board of Directors of the Company.

          (c) For purposes of this Section 1, "Conversion Conditions" means
     either:

               (1) The Company has (A) adopted, had approved by its shareholders
          and has filed with the Secretary of State of Delaware (and there shall
          remain in effect) an amendment to the Company's Certificate of
          Incorporation to increase the authorized shares of the Company's
          Common Stock to at least 200 million shares and (B) obtained the
          approval of its shareholders of the issuance of shares of Common Stock

                                      -2-

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          upon the exercise of this Warrant pursuant to Sections 1(a) or 1(b)
          hereof, or

               (2) The Company has determined not to seek one or both of the
          approvals referred to in clause (1) above, and the Company has
          received an opinion of counsel, which has not been withdrawn, to the
          effect that (A) such approval that is not being sought is not required
          for the Company to issue shares of Common Stock upon the exercise of
          this Warrant pursuant to Sections 1(a) or 1(b) hereof, (B) such shares
          of Common Stock, upon issuance, will be fully paid, validly issued and
          nonassessable, and (C) such issuance would not violate the rules or
          regulations of any securities exchange or market on which any of the
          Company's securities is then listed, if any

The Company will give the Holder prompt written notice of (a) the satisfaction
of the Conversion Conditions, and (b) if at any time after satisfaction of the
Conversion Conditions pursuant to clause (2) above, the Conversion Conditions
cease to be satisfied.

          (d) In the event that the Conversion Conditions are not satisfied
     prior to February 15, 2002, or the Conversion Conditions fail to be
     satisfied at any time on or after February 15, 2002, then the Holder shall
     have the right, at any time after June 30, 2002, to require the Company to
     redeem all or any portion of this Warrant for a redemption price equal to
     the number of shares of Common Stock into which this Warrant is otherwise
     exercisable multiplied by the greater of (i) $0.30 (adjusted to reflect
     stock splits, stock dividends and similar transactions) or (ii) the fair
     market value of one share of Common Stock (as determined pursuant to
     Section 1(b) hereof)(the "Redemption Amount"); provided, that in no event
     shall the Redemption Amount exceed $0.35 per share (adjusted to reflect
     stock splits, stock dividends and similar transactions). In order to
     complete a redemption pursuant to this Section 1(d), the Holder shall
     submit to the Company an executed notice setting forth the number of shares
     subject to this Warrant to be redeemed (a "Redemption Notice") along with
     this Warrant. The Company shall pay the Holder the Redemption Amount, in
     cash, with respect to each share subject to this Warrant being redeemed
     pursuant to the Redemption Notice within ten (10) business days of the
     Company's receipt of a Redemption Notice.

     2. DELIVERY OF STOCK CERTIFICATES, ETC., ON EXERCISE. As soon as
practicable after the exercise of this Warrant, the Company will cause to be
issued in the name of and delivered to the Holder hereof a certificate for the
number of fully paid and nonassessable shares of Common Stock (or Other
Securities) to which the Holder shall be entitled on such exercise, plus, in
lieu of any fractional share to which the Holder would otherwise be entitled,
cash equal to such fraction multiplied by the then current fair market value as
determined pursuant to Section 1(b) above of one full share, together with any
other stock or other securities or property (including cash, where applicable)
to which the Holder is entitled upon such exercise. "Other Securities" shall
mean any stock (other than Common Stock) and other securities of the Company or
any other person (corporate or otherwise) which the Holder at any time shall be
entitled to receive, or shall have received, on the exercise of this Warrant, in
lieu of or in addition to Common Stock, or which at any time shall be issuable
or shall have

                                      -3-
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been issued in exchange for or in replacement of Common stock or Other
Securities pursuant to Sections 3 or 4.

     3. ADJUSTMENTS.

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

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

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

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     formula, "the total number of shares of Common Stock issued and
     outstanding" on a particular date shall include shares of Common Stock
     issuable upon conversion of stock or securities convertible into Common
     Stock and the exercise of warrants, options or rights for the purchase of
     Common Stock which are outstanding on such date.

          (d) Adjustments for Other Dividends and Distributions. In the event
     the Company at any time or from time to time after the date of this Warrant
     makes, or fixes a record date for the determination of holders of Common
     Stock entitled to receive, a dividend or other distribution payable in
     securities of the Company other than shares of Common Stock, then and in
     each such event, provision shall be made so that the Holder shall receive
     upon exercise hereof, in addition to the number of shares of Common Stock
     receivable thereupon, the amount of securities of the Company which it
     would have received had this Warrant been converted into Common Stock as of
     the date of such event and had it thereafter, during the period from the
     date of such event to and including the date of exercise, retained such
     securities receivable by it as aforesaid during such period, subject to all
     other adjustments called for during such period under this Section 3 with
     respect to the rights of the Holder.

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

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

                                      -5-

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     provisions of this Section 3 (including the number of shares deliverable
     upon exercise of this Warrant) shall continue to be applicable after that
     event and shall be as nearly equivalent to the provisions hereof as may be
     practicable.

          (g) Sale of Shares Below Conversion Price.

               (1) If at any time or from time to time after the date hereof
          the Company issues or sells, or is deemed by the express provisions
          of this Section 3(g) to have issued or sold, Additional Shares of
          Common Stock (as hereinafter defined), other than as a dividend or
          other distribution on any class of stock as provided in Section 2 and
          other than upon a subdivision or combination of shares of Common
          Stock as provided in Section 2, for an Effective Price (as
          hereinafter defined) less than the then existing Conversion Price,
          then and in each such case the then existing Conversion Price shall
          be reduced to such Effective Price.

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

               (3) For the purpose of the adjustment required under this
          Section 3(g), if the Company issues or sells any rights or options
          for the purchase of, or stock or other securities convertible into,
          Additional Shares of Common Stock (such convertible stock or
          securities being hereinafter referred to as "Convertible Securities")
          and if the Effective Price of such Additional Shares of Common Stock
          is less than the Conversion Price then in effect, then in each case
          the Company shall be deemed to have issued at the time of the
          issuance of such rights or options or Convertible Securities the
          maximum number of Additional Shares of Common Stock issuable upon
          exercise or conversion thereof and to have received as consideration
          for the issuance of such shares an amount equal to the total amount
          of the consideration, if any, received by the Company for the
          issuance of such rights or options or Convertible Securities, plus,
          in the case of such rights or options, the minimum amounts of
          consideration, if any, payable to the Company upon the exercise of
          such rights or options, plus, in the case of Convertible Securities,
          the minimum amounts of consideration, if any, payable to the Company
          (other than by cancellation of liabilities

                                      -6-
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          or obligations evidenced by such Convertible Securities) upon the
          conversion thereof. No further adjustment of the Conversion Price,
          adjusted upon the issuance of such rights, options or Convertible
          Securities, shall be made as a result of the actual issuance of
          Additional Shares of Common Stock on the exercise of any such rights
          or options or the conversion of any such Convertible Securities. If
          any such rights or options or the conversion privilege represented by
          any such Convertible Securities shall expire without having been
          exercised, the Conversion Price adjusted upon the issuance of such
          rights, options or Convertible Securities shall be readjusted to the
          Conversion Price which would have been in effect had an adjustment
          been made on the basis that the only Additional Shares of Common Stock
          so issued were the Additional Shares of Common Stock, if any, actually
          issued or sold on the exercise of such rights or options or rights of
          conversion of such Convertible Securities, and such Additional Shares
          of Common Stock, if any, were issued or sold for the consideration
          actually received by the Company upon such exercise, plus the
          consideration, if any, actually received by the Company for the
          granting for all such rights or options, whether or not exercised,
          plus the consideration received for issuing or selling the Convertible
          Securities actually converted, plus the consideration, if any,
          actually received by the Company (other than by cancellation of
          liabilities or obligations evidenced by such Convertible Securities)
          on the conversion of such Convertible Securities.

               (4) "Additional Shares of Common Stock" shall mean all shares of
          Common Stock issued (or deemed issued hereunder) by the Company after
          the date hereof, whether or not subsequently reacquired or retired by
          the Company, other than: (A) shares of Common Stock issued upon
          conversion or exchange of the Series 3-A Preferred Stock or any other
          options or warrants or convertible securities outstanding or issuable
          on the date hereof; (B) shares of Common Stock issued upon conversion
          or exchange of the Series 2-A Preferred Stock pursuant to Section 7 of
          the Certificate of Designation creating the Series 2-A Preferred
          Stock; (C) shares of Common Stock issued upon conversion or exchange
          of the Series 1-A Preferred Stock pursuant to Article 4, Section C.5
          of the Certificate of Incorporation; (D) shares of Common Stock
          issuable or issued to the directors, officers and employees of or
          consultants to the Company pursuant to a plan approved by the Board of
          Directors of the Company and (E) shares of Common Stock issuable or
          issued pursuant to equipment financing or leasing arrangements, and
          (F) shares of Common Stock issuable pursuant to the warrants, if any,
          which may be issued in connection with the Exchangeable Note and
          Warrant Purchase Agreement dated as of July 12, 2001, by and among the
          Company, NetCel360.com Ltd., NetCel360 Sdn Bhd, and the Purchasers
          named therein. The "Effective Price" of Additional Shares of Common
          Stock shall mean the quotient determined by dividing the total number
          of Additional Shares of Common Stock issued or sold, or deemed to have
          been issued or sold by the Company under this Section 3(g), into the
          aggregate consideration received, or deemed to have been

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          received by the Company for such issue under this Section 3(g), for
          such Additional Shares of Common Stock.

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

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

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

     6. NOTICES OF RECORD DATE, ETC. In the event of:

          (a) any taking by the Company of a record of the holders of any class
     of securities for the purpose of determining the holders thereof who are
     entitled to receive any dividend on, or any right to subscribe for,
     purchase or otherwise acquire any shares of stock of any class or any other
     securities or property, or to receive any other right, or

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

          (c) Any voluntary or involuntary dissolution, liquidation or
     winding-up of the

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     Company;

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

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

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

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

     10. NOTICES, ETC. All notices which are required to be given pursuant to
this Warrant

                                      -9-

<PAGE>
shall be in writing and shall be delivered by certified mail, return receipt
requested, first class postage prepaid, or sent by overnight express or
similarly recognized overnight delivery with receipt acknowledged or by
facsimile, with a copy thereof sent by one of the other means. Notices shall be
deemed to have been given at the time delivered and shall be addressed as
follows or to such other address as a party may designate by proper notice
hereunder.

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

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

     11. SECURITIES LAWS. By acceptance of this Warrant, the Holder represents
to the Company that the Holder is "accredited investor" within the meaning of
Rule 501 of Regulation D adopted under the Securities Act, as presently in
effect, or not a "U.S. person" within the meaning of Rule 902 adopted under the
Securities Act and is acquiring the Securities in an "offshore transaction" as
defined in Rule 902, that this Warrant is being acquired for the Holder's own
account and for the purpose of investment and not with a view to, or for sale in
connection with, the distribution thereof, nor with any present intention of
distributing or selling the Warrant or the Common Stock issuable upon exercise
of the Warrant, and that it is an investor in securities of companies in the
development stage and acknowledges that it can bear the economic risk of its
investment and has such knowledge and experience in financial or business
matters that it is capable of evaluating the merits and risks of the investment
in the shares subject to this Warrant. The Holder acknowledges and agrees that
this Warrant and the Common Stock issuable upon exercise of this Warrant (if
any) have not been (and at the time of acquisition by the Holder, will not have
been or will not be) registered under the Securities Act or under the securities
laws of any state, in reliance upon certain exemptive provisions of such
statutes. The Holder further recognizes and acknowledges that because this
Warrant and the Common Stock issuable upon exercise of this Warrant are
unregistered, they may not be eligible for resale, and may only be resold in the
future pursuant to an effective registration statement under the Securities Act
and any applicable state securities laws, or pursuant to a valid exemption from
such registration requirements and that the Holder must, therefore, bear the
economic risk of such investment indefinitely.

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

     THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT

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     BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
     APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR
     INVESTMENT AND MAY NOT BE RESOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
     AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
     ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY
     THAT SUCH DISPOSITION IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY
     APPLICABLE STATE SECURITIES LAWS.

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

     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed on
its behalf by one of its officers thereunto duly authorized as of July 12, 2001.

                                            VSOURCE, INC.

                                            By:          [SIGNATURE]
                                                -------------------------------

                                      -11-

<PAGE>
                              FORM OF SUBSCRIPTION

                                 VSOURCE, INC.

                   (To be signed only on exercise of Warrant)

TO: VSOURCE, INC.

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

     2. The undersigned Holder is hereby paying the aggregate purchase price
for such shares of Common Stock (the "Exercise Shares") (i) by the enclosed
certified or official bank check payable in United States dollars to the order
of the Company in the amount of $        , or (ii) by wire transfer of United
States funds to the account of the Company in the amount of $        , which
transfer has been made before or simultaneously with the delivery of this Form
of Subscription pursuant to the instructions of the Company, or (iii) electing
to exercise the attached Warrant for         shares purchasable under the
Warrant pursuant to the net exercise provisions of Section 1(b) of such Warrant.

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

Dated:

                                             -----------------------------------
                                                     Signature of Holder

                                      -12-Exhibit 10.1

                                  ALPHARX, INC.
                             2000 STOCK OPTION PLAN

1. Purposes.

     The  ALPHARX,  INC.  2000 STOCK  OPTION  PLAN (the  "Plan") is  intended to
provide the employees,  directors,  independent  contractors  and consultants of
AlphaRx, Inc. (the "Company") with an added incentive to continue their services
to the  Company and to induce them to exert  their  maximum  efforts  toward the
Company's  success.  By  thus  encouraging  employees,  directors,   independent
contractors and consultants and promoting their continued  association  with the
Company,  the Plan may be expected to benefit the Company and its  Shareholders.
The Plan  allows the  Company to grant  Incentive  Stock  options  ("ISOs")  (as
defined in Section 422(b) of the Internal  Revenue Code of 1986, as amended [the
"Code"]),  Non-Qualified  Stock Options  ("NQSOs") not intended to qualify under
Section  422(b)  of the  Code,  Stock  Appreciation  Rights  ("SARs")  and Stock
Depreciation Rights ("SDRs") (collectively the "Options").

2. Shares Subject to the Plan.

     The total number of shares of Common Stock of the Company,  $.001 par value
per share (the "Common Stock"), that may be subject to Options granted under the
Plan shall be 800,000 in the  aggregate,  subject to  adjustment  as provided in
Paragraph 8 of the Plan; however,  the grant of any NQSO to an employee together
with a tandem SAR or SDR shall only require one share of Common Stock  available
subject to the Plan to satisfy such joint Option. The Company shall at all times
while the Plan is in force reserve such number of shares of Common Stock as will
be sufficient to satisfy the  requirement of outstanding  Options  granted under
the Plan.  In the event  any  Option  granted  under  the Plan  shall  expire or
terminate for any reason  without  having been  exercised in full or shall cease
for any reason to be  exercisable in whole or in part,  the  unpurchased  shares
subject thereto shall again be available for granting of Options under the Plan.

3. Eligibility.

     ISO's  may be  granted  from  time to time  under  the  Plan to one or more
employees of the Company or of a "subsidiary" or "parent" of the Company, as the
quoted  terms are  defined  within  Section  424 of the Code.  An  Officer is an
employee for the above purposes.  Options, other than ISO's, may be granted from
time to time under the Plan to one or more  employees of the Company,  Officers,
members of the Board of  Directors,  independent  contractors,  consultants  and
other  individuals  who are not employees of, but are involved in the continuing
development  and success of the Company  and/or of a subsidiary  of the Company,
including persons who have previously been granted Options under the Plan.

                                       1

<PAGE>

4. Administration of the Plan.

     (a) The Plan shall be administered by the Board of Directors of the Company
as such  Board of  Directors  may be  composed  from  time to time or by a Stock
Option  Committee  (the  "Committee")  comprised  of at least two  disinterested
persons  (the term  "disinterested"  having the  meaning  ascribed to it by Rule
16b-3 of the Securities Exchange Act of 1934 [the "1934 Act"]) appointed by such
Board of Directors of the Company.  As and to the extent authorized by the Board
of Directors of the Company,  the Committee may exercise the power and authority
vested  in the Board of  Directors  under the  Plan.  Within  the  limits of the
express  provisions of the Plan, the Board of Directors or Committee  shall have
the authority, in its discretion,  to determine the individuals to whom, and the
time or times at which,  options shall be granted, the character of such Options
(whether  ISO,  NQSO  and/or SAR or SDR in tandem with a NQSO) and the number of
shares of Common Stock to be subject to each option,  and to interpret the Plan,
to prescribe,  amend and rescind rules and regulations  relating to the Plan, to
determine the terms and provisions of Option agreements that may be entered into
in  connection  with  Options  (which  need not be  identical),  subject  to the
limitation  that agreements  granting ISOs must be consistent with  requirements
for the ISOs being qualified as "incentive stock options" as provided in Section
422 of the Code, and to make all other determinations and take all other actions
necessary  or  advisable  for the  administration  of the Plan.  In making  such
determinations,  the Board of Directors  may take into account the nature of the
services rendered by such individuals, their present and potential contributions
to the Company's success,  and such other factors as the Board of Directors,  in
its discretion,  shall deem relevant. The Board of Directors'  determinations on
the matters referred to in this paragraph shall be conclusive.

     (b)  Notwithstanding   anything  contained  herein  to  the  contrary,  the
Committee  shall have the exclusive right to grant Options to persons subject to
Section 16 of the 1934 Act and set forth the terms and conditions thereof.  With
respect to persons subject to Section 16 of the 1934 Act, transactions under the
Plan are intended to comply with all applicable conditions of Rule 16b-3 for its
successors under the 1934 Act. To the extent any provision of the Plan or action
by the Board of Directors or  Committee  fails to so comply,  it shall be deemed
null and void, to the extent  permitted by law and deemed advisable by the Board
of Directors.

5. Terms of Options.

     Within the limits of the express  provisions of the Plan,  the Board or the
Committee  may grant  either  ISOs or NQSOs or SARs  and/or  SDRs in tandem with
NQSOs.  An ISO or an NQSO enables the optionee to purchase from the Company,  at
any time during a specified  exercise  period,  a specified  number of shares of
Common Stock at a specified price (the "Option Price"). The optionee, if granted
a SAR in tandem with a NQSO, may receive from the Company, in lieu of exercising
his  option to  purchase  shares  pursuant  to his NQSO,  at one of the  certain
specified  times during the  exercise  period of the NQSO as set by the Board or
the  Committee,  the  excess of the fair  market  value upon such  exercise  (as
determined in accordance with subparagraph (b) of this Paragraph 5) of one share
of Common  Stock over the  Option  Price per share  specified

                                       2

<PAGE>

upon grant of the  NQSO/SAR  multiplied  by the number of shares of Common Stock
covered by the SAR so exercised. The optionee, if qranted a SDR in tandem with a
NQSO, may receive from the Company at such date after the optionee's exercise of
the NQSO with which the SDR is in tandem and the SDR itself, which date shall be
determined by the Board or the Committee in its sole  discretion,  the excess of
the fair market value of one share of Common Stock upon the optionee's  exercise
of the NQSO with  which the SDR is in tandem  over the  greater  of the (i) fair
market  value on the date six months and one day after the exercise of such NQSO
and (ii) the option price paid on the exercise thereof, multiplied by the number
of shares of Common Stock  covered by the NQSO/SDR so  exercised.  The character
and terms of each Option granted under the Plan shall be determined by the Board
of  Directors  consistent  with  the  provisions  of  the  Plan,  including  the
following:

     (a) An Option  granted under the Plan must be granted  within 10 years from
the  date  the  Plan  is  adopted,  or the  date  the  Plan is  approved  by the
Shareholders of the Company, whichever is earlier.

     (b) The  Option  Price of the  shares of Common  Stock  subject to each ISO
shall not be less than the fair market  value of such shares of Common  Stock at
the time such ISO is granted.  Such fair market value shall be determined by the
Board of  Directors  and, if the shares of Common Stock are listed on a national
securities  exchange or traded on the  over-the-counter  market, the fair market
value shall be the closing  price on such  exchange,  or the mean of the closing
bid and asked  prices of the  shares  of  Common  Stock on the  over-the-counter
market, as reported by the National  Association of Securities Dealers Automated
Quotation System (NASDAQ),  the National  Association of Securities  Dealers OTC
Bulletin Board or the National  Quotation  Bureau,  Inc., as the case may be, on
the day on which the Option is granted  or, if there is no closing  price or bid
or asked  price on that day,  the  closing  price or mean of the closing bid and
asked  prices on the most  recent day  preceding  the day on which the Option is
granted  for which  such  prices  are  available.  If an ISO is  granted  to any
individual who,  immediately before the ISO is to be granted,  owns (directly or
through  attribution)  more than 10% of the total  combined  voting power of all
classes  of  capital  stock of the  Company  or a  subsidiary  or  parent of the
Company,  the  Option  Price of the shares of Common  Stock  subject to such ISO
shall not be less than 110% of the fair market  value per share of the shares of
Common Stock at the time such ISO is granted.

     (c) The Option Price of the shares of Common Stock  subject to an NQSO or a
SAR  or  SDR in  tandem  with a NQSO  granted  pursuant  to the  Plan  shall  be
determined by the Board of Directors or the Committee, in its sole discretion.

     (d) In no event shall any Option  granted under the Plan have an expiration
date later than 10 years from the date of its  grant,  and all  Options  granted
under the Plan shall be subject to earlier  termination as expressly provided in
Paragraph  6 hereof.  If an ISO is granted to any  individual  who,  immediately
before the ISO is granted,  owns (directly or through attribution) more that 10%
of the total  combined  voting  power of all  classes  of  capital  stock of the
Company or of a subsidiary or parent of the Company, such ISO shall

                                       3

<PAGE>

by its terms expire and shall not be  exercisable  after the  expiration of five
(5) years from the date of its grant.

     (e) An SAR may be exercised at any time after six months of the date of the
grant thereof during the exercise period of the NQSO with which it is granted in
tandem and prior to the exercise of such NQSO,  but only within the specified 10
business day period  referred to in subsection  (e)(3) of Rule 16b-3 of the 1934
Act (generally,  the 10 business days  immediately  following the publication of
the Company's quarterly financial  information).  The exercise of an SAR granted
in tandem with an NQSO shall be deemed to cancel  such number of shares  subject
to the  unexercised  Option as were subject to the exercised  SAR. An SDR may be
exercised at any time prior to the expiration date of the NQSO granted in tandem
with the SDR and after 6 months from the  exercise of the NQSO granted in tandem
with the SDR. The Board or the Committee has  discretion to determine and impose
conditions  on SDRs such as  setting  the time of payment at the date six months
and one day following  the date of exercise,  the date of the sale of the Common
Stock  received  upon the  exercise of the NQSO which was granted in tandem with
the SDR,  or some  other  date (but not later  than the  expiration  date of the
option),  and  reducing  the  amount of the  distribution  to take into  account
appreciation in the fair market value of the  aforementioned  Common Stock prior
to the  payment of the  distribution.  The Board or the  Committee  also has the
discretion to alter the terms of the SDRs if necessary to comply with Federal or
state  securities  law.  Amounts to be paid by the Company in connection with an
SAR or SDR may, in the Board's or the Committee's  discretion,  be made in cash,
Common Stock or a combination  thereof. An NQSO granted in tandem with an SAR or
SDR may not be exercised within six months of the grant thereof.

     (f) Unless  otherwise  provided in any Option  agreement under the Plan, an
Option granted under the Plan shall become exercisable,  in whole at any time or
in part from time to time,  but in no case may an Option (i) be  exercised as to
less than one  hundred  (100)  shares of  Common  Stock at any one time,  or the
remaining  shares of Common Stock covered by the Option if less than one hundred
(100),  and (ii) become fully  exercisable more than five years from the date of
its grant nor shall less than 20% of the Option become exercisable in any of the
first five years of the Option.

     (g) An Option  granted under the Plan shall be exercised by the delivery by
the holder  thereof to the Company at its principal  office (to the attention of
the  Secretary)  of written  notice of the number of full shares of Common Stock
with respect to which the Option is being  exercised,  accompanied by payment in
full, in cash or by certified check payable to the order of the Company,  of the
Option  Price of such  shares of Common  Stock,  or,  at the  discretion  of the
Committee or the Board,  by the delivery of shares of Common Stock having a fair
market value equal to the Option Price (provided, in order to qualify as an ISO,
more than one year shall have  passed  since the date of grant and one year from
the date of  exercise),  or at the option of the  Committee  or the Board,  by a
combination of cash and such shares (subject to the  restriction  above) held by
the employee  that have a fair market value  together  with such cash that shall
equal the Option  Price,  and, in the case of a NQSO,  at the  discretion of the
Committee  or Board by having  the  Company  withhold  from the shares of Common
Stock to be issued upon

                                       4

<PAGE>

exercise of the Option that number of shares having a fair market value equal to
the exercise price and/or the tax withholding  amount due, otherwise provide for
withholding as set forth in Paragraph  9(c) hereof,  or in the event an employee
is granted a NQSO in tandem with an SAR and/or SDR and desires to exercise  such
SAR or SDR, such written notice shall so state such intention.

     (h) The holder of an Option shall have none of the rights of a  Shareholder
with respect to the shares of Common Stock covered by such holder's Option until
such shares of Common  Stock shall be issued to such holder upon the exercise of
the Option.

     (i) An ISO granted  under the Plan and any NQSO granted under the Plan with
an exercise price below the fair market value at the date of grant or other NQSO
which the Board or  Committee  so  designates  at the time of grant shall not be
transferable otherwise than by will or the laws of descent and distribution, and
any ISO  granted  under the Plan may be  exercised  during the  lifetime  of the
holder  thereof only by the holder.  No Option  granted  under the Plan shall be
subject to execution, attachment or other process.

     (j) The aggregate  fair market value,  determined as of the time any ISO is
granted and in the manner provided for by subparagraph  (b) of this Paragraph 5,
of the shares of Common Stock with respect to which ISOs granted  under the Plan
are  exercisable for the first time during any calendar year and under incentive
stock  options  qualifying  as such in  accordance  with Section 422 of the Code
granted under any other Incentive Stock Option plan maintained by the Company or
its parent or subsidiary  corporations,  shall not exceed $100,000. Any grant of
Options in excess of such amount shall be deemed a grant of a NQSO.

6. Death or Termination of Employment.

     (a) If the  employment  of a  holder  of an ISO  under  the  Plan  shall be
terminated  voluntarily  by the employee or for cause,  such  holder's ISO shall
expire  thirty  (30) days  after  such  termination.  If such  employment  shall
terminate for any reason other than death, voluntary termination by the employee
or for cause, then such ISO may be exercised at any time within three (3) months
after such  termination,  subject to the provisions of subparagraph  (f) of this
Paragraph 6. For the purposes of this  subparagraph  (a), the  retirement  of an
individual  either  pursuant  to a pension  or  retirement  plan  adopted by the
Company or at the normal  retirement  date  prescribed  from time to time by the
Company  shall be deemed to be a  termination  of such  individual's  employment
other than voluntarily by the employee or for cause.

     (b) If the holder of an ISO under the Plan dies (i) while  employed  by the
Company or a subsidiary  or parent  corporation  or (ii) within three (3) months
after the termination of such holder's  employment other than voluntarily by the
employee or for cause,  such ISO may,  subject to the provisions of subparagraph
(f) of this  Paragraph  6, be  exercised by a legatee or legatees of such Option
under   such   individual's   last  will  or  by  such   individual's   personal
representatives   or  distributees  at  any  time  within  one  year  after  the
individual's death.

                                       5

<PAGE>

     (c) If the  holder of an ISO under the Plan  becomes  disabled  within  the
definition  of section  22(e)(3) of the Code while  employed by the Company or a
subsidiary or parent  corporation,  such ISO may,  subject to the  provisions of
subparagraph  (f) of this  Paragraph 6, be exercised at any time within one year
after such holder's termination of employment due to the disability.

     (d) An ISO may not be exercised  pursuant to this Paragraph 6 except to the
extent  that  the  holder  was  entitled  to  exercise  the  ISO at the  time of
termination of employment or death,  and in any event may not be exercised after
the original expiration date of the ISO.

7. Leave of Absence.

     For the  purposes  of the Plan,  an  individual  who is on military or sick
leave or other bona fide leave of absence  (such as temporary  employment by the
Government)  shall be considered as remaining in the employ of the Company or of
a subsidiary or parent corporation for ninety (90) days or such longer period as
such  individual's  right to reemployment is guaranteed  either by statute or by
contract.

8. Adjustment Upon Changes in Capitalization.

     (a) In the event that the outstanding  shares of Common Stock are hereafter
changed  by  reason  of  recapitalization,   reclassification,  stock  split-up,
combination  or  exchange  of  shares of  Common  Stock or the  like,  or by the
issuance  of  dividends  payable  in  shares  of Common  Stock,  an  appropriate
adjustment  shall be made by the Board of Directors,  as determined by the Board
of Directors,  in the aggregate number of shares of Common Stock available under
the Plan,  in the number of shares of Common  Stock  issuable  upon  exercise of
outstanding  Options,  and the  Option  Price  per  share.  In the  event of any
consolidation  or merger of the Company  with or into  another  company,  or the
conveyance of all or  substantially  all of the assets of the Company to another
company, each then outstanding Option shall upon exercise thereafter entitle the
holder  thereof to such number of shares of Common Stock or other  securities or
property to which a holder of shares of Common  Stock of the Company  would have
been entitled to upon such consolidation,  merger or conveyance; and in any such
case  appropriate  adjustment,  as  determined  by the Board of Directors of the
Company (or  successor  entity) shall be made as set forth above with respect to
any future changes in the capitalization of the Company or its successor entity.
In the event of the proposed  dissolution  or  liquidation  of the Company,  all
outstanding  Options  under  the  Plan  will  automatically  terminate,   unless
otherwise  provided by the Board of Directors  of the Company or any  authorized
committee thereof. Notwithstanding anything contained herein to the contrary, no
adjustment in the aggregate number of shares of Common Stock available under the
Plan (irrespective of any adjustments required in the number of shares of Common
Stock issuable upon exercise of outstanding  Options) or in the Option Price per
share,  provided the Option Price in any option  agreement issued under the Plan
is the initial  public  offering price of the Company's  Common Stock,  shall be
required,  except as otherwise  provided in any Option Agreement  evidencing the
Options, in the event of a stock split or

                                       6

<PAGE>

other  re-capitalization  of the  Company,  as  described  above,  prior  to the
consummation of an initial public offering by the Company.

     (b) Any  adjustment  in the number of shares of Common  Stock  shall  apply
proportionately  to  only  the  unexercised   portion  of  the  Options  granted
hereunder.  If  fractions  of shares of Common  Stock would result from any such
adjustment,  the  adjustment  shall be revised to the next lower whole number of
shares of Common Stock.

9. Further Conditions of Exercise.

     (a) Unless the shares of Common  Stock  issuable  upon the  exercise  of an
Option  under the Plan have been  registered  with the  Securities  and Exchange
Commission  pursuant to the  Securities  Act of 1933,  as amended,  prior to the
exercise  of the  Option,  the  notice of  exercise  shall be  accompanied  by a
representation  or  agreement  of the  individual  exercising  the Option to the
Company to the effect that such shares of Common  Stock are being  acquired  for
investment  and not with a view to the  resale or  distribution  thereof or such
other documentation as may be required by the Company,  unless in the opinion of
counsel to the Company such  representation,  agreement or  documentation is not
necessary to comply with said Act.

     (b) The  Company  shall not be  obligated  to deliver  any shares of Common
Stock  until  they have been  listed on each  securities  exchange  on which the
shares of Common Stock may then be listed or until there has been  qualification
under or compliance with such state or federal laws, rules or regulations as the
Company may deem applicable.  The Company shall use reasonable efforts to obtain
such listing, qualification and compliance.

     (c) The Board or Committee may make such  provisions and take such steps as
it may deem necessary or appropriate  for the  withholding of any taxes that the
Company is  required by any law or  regulation  of any  governmental  authority,
whether federal,  state or local, domestic or foreign, to withhold in connection
with  the  exercise  of any  Option,  including,  but not  limited  to,  (i) the
withholding  of payment of all or any portion of such  Option  and/or SAR and/or
SDR until the holder  reimburses  the  Company  for the  amount  the  Company is
required to withhold with respect to such taxes,  or (ii) the  cancelling of any
number of shares of Common Stock  issuable  upon  exercise of such Option and/or
SAR and/or SDR in an amount  sufficient  to reimburse the Company for the amount
it is required to so withhold,  (iii) the selling of any  property  contingently
credited by the Company for the purpose of exercising  such Option,  in order to
withhold or reimburse  the Company for the amount it is required to so withhold,
or (iv) withholding the amount due from such employee's wages if the employee is
employed by the Company or any subsidiary thereof.

10. Termination, Modification and Amendment.

     The Plan  (but  not  Options  previously  granted  under  the  Plan)  shall
terminate  ten (10) years from the  earliest of the date of its  adoption by the
Board of Directors,  or the date the Plan is approved by the Shareholders of the
Company,  or such date of

                                       7

<PAGE>

termination,  as  hereinafter  provided,  and no Option  shall be granted  after
termination of the Plan.

     The Plan may from time to time be  terminated,  modified  or amended by the
affirmative  vote of the  holders of a  majority  of the  outstanding  shares of
capital stock of the Company entitled to vote thereon.

     The Board of  Directors  of the Company may at any time,  prior to ten (10)
years from the earlier of the date of the  adoption of the Plan by such Board of
Directors or the date the Plan is approved by the  Shareholders,  terminate  the
Plan or from time to time make such  modifications  or amendments of the Plan as
it may deem advisable; provided, however, that the Board of Directors shall not,
without  approval  by the  affirmative  vote of the holders of a majority of the
outstanding  shares of capital  stock of the Company  entitled to vote  thereon,
increase  (except as provided by  Paragraph  8) the maximum  number of shares of
Common  Stock as to which  Options  may be  granted  under the Plan,  materially
change the standards of  eligibility  under the Plan or materially  increase the
benefits which may accrue to  participants  under the Plan. Any amendment to the
Plan which,  in the opinion of counsel to the Company,  will be deemed to result
in the  adoption  of a new Plan,  will not be  effective  until  approved by the
affirmative  vote of the  holders of a  majority  of the  outstanding  shares of
capital stock of the Company entitled to vote thereon.

     No termination,  modification or amendment of the Plan may adversely affect
the rights under any outstanding Option without the consent of the individual to
whom such Option shall have been previously granted.

11. Effective Date of the Plan.

     The Plan shall become  effective upon adoption by the Board of Directors of
the Company.  The Plan shall be subject to approval by the  affirmative  vote of
the  holders of a majority  of the  outstanding  shares of capital  stock of the
Company entitled to vote thereon within one year before or after adoption of the
Plan by the Board of Directors.

12. Not a Contract of Employment.

     Nothing contained in the Plan or in any option agreement  executed pursuant
hereto shall be deemed to confer upon any individual to whom an Option is or may
be granted  hereunder  any right to remain in the employ of the  Company or of a
subsidiary  or  parent  of the  Company  or in any way  limit  the  right of the
Company,  or of any parent or subsidiary thereof, to terminate the employment of
any employee.

13. Other Compensation Plans.

The adoption of the Plan shall not affect any other stock option plan, incentive
plan or any other  compensation plan in effect for the employees of the Company,
nor shall the Plan  preclude  the Company  from  establishing  any other form of
stock option plan,  incentive plan or any other  compensation plan for employees
of the Company.

                                       8

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