Document:

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                                                                    EXHIBIT 10.7

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED.  THESE
SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID
ACT OR LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH
REGISTRATION IS NOT REQUIRED.

                             DIGITALWORK.COM, INC.

                          STOCK SUBSCRIPTION WARRANT

                                               December 22, 1999

1.   General.
     -------

          (a)  THIS CERTIFIES that, for value received, Dell USA, L.P. ("Dell"),
or assigns, is entitled to subscribe for and purchase from DIGITALWORK.COM,
INC., a Delaware corporation (the "Corporation"), at any time or from time to
time during the period (the "Exercise Period") commencing with the date hereof
and ending on the second anniversary of the date hereof, on the terms and
subject to the provisions hereinafter set forth, up to 150,000 of shares
(subject to adjustment as provided herein) of fully paid and non-assessable
shares of Series D Preferred Stock, $0.005 par value, of the Corporation, at a
price per share (the "Warrant Price") of $8.36 or in the event the Preferred
Stock shall prior to exercise or exchange of this Warrant have been converted
into Common Stock, $0.005 par value (the "Common Stock") of the Corporation as a
result of an automatic conversion event (as defined in Article IV, Section 3.2
of the Amendment of the Amended and Restated Certificate of Incorporation of the
Corporation), that number of shares of Common Stock into which such number of
shares of Preferred Stock is converted ("Mandatory Conversion Event") at any
time or from time to time during the Exercise Period.

The shares of capital stock of the Corporation issuable upon exercise or
exchange of this Warrant are sometimes hereinafter referred to as the "Warrant
Shares," and, in connection therewith, all references herein to Warrant Shares
shall mean Preferred Stock until the occurrence of a Mandatory Conversion Event,
and upon and at all times after, the occurrence of a Mandatory Conversion Event,
shall mean Common Stock.

2.   Exercise of Warrant.
     -------------------

          The rights represented by this Warrant may be exercised by the holder
hereof in whole or in part, at any time or from time to time during the Exercise
Period, by the surrender of
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this Warrant (properly endorsed) at the office of the Corporation at 230 West
Monroe Street, Suite 1950, Chicago, Illinois 60606, or at such other agency or
office of the Corporation in the United States of America as it may designate by
notice in writing to the holder hereof at the address of such holder appearing
on the books of the Corporation, and by payment (either in cash, by check, by
cancellation of indebtedness and/or in shares of capital stock of the
Corporation valued at Fair Market Value (as hereinafter defined) on the date of
such exercise) to the Corporation of the Warrant Price for each Warrant Share
being purchased. In the event of the exercise of the rights represented by this
Warrant, a certificate or certificates for the Warrant Shares so purchased,
registered in the name of the holder, and if this Warrant shall not have been
exercised for all of the Warrant Shares, a new Warrant, registered in the name
of the holder hereof, of like tenor to this Warrant, shall be delivered to the
holder hereof within a reasonable time, not exceeding ten days, after the rights
represented by this Warrant shall have been so exercised. The person in whose
name any certificate for Warrant Shares 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 Warrant was surrendered and payment of the
Warrant Price and any applicable taxes was made, irrespective of the date of
delivery of such certificate, except that, if the date of such surrender and
payment is a date when the stock transfer books of the Corporation are closed,
such person shall be deemed to have become the holder of such shares at the
close of business on the next succeeding date on which the stock transfer books
are open.

3.   Exchange of Warrant.
     -------------------
          (a)  In addition to, and independent of, the rights of the holder of
this Warrant set forth in Section 2 hereof, the holder hereof may at any time or
from time to time elect to receive, without the payment by the holder of any
additional consideration, that number of Warrant Shares determined as
hereinafter provided in this Section 3 by the surrender of this Warrant or any
portion hereof to the Corporation, accompanied by an executed Notice of Exchange
in substantially the form thereof attached hereto (the "Net Issue Election").
Thereupon, the Corporation shall issue to the holder hereof such number of fully
paid and nonassessable Warrant Shares as is computed using the following
formula:

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

where X =  the number of Warrant Shares to be issued to the holder pursuant to
           this Section 3.

      Y =  the number of Warrant Shares covered by this Warrant in respect of
           which the Net Issue Election is made pursuant to this Section 3.

      A =  the Fair Market Value (as hereinafter defined) of one Warrant Share
           determined at the time the Net Issue Election is made pursuant to
           this Section 3 (the "Determination Date").

      B =  the Warrant Price in effect under this Warrant at the time the Net
           Issue Election is made pursuant to this Section 3.

                                       2
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For purposes of the above calculation, "Fair Market Value" of one Warrant Share
as of the Determination Date shall mean:

               (i)   if as a result of a Mandatory Conversion Event the Warrant
Shares mean Common Stock as set forth in Section 1, then (A) if the Common Stock
of the Corporation is not then traded on a national securities exchange, the
average of the closing prices quoted on the National Association of Securities
Dealers, Inc. Automated Quotation National Market System, if applicable, or the
average of the last bid and asked prices of the Common Stock quoted in the over-
the-counter-market or (B) if the Common Stock is then traded on a national
securities exchange, the average of the high and low prices of the Common Stock
listed on the principal national securities exchange on which the Common Stock
is so traded, in each case for the twenty (20) trading days immediately
preceding the Determination Date;

               (ii)  in the event of a Warrant Exchange in connection with a
Corporate Transaction, the value per share of Common Stock received or
receivable by each holder thereof (assuming, in the case of a sale of assets,
the Corporation is liquidated immediately following such sale and the
consideration paid to the Corporation is immediately distributed to its
stockholders); and

               (iii) in all other circumstances, the fair market value per share
of Common Stock as determined by (i) the Corporation's Board of Directors in
good faith after taking into consideration all factors it deems appropriate,
including, without limitation, recent sale and offer prices of the capital stock
of the Corporation in private transactions negotiated at arm's length, or (ii) a
nationally recognized independent investment banking firm jointly selected by
the Corporation and the holder of this Warrant or, if such selection cannot be
made within five business days after delivery of the Notice of Exchange referred
to above, by a nationally recognized independent investment banking firm
selected by the American Arbitration Association then obtaining, at the sole
discretion of AOL.

The closing of any Warrant Exchange shall take place at the offices of the
Corporation on the date specified in the Notice of Exchange (the "Exchange
Date"), which shall be not less than five and not more than 30 days after the
delivery of such Notice.  At such closing, the Corporation shall issue and
deliver to the holder or its designee a certificate or certificates for the
Warrant Shares to be issued upon such Warrant Exchange, registered in the name
of the holder or such designee, and if such Warrant Exchange shall not have been
for all Warrant Shares, a new Warrant, registered in the name of the holder, of
like tenor to this Warrant for the number of shares still subject to this
Warrant following such Warrant Exchange.

4.   Adjustment of Warrant Price.
     ---------------------------

          (a)  The Warrant Price and number of Warrant Shares shall be subject
to adjustment from time to time as follows:

               (i)  If, at any time during the Exercise Period, the number of
shares of Common Stock outstanding is increased by a stock dividend payable in
shares of Common

                                       3
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Stock or by a subdivision or split-up of shares of Common Stock, then, following
the record date fixed for the determination of holders of Common Stock entitled
to receive such stock dividend, subdivision or split-up, the Warrant Price shall
be appropriately decreased and the number of shares of Preferred Stock issuable
upon the exercise of this Warrant or the Common Stock issuable upon conversion
of the Preferred Stock shall be appropriately increased, in each case in
proportion to such increase in outstanding shares.

               (ii)  If, at any time during the Exercise Period, the number of
shares of Common Stock outstanding is decreased by a combination of the
outstanding shares of Common Stock, then, following the record date for such
combination, the Warrant Price shall be appropriately increased and the number
of shares of Preferred Stock issuable upon the exercise of this Warrant or the
Common Stock issuable upon conversion of the Preferred Stock shall be
appropriately decreased, in each case, in proportion to such decrease in
outstanding shares.

               (iii) All calculations under this Section 4 shall be made to the
nearest one tenth (1/10) of a cent or to the nearest one tenth (1/10) of a
share, as the case may be.

          (b)  Whenever the Warrant Price shall be adjusted as provided in this
Section 4 the Corporation shall forthwith file, at the office of the Corporation
or any transfer agent designated by the Corporation for the Common Stock, a
statement, signed by its chief financial officer, showing in detail the facts
requiring such adjustment and the adjusted Warrant Price.  The Corporation shall
also cause a copy of such statement to be sent by first-class certified mail,
return receipt requested, postage prepaid, to each holder of a Warrant at his or
its address appearing on the Corporation's records.  Where appropriate, such
copy may be given in advance and may be included as part of a notice required to
be mailed under the provisions set forth immediately below.

          (c)  In the event the Corporation shall propose to take any action of
the types described in Section 4(a)(i) or (ii) or Section 11, the Corporation
shall give notice to each holder of a Warrant in the manner set forth herein,
which notice shall specify the record date, if any, with respect to any such
action and the date on which such action is to take place.  Such notice shall
also set forth such facts with respect thereto as shall be reasonably necessary
to indicate the effect of such action (to the extent such effect may be known at
the date of such notice) on the Warrant Price then in effect and the number,
kind or class of shares or other securities or property which shall be delivered
or purchasable upon the occurrence of such action or deliverable upon exercise
of this Warrant.  In the case of any action which would require the fixing of a
record date, such notice shall be given at least 20 days prior to the date so
fixed, and in case of all other action, such notice shall be given at least 30
days prior to the taking of such proposed action.  Failure to give such notice,
or any defect therein, shall not affect the legality or validity of any such
action.

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5.   Covenants as to Preferred Stock.
     --------------------------------

               (a)  The Corporation covenants and agrees that all shares of
Preferred Stock which may be issued upon the exercise of the rights represented
by this Warrant, and all shares of Common Stock which may be issued upon the
conversion of the Preferred Stock will, upon issuance, be validly issued, fully
paid and non-assessable and free from all taxes, liens and charges with respect
to the issuance thereof. The Corporation further covenants and agrees that the
Corporation will from time to time take all such action as may be requisite to
assure that the stated or par value per share of the Preferred Stock and the
Common Stock is at all times equal to or less than the then effective Warrant
Price per share of Preferred Stock issuable upon exercise of this Warrant. The
Corporation further covenants and agrees that the Corporation will at all times
have authorized and reserved, free from preemptive rights, a sufficient number
of (a) shares of its Preferred Stock to provide for the exercise of the rights
represented by this Warrant and (b) shares of Common Stock to provide for the
conversion of the Preferred Stock issuable upon exercise of this Warrant. The
Corporation further covenants and agrees that if any shares of capital stock to
be reserved for the purpose of the issuance of shares of Preferred Stock upon
the exercise of this Warrant require registration with or approval of any
governmental authority under any Federal or state law before such shares may be
validly issued or delivered upon exercise, then the Corporation will in good
faith and expeditiously as possible endeavor to secure such registration or
approval, as the case may be. If and so long as the Preferred Stock or Common
Stock issuable upon the exercise of the rights represented by this Warrant is
listed on any national securities exchange, the Corporation will, if permitted
by the rules of such exchange, list and keep listed on such exchange, upon
official notice of issuance, all shares of such capital stock.

               (b)  The Corporation further covenants and agrees that the holder
hereof will be entitled to the benefits of any adjustment prior to the exercise
hereof pursuant to any anti-dilution protection and any notice of adjustment of
the conversion price provided to the holders of Preferred Stock in accordance
with the Corporation's Certificate of Incorporation.

6.   No Shareholder Rights.
     ---------------------

               This Warrant shall not entitle the holder hereof to any voting
rights or other rights as a shareholder of the Corporation.

7.   Restrictions on Transfer.
     ------------------------

               The holder of this Warrant acknowledges that neither this Warrant
nor the Warrant Shares have been registered under the Securities Act of 1933, as
amended (the "Securities Act") and the holder of this Warrant agrees that no
sale, transfer, assignment, hypothecation or other disposition of this Warrant
or the Warrant Shares shall be made in the absence of (a) current registration
statement under the Securities Act as to this Warrant or the Warrant Shares and
the registration or qualification of this Warrant or the Warrant Shares under
any applicable state securities laws is then in effect or (ii) an opinion of
counsel reasonably satisfactory to the Corporation to the effect that such
registration or qualification is not required.

                                       5
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Each certificate or other instrument for Warrant Shares issued upon exercise of
this Warrant shall, if required under the Securities Act or the rules
promulgated thereunder, be imprinted with a legend substantially to the
foregoing effect.

                                       6
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8.   Rights of the Holder.
     --------------------

          (a)  Anything contained herein to the contrary notwithstanding, the
     shares of Preferred Stock issuable upon exercise of this Warrant and the
     Common Stock issuable upon conversion of such shares of Preferred Stock
     shall be entitled to all rights and benefits accorded thereto in any
     investor rights or shareholders or similar agreement between and/or among
     the Corporation and the holders of the Preferred Stock, and the Corporation
     shall take all actions and shall execute and deliver all documents
     necessary or desirable, including any amendments to such agreement(s) to
     make the holder a party thereto.

          (b)  Anything contained herein to the contrary notwithstanding, the
     holder of this Warrant shall be entitled to the rights set forth on
     Exhibit A hereto.
     ---------

 9.  Transfer of Warrant; Amendment.
     ------------------------------

     Subject to the restriction set forth in Section 7, this Warrant and all
rights hereunder are transferable, in whole, or in part, at the agency or office
of the Corporation referred to in Section 2, by the holder hereof in person or
by duly authorized attorney, upon surrender of this Warrant properly endorsed;
provided, however, that prior to the IPO, transfers by any holder of this
--------  -------
Warrant to a person or entity other than an affiliate of such holder shall
require the prior written consent of the Corporation.  Each taker and holder of
this Warrant, by taking or holding the same, consents and agrees that this
Warrant, when endorsed, in blank, shall be deemed negotiable, and, when so
endorsed the holder hereof may be treated by the Corporation and all other
persons dealing with this Warrant as the absolute owner hereof for any purposes
and as the person entitled to exercise the rights represented by this Warrant,
or to the transfer hereof on the books of the Corporation, any notice to the
contrary notwithstanding; but until each transfer on such books, the Corporation
may treat the registered holder hereof as the owner hereof for all purposes.

10.  Reorganizations, Etc.  In case, at any time during the Exercise Period, of
     --------------------
any capital reorganization, of any reclassification of the stock of the
Corporation (other than a change in par value or from par value to no par value
or from no par value to par value or as a result of a stock dividend or
subdivision, split-up or combination of shares), or the consolidation or merger
of the Corporation with or into another corporation (other than a consolidation
or merger in which the Corporation is the continuing operation and which does
not result in any change in the Common Stock) or of the sale of all or
substantially all the properties and assets of the Corporation as an entirety to
any other corporation, this Warrant shall, after such reorganization,
reclassification, consolidation, merger or sale, be exercisable for the kind and
number of shares of stock or other

                                       7
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securities or property of the Corporation or of the corporation resulting from
such consolidation or surviving such merger or to which such properties and
assets shall have been sold to which such holder would have been entitled if he
had held the Preferred Stock issuable upon the exercise of this Warrant or the
Common Stock issuable upon conversion of the Preferred Stock immediately prior
to such reorganization, reclassification, consolidation, merger or sale. In any
such reorganization or other action or transaction described above, appropriate
provision shall be made with respect to the rights and interests of the holder
of this Warrant to the end that the provisions hereof (including, without
limitation, provisions for adjustments of the Warrant Price and of the number of
shares purchasable and receivable upon the exercise of this Warrant) shall
thereafter be applicable, as nearly as may be, in relation to any shares of
stock, securities or assets thereafter deliverable upon the exercise hereof.

11.  Lost, Stolen, Mutilated or Destroyed Warrant.  If this Warrant is lost,
     --------------------------------------------
stolen, mutilated or destroyed, the Corporation may, on such terms as to
indemnity or otherwise as it may in its discretion impose (which shall, in the
case of a mutilated Warrant, include the surrender thereof), issue a new Warrant
of like denomination and tenor as the Warrant so lost, stolen, mutilated or
destroyed.  Any such new Warrant shall constitute an original contractual
obligation of the Corporation, whether or not the allegedly lost, stolen,
mutilated or destroyed Warrant shall be at any time enforceable by anyone.

12.  Modification and Waiver.  This Warrant and any provision hereof may be
     -----------------------
changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of the same is sought.

13.  Notices.  All notices, advices and communications to be given or otherwise
     -------
made to any party to this Agreement shall be deemed to be sufficient if
contained in a written instrument delivered in person or by telecopier or duly
sent by first class registered or certified mail, return receipt requested,
postage prepaid, or by overnight courier, or by electronic mail, with a copy
thereof to be sent by mail (as aforesaid) within 24 hours of such electronic
mail, addressed to such party at the address set forth below or at such other
address as may hereafter be designated in writing by the addressee to the
addresser listing all parties:

          (a)  If to the Corporation, to:

               DigitalWork.com, Inc.
               230 West Monroe Street, Suite 1950
               Chicago, Illinois  60606
               Attention:  Craig Terrill, President
               Telecopier:
               e-mail address:
                                      and

          (b)  If to Dell as follows:

                                       8
<PAGE>

               Paul Legris
               Dell Ventures
               c/o Dell Computer Corporation
               Mail Stop 8066
               One Dell Way
               Round Rock, Texas 78682

               With a copy to:
               Thomas A. Welch, Jr.
               Vice President and Deputy General Counsel
               Legal Department
               Dell Computer Corporation
               Mail Stop 8033
               One Dell Way
               Round Rock, Texas 78682

Or to such other address as the party to whom notice is to be given may have
furnished to the other parties hereto in writing in accordance herewith.  Any
such notice or communication shall be deemed to have been delivered and received
(i) in the case of personal delivery or delivery by telecopier, on the date of
such deliver, (ii) in the case of nationally-recognized overnight courier, on
the next business day after the date when sent and (ii) in the case of mailing,
on the third business day following that on which the piece of mail containing
such communication is posted.  As used in this Section 13, "business day" shall
mean any day other than a day on which banking institutions in the Commonwealth
of Virginia are legally closed for business.

14.  Binding Effect on Successors; Survival.  This Warrant shall be binding upon
     --------------------------------------
any corporation succeeding the Corporation by merger, consolidation or
acquisition of all or substantially all of the Corporation's assets.  All of the
obligations of the Corporation relating to the Preferred Stock issuable upon the
exercise of this Warrant or the Common Stock issuable upon conversion of the
Preferred Stock shall survive the exercise and termination of this Warrant.  All
of the covenants and agreements of the Corporation shall inure to the benefit of
the successors and assigns of AOL.

15.  Descriptive Headings and Governing Law.  The description headings of the
     --------------------------------------
several sections and paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant.  This Warrant shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the laws of the Commonwealth of Virginia.

16.  Fractional Shares.  No fractional shares shall be issued upon exercise of
     -----------------
this Warrant.  The Corporation shall, in lieu of issuing any fractional share,
pay the holder entitled to such fraction a sum in cash equal to such fraction
multiplied by the then Fair Market Value of one Warrant Share.

                                     * * *

                                       9
<PAGE>

          IN WITNESS WHEREOF, the undersigned have caused this Warrant and
Warrant Agreement to be executed by their duly authorized officers on the date
first above written.

                                           DIGITALWORK.COM, INC.

                                           By:  /s/ David P. Aniol
                                           Name:    D.P. Aniol
                                           Title:   CFO

                                       10
<PAGE>

                              Form of Subscription

                    [To be signed upon exercise of Warrant]

          The undersigned, the holder of the Warrant, hereby irrevocably elects
to exercise the purchase rights represented by such Warrant for, and to purchase
thereunder, _________ shares of _________ of DigitalWork.com, Inc. and herewith
makes payment of $_________ therefor, and requests that the certificates for
such shares be issued in the name of and delivered to, ______________________,
whose address is _________________________.

Dated:_____________
                              _________________________________
                              (Signature)

                              _________________________________
                              (Address)

                                      11
<PAGE>

                               Notice of Exchange

                       (To be executed by the Holder in
                        order to exchange the Warrant.)

          The undersigned hereby irrevocably elects to exchange this Warrant
into __________ shares (the foregoing number constituting the number of Warrant
Shares to be issued pursuant to Section 3 of this Warrant) of ________ of
DigitalWork.com, Inc., minus any shares to be deducted from the foregoing number
in accordance with the terms of this Warrant, according to the conditions
thereof.  The undersigned desires to consummate such exchange on
________________.

Dated:

                              _____________________________
                              Name of Holder:

                              By:__________________________

                                      12
<PAGE>

                               Form of Assignment

                  [To be signed only upon transfer of Warrant]

          For value received, the undersigned hereby sells, assigns and
transfers unto the right represented by the Warrant to purchase _______ shares
of _________ of DigitalWork.com, Inc., to which the Warrant relates, and
appoints Attorney to transfer such right on the books of [ISSUER], with full
power of substitution in the premises.

Dated:_____________

                              ____________________________
                              (Signature)

Signed in the presence of:

______________________________

                                      13<PAGE>

                                                                    EXHIBIT 10.8

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR
TRANSFERRED UNLESS SUCH SALE OR TRANSFER IS IN ACCORDANCE WITH THE REGISTRATION
REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR SOME OTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS IS AVAILABLE WITH
RESPECT THERETO.

                         COMMON STOCK PURCHASE WARRANT

Warrant No. PA-2                                   Number of Shares 31,000

                               DIGITALWORK, INC.

                                                   Void after April __, 2009

     1.  Issuance.  This Warrant is issued to Edward C. Coppola (the "Investor")
         --------
by DigitalWork, Inc., a Delaware corporation (hereinafter with its successors
called the "Company").

     2.  Exercise of Warrant to Purchase Common Stock.  Subject to the terms and
         --------------------------------------------
conditions hereinafter set forth, the registered holder of this Warrant (the
"Holder"), commencing on the date hereof, is entitled upon surrender of this
Warrant with the subscription form annexed hereto duly executed, at the office
of the Company, 1701 Golf Road, Tower Three, Suite 802, Rolling Meadows, IL
60008, or such other office as the Company shall notify the Holder of in
writing, to purchase from the Company at a price per share (the "Purchase
Price") of $______________ , Thirty-One Thousand (31,000) fully paid and
nonassessable shares of Common Stock, $0.005 par value, of the Company.  Until
such time as this Warrant is exercised in full or expires, the Number of
Warrants, Purchase Price and the Common Stock issuable upon exercise of this
                                 ------
Warrant are subject to adjustment as hereinafter provided.

     3.  Payment of Purchase Price.  The Purchase Price may be paid (i) in cash
         -------------------------
or by check, (ii) by the surrender by the Holder to the Company of any
promissory notes or other obligations issued by the Company, with all such notes
and obligations so surrendered being credited against the Purchase Price in an
amount equal to the principal amount thereof plus accrued interest to the date
of surrender, (iii) through delivery by the Holder to the Company of other
securities issued by the Company, with such securities being credited against
the Purchase Price in an amount equal to the fair market value thereof, as
determined in good faith by the Board of Directors of the Company (the "Board"),
or (iv) by any combination of the foregoing. The Board shall promptly respond in
writing to an inquiry by the Holder as to the fair market value of any
securities the Holder may wish to deliver to the Company pursuant to clause
(iii) above.

     4.  Net Issue Election.  The Holder may elect to receive, without the
         ------------------
payment by the Holder of any additional consideration, shares equal to the value
of this Warrant or any portion hereof by the surrender of this Warrant or such
portion to the Company, with the net issue election

                                       1
<PAGE>

notice annexed hereto duly executed, at the office of the Company. Thereupon,
the Company shall issue to the Holder such number of fully paid and
nonassessable shares of Common Stock as is computed using the following formula:

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

where

          X = the number of shares to be issued to the Holder pursuant to this
          Section 4.

          Y = the number of shares covered by this Warrant in respect of which
          the net issue election is made pursuant to this Section 4.

          A = the fair market value of one share of Common Stock, as determined
          in good faith by the Board, as at the time the net issue election is
          made pursuant to this Section 4.

          B = the Purchase Price in effect under this Warrant at the time the
          net issue election is made pursuant to this Section 4.

The Board shall promptly respond in writing to an inquiry by the Holder as to
the fair market value of one share of Common Stock.

     5.  Partial Exercise.  This Warrant may be exercised in part, and the
         ----------------
Holder shall be entitled to receive a new warrant, which shall be dated as of
the date of this Warrant, covering the number of shares in respect of which this
Warrant shall not have been exercised.

     6.  Issuance Date.  The person or persons in whose name or names any
         -------------
certificate representing shares of Common Stock is issued hereunder shall be
deemed to have become the holder of record of the shares represented thereby as
at the close of business on the date this Warrant is exercised with respect to
such shares, whether or not the transfer books of the Company shall be closed.

     7.  Expiration Date; Automatic Exercise.  This Warrant shall expire at the
         -----------------------------------
close of business on April __, 2009, and shall be void thereafter.
Notwithstanding the foregoing, this Warrant shall automatically be deemed to be
exercised in full pursuant to the provisions of Section 4 hereof, without any
further action on behalf of the Holder, immediately prior to the time this
Warrant would otherwise expire pursuant to the preceding sentence.

     8.  Reserved Shares; Valid Issuance.  The Company covenants that it will at
         -------------------------------
all times from and after the date hereof reserve and keep available such number
of its authorized shares of Common Stock, $0.005 par value (the "Common Stock"),
free from all preemptive or similar rights therein, as will be sufficient to
permit, respectively, the exercise of this Warrant in full. The Company further
covenants that such shares as may be issued pursuant to such exercise and

                                       2
<PAGE>

conversion will, upon issuance, be duly and validly issued, fully paid and
nonassessable and free from all taxes, liens and charges with respect to the
issuance thereof.

     9.  Stock Dividends.  If after the date hereof (the "Original Issue Date"),
         ---------------
the Company shall subdivide the Common Stock, by split-up or otherwise, or
combine the Common Stock, or issue additional shares of Common Stock in payment
of a stock dividend on the Common Stock, the number of shares issuable on the
exercise of this Warrant shall forthwith be proportionately increased in the
case of a subdivision or stock dividend, or proportionately decreased in the
case of a combination, and the Purchase Price shall forthwith be proportionately
decreased in the case of a subdivision or stock dividend, or proportionately
increased in the case of a combination.

     10.  Mergers and Reclassifications.  If after the Original Issue Date there
          -----------------------------
shall be any reclassification, capital reorganization or change of the Common
Stock (other than as a result of a subdivision, combination or stock dividend
provided for in Section 9 hereof), or any consolidation of the Company with, or
merger of the Company into, another corporation or other business organization
(other than a consolidation or merger in which the Company is the continuing
corporation and which does not result in any reclassification or change of the
outstanding Common Stock), or any sale or conveyance to another corporation or
other business organization of all or substantially all of the assets of the
Company, then, as a condition of such reclassification, reorganization, change,
consolidation, merger, sale or conveyance, lawful provisions shall be made, and
duly executed documents evidencing the same from the Company or its successor
shall be delivered to the Holder, so that the Holder shall thereafter have the
right to purchase, at a total price not to exceed that payable upon the exercise
of this Warrant in full, the kind and amount of shares of stock and other
securities and property receivable upon such reclassification, reorganization,
change, consolidation, merger, sale or conveyance by a holder of the number of
shares of Common Stock which might have been purchased by the Holder immediately
prior to such reclassification, reorganization, change, consolidation, merger,
sale or conveyance and in any such case appropriate provisions shall be made
with respect to the rights and interest of the Holder to the end that the
provisions hereof (including without limitation, provisions for the adjustment
of the Purchase Price and the number of shares issuable hereunder) shall
thereafter be applicable in relation to any shares of stock or other securities
and property thereafter deliverable upon exercise hereof.

     11.  Fractional Shares.  In no event shall any fractional share of Common
          -----------------
Stock be issued upon any exercise of this Warrant. If, upon exercise of this
Warrant as an entirety, the Holder would, except as provided in this Section 11,
be entitled to receive a fractional share of Common Stock, then the Company
shall issue the next higher number of full shares of Common Stock, issuing a
full share with respect to such fractional share.

     12.  Certificate of Adjustment.  Whenever the Purchase Price is adjusted,
          -------------------------
as hereinprovided, the Company shall promptly deliver to the Holder a
certificate of a firm of independent public accountants setting forth the
Purchase Price after such adjustment and setting forth a brief statement of the
facts requiring such adjustment.

     13.  Notices of Record Date, Etc.  In the event of:
          ---------------------------

                                       3
<PAGE>

          (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 or other distribution, 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,

          (b)  any reclassification of the capital stock of the Company, capital
reorganization of the Company, consolidation or merger involving the Company, or
sale or conveyance of all or substantially all of its assets, or

          (c)  any voluntary or involuntary dissolution, liquidation or winding-
up of the Company, then and in each such event the Company will mail or cause to
be mailed to the Holder 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, or
(ii) the date on which any such reclassification, reorganization, consolidation,
merger, sale or conveyance, 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 in
respect of such event are to be determined. Such notice shall be mailed at least
20 days prior to the date specified in such notice on which any such action is
to be taken.

          14.  Amendment.  The terms of this Warrant may be amended, modified or
               ---------
waived only with the written consent of the Company and the holders of Warrants
representing at least two-thirds of the number of shares of Common Stock then
issuable upon the exercise of the Warrants. No such amendment, modification or
waiver shall be effective as to this Warrant unless the terms of such amendment,
modification or waiver shall apply with the same force and effect to all of the
other Warrants then outstanding.

          15.  Warrant Register: Transfers, Etc,
               ---------------------------------

               A.  The Company will maintain a register containing the names and
addresses of the registered holders of the Warrants. The Holder may change its
address as shown on the warrant register by written notice to the Company
requesting such change. Any notice or written communication required or
permitted to be given to the Holder may be given by certified mail or delivered
to the Holder at its address as shown on the warrant register.

               B.  Subject to compliance with applicable federal and state
securities laws, this Warrant may be transferred by the Holder with respect to
any or all of the shares purchasable hereunder. Upon surrender of this Warrant
to the Company, together with the assignment hereof properly endorsed, for
transfer of this Warrant as an entirety by the Holder, the Company shall issue a
new warrant of the same denomination to the assignee. Upon surrender of this
Warrant to the Company, together with the assignment hereof properly endorsed,
by the Holder for transfer with respect to a portion of the shares of Common
Stock purchasable hereunder, the Company shall issue a new warrant to the
assignee, in such denomination as shall be requested by the Holder hereof, and
shall issue to such Holder a new warrant covering the number of shares in
respect of which this Warrant shall not have been transferred.

                                       4
<PAGE>

               C.  In case this Warrant shall be mutilated, lost, stolen or
destroyed, the Company shall issue a new warrant of like tenor and denomination
and deliver the same (i) in exchange and substitution for and upon surrender and
cancellation of any mutilated Warrant, or (ii) in lieu of any Warrant lost,
stolen or destroyed, upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft or destruction of such Warrant (including a
reasonably detailed affidavit with respect to the circumstances of any loss,
theft or destruction) and of indemnity reasonably satisfactory to the Company,
provided, however, that so long as Investor is the registered holder of this
Warrant, no indemnity shall be required other than its written agreement to
indemnify the Company against any loss arising from the issuance of such new
warrant.

     16.  No Impairment.  The Company will not, by amendment of its Articles of
          -------------
Incorporation, as amended, or through any reclassification, capital
reorganization, consolidation, merger, sale or conveyance of assets,
dissolution, liquidation, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms
of this Warrant, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder.

     17.  Governing Law.  The provisions and terms of this Warrant shall be
          -------------
governed by and construed in accordance with the internal laws of the State of
Illinois.

     18.  Successors and Assigns.  This Warrant shall be binding upon the
          ----------------------
Company's successors and assigns and shall inure to the benefit of the Holder's
successors, legal representatives and permitted assigns.

     19.  Business Days.  If the last or appointed day for the taking of any
          -------------
action required or the expiration of any right granted herein shall be a
Saturday or Sunday or a legal holiday in the state of Illinois, then such action
may be taken or right may be exercised on the next succeeding day which is not a
Saturday or Sunday or such a legal holiday.

                         [Signatures on Following Page]

                                       5
<PAGE>

Dated: April ____, 1999               DIGITALWORK, INC.

(Corporate Seal)

                                      By:  _______________________________

Attest:  _________________________    Title:  ____________________________

                                       6
<PAGE>

                                  SUBSCRIPTION

To: _____________________          Date: ___________________

     The undersigned hereby subscribes for ____________ shares of Common Stock
covered by this Warrant. The certificate(s) for such shares shall be issued in
the name of the undersigned or as otherwise indicated below:

                                       ___________________________________
                                       Signature

                                       ___________________________________
                                       Name for Registration

                                       ___________________________________
                                       Mailing Address

                                       7
<PAGE>

                           Net Issue Election Notice

To: ________________________        Date: ________________________

     The undersigned hereby elects under Section 4 to surrender the right to
purchase shares of Common Stock pursuant to this Warrant. The certificate(s) for
the shares issuable upon such net issue election shall be issued in the name of
the undersigned or as otherwise indicated below.

                                         ___________________________________
                                         Signature

                                         ___________________________________
                                         Name for Registration

                                         ___________________________________
                                         Mailing Address

                                       8
<PAGE>

                                   Assignment

     For value received ________________________ hereby sells, assigns and
transfers unto

____________________________________________________________________________

____________________________________________________________________________
           (Please print or typewrite name and address of Assignee)

the within Warrant, and does hereby irrevocably constitute and appoint
___________________  its attorney to transfer the within Warrant on the books of
the within named Company with full power of substitution on the premises.

Dated:________________________

In the Presence of.

____________________________________         ___________________________________
                                             (Signature)

                                             ___________________________________
                                             (Print Name)

                                       9

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