Document:

Exhibit 10.30

                         INFINITE GRAPHICS INCORPORATED
                             1999 STOCK OPTION PLAN

                      Article I. Establishment and Purpose

         1.1 Establishment. Infinite Graphics Incorporated, a Minnesota
corporation ("Company"), hereby establishes a stock option plan for employees
and others providing services to the Company, as described herein, which shall
be known as the "1999 STOCK OPTION PLAN" ("Plan"). The Plan permits the granting
of Nonstatutory Stock Options and Incentive Stock Options.

         1.2 Purpose. The purposes of this Plan are to enhance shareholder
investment by attracting, retaining, and motivating employees and consultants of
the Company and to encourage stock ownership by such employees and consultants
by providing them with a means to acquire a proprietary interest in the
Company's success.

            Article II. Definitions, Gender and Number, Severability

         2.1 Definitions. Unless the context clearly requires otherwise, the
following terms shall have the respective meanings set forth below, and when
said meaning is intended, the term shall be capitalized.

         (a)      "Board" means the Board of Directors of the Company.

         (b)      "Code" means the Internal Revenue Code of 1986, as amended.

         (c)      "Committee" shall mean the Committee, as specified in Article
                  IV hereof, appointed by the Board to administer the Plan, or
                  the Board if no Committee is appointed.

         (d)      "Company" means Infinite Graphics Incorporated, a Minnesota
                  corporation (including any and all subsidiaries).

         (e)      "Consultant" means any person or entity, including an officer
                  or director of the Company who provides consulting, director
                  or advisory services (other than as an Employee) to the
                  Company.

         (f)      "Date of Exercise" means the date the Company receives notice
                  by an Optionee of the exercise of an Option pursuant to
                  Section 8.1 of this Plan. Such notice shall indicate the
                  number of shares of Stock as to which the Optionee intends to
                  exercise an Option.

         (g)      "Employee" means any person, including an officer or director
                  of the Company, who is employed by the Company.

         (h)      "Exchange Act" means the Securities Exchange Act of 1934, as
                  amended.

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         (i)      "Exercise Price" means the amount for which one share of Stock
                  may be purchased upon exercise of an Option, as specified in
                  the applicable Option Agreement.

         (j)      "Fair Market Value" means the price per share determined as
                  follows: (a) if the security is listed for trading on one or
                  more national securities exchanges (including the NASDAQ
                  National Market System), the reported last sale price on such
                  principal exchange on the date in question, or if such
                  security shall not have been traded on such principal exchange
                  on such date, the reported last sale price on such principal
                  exchange on the first day prior thereto on which such security
                  was so traded; or (b) if the security is not listed for
                  trading on a national securities exchange (including the
                  NASDAQ National Market System) but is traded in the
                  over-the-counter market, the mean of the highest ask and
                  lowest bid prices for such security on the date in question,
                  or if there are no such ask and bid prices for such security
                  on such date, the mean of the highest ask and lowest bid
                  prices on the first day prior thereto on which such prices
                  existed; or (c) if neither (a) nor (b) is applicable, by any
                  means deemed fair and reasonable by the Committee (as defined
                  above), which determination shall be final and binding on all
                  parties.

         (k)      "Incentive Stock Option" means an Option granted under this
                  Plan that is designated as an Incentive Stock Option and is
                  intended to qualify as an "incentive stock option" within the
                  meaning of Section 422 of the Code.

         (l)      "Insider" means a person who is, at the time of an Option
                  grant hereunder, an executive officer, director or holder of
                  more than ten percent of the outstanding shares of the Stock,
                  as defined in Section 16 of the Exchange Act.

         (m)      "Nonstatutory Option" means an Option granted under this Plan
                  that is not intended to qualify as an incentive stock option
                  within the meaning of Section 422 of the Code. Except as
                  otherwise specified herein, Nonstatutory Options may be
                  granted at such times and subject to such restrictions as the
                  Board shall determine without conforming to the statutory
                  rules of Section 422 of the Code applicable to incentive stock
                  options.

         (n)      "Option" means the right, granted under this Plan, to purchase
                  Stock of the Company at the Exercise Price for a specified
                  period of time. For purposes of this Plan, an Option may be
                  either an Incentive Stock Option or a Nonstatutory Option.

         (o)      "Optionee" means a person to whom an Option has been granted
                  under the Plan.

         (p)      "Parent Corporation" shall have the meaning set forth in
                  Section 424(e) of the Code with the Company being treated as
                  the employer corporation for purposes of this definition.

         (q)      "Subsidiary Corporation" shall have the meaning set forth in
                  Section 424(f) of the Code with the Company being treated as
                  the employer corporation for purposes of this definition.

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         (r)      "Significant Shareholder" means an individual who, within the
                  meaning of Section 422(b)(6) of the Code, owns Stock
                  possessing more than ten percent of the total combined voting
                  power of all classes of stock of the Company or of any Parent
                  Corporation or Subsidiary Corporation of the Company. In
                  determining whether an individual is a Significant
                  Shareholder, an individual shall be treated as owning Stock
                  owned by certain relatives of the individual and certain Stock
                  owned by corporations in which the individual is a
                  shareholder, partnerships in which the individual is a
                  partner, and estates or trusts of which the individual is a
                  beneficiary, all as provided in Section 424(d) of the Code.

         (s)      "Stock" means the common stock of the Company.

         2.2 Gender and Number. Except when otherwise indicated by the context,
any masculine terminology when used in this Plan also shall include the feminine
gender, and the definition of any term herein in the singular also shall include
the plural.

         2.3 Severability. In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.

                   Article III. Eligibility and Participation

         3.1 Eligibility. All Employees are eligible to participate in this Plan
and receive Incentive Stock Options and/or Nonstatutory Options hereunder. All
Consultants are eligible to participate in this Plan and receive Nonstatutory
Options hereunder.

         3.2 Actual Participation. Subject to the provisions of the Plan, the
Committee may, from time to time, select from all Employees and Consultants
those to whom Options shall be granted and shall determine the nature of and
number of shares of Stock subject to each such Option.

                           Article IV. Administration

         4.1 The Committee. The Plan shall be administered by the Committee. If
the entire Board of Directors is not serving as the Committee, the Committee
appointed by the Board shall meet the requirements of Rule 16b-3 so that Options
granted under the Plan may be considered "exempt" under Rule 16b-3 and Section
16(b) of the Exchange Act. If for any reason the Committee does not qualify to
administer the Plan as contemplated by Rule 16b-3 of the Exchange Act, or as may
be required under applicable tax law to permit a deduction with respect to
certain Options issued under the Plan, the Board may appoint a new Committee so
as to comply with the requirements of Rule 16b-3 and such tax law.

         4.2 Authority of the Committee. The Committee shall have full power
except as limited by law or by the Articles of Incorporation or Bylaws of the
Company, and subject to the provisions herein, to determine the size and types
of Options; to determine the terms and conditions of such Options in a manner
consistent with the Plan; to construe and interpret the Plan and any agreement
or instrument entered into under the Plan; to establish, amend, or waive rules
and regulations for the Plan's administration; and (subject to the provisions of
Article XII herein) to amend the terms and conditions of any outstanding Option
to the extent such terms and conditions are within the discretion of the
Committee as provided in the Plan. Further, the Committee shall make all other
determinations which

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may be necessary or advisable for the administration of the Plan. As permitted
by law, the Committee may delegate its authorities as identified hereunder.

         4.3 Decisions Binding. All determinations and decisions made by the
Committee pursuant to the provisions of the Plan and all related orders or
resolutions of the Board of Directors shall be final, conclusive, and binding on
all persons, including the Company, its shareholders, Employees, Consultants,
Optionees, and their respective successors.

                      Article V. Stock Subject to the Plan

         5.1 Number. The total number of shares of Stock hereby made available
for grant and reserved for issuance under the Plan shall be 450,000. The
aggregate number of shares of Stock available under this Plan shall be subject
to adjustment as provided in Article XIII. The total number of shares of Stock
may be authorized but unissued shares of Stock, or shares acquired by purchase
as directed by the Board from time to time in its discretion, to be used for
issuance upon exercise of Options granted hereunder.

         5.2 Lapsed Options. If an Option shall expire or terminate for any
reason without having been exercised in full, the unpurchased shares of Stock
subject thereto shall (unless the Plan shall have terminated) become available
for other Options under the Plan.

                        Article VI. Duration of the Plan

         6.1 Duration of the Plan. Subject to shareholder approval, the Plan
shall be in effect for ten years from the date of its adoption by the Board. Any
Options outstanding at the end of said period shall remain in effect in
accordance with their terms. The Plan shall terminate before the end of said
period if all Stock subject to it has been purchased pursuant to the exercise of
Options granted under the Plan.

                       Article VII. Terms of Stock Options

         7.1 Grant of Options. Subject to Section 5.1, Options may be granted to
Employees or Consultants at any time and from time to time as determined by the
Committee; provided, however, that Consultants may receive only Nonstatutory
Options, and may not receive Incentive Stock Options. The Committee shall have
complete discretion in determining the recipient of Options among the Employees
or Consultants, the number of shares of Stock subject to an Option and the
number of Options granted to each Optionee. In making such determinations, the
Committee may take into account the nature of services rendered by such
Employees or Consultants, their present and potential contributions to the
Company, and such other factors as the Committee in its discretion shall deem
relevant. The Committee also shall determine whether an Option is to be an
Incentive Stock Option or a Nonstatutory Option.

         The aggregate Fair Market Value (determined at the date of grant) of
shares of Stock with respect to which Incentive Stock Options are exercisable
for the first time by the Optionee during any calendar year under all plans of
the Company under which Incentive Stock Options may be granted (and all such
plans of any Parent Corporations and any Subsidiary Corporations of the Company)
shall not exceed $100,000.

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         The preceding paragraph shall not be deemed to prevent the grant of
Options in excess of the maximums established by the preceding paragraph where
such excess amount is treated as a Nonstatutory Option; provided, however, no
Optionee may be granted Options in any fiscal year to purchase an aggregate
number of shares of Stock in excess of 100,000 shares per Optionee, subject to
adjustment under Article XIII.

         The Committee is expressly given the authority to issue amended Options
with respect to shares of Stock subject to an Option previously granted
hereunder. An amended Option amends the terms of an Option previously granted
and thereby supersedes the previous Option.

         No Options granted under the Plan may be exercisable before the
approval of the Plan by the shareholders of the Company pursuant to the Bylaws
of the Company.

         7.2 No Tandem Options. Where an Option granted under this Plan is
intended to be an Incentive Stock Option, the Option shall not contain terms
pursuant to which the exercise of the Option would affect the Optionee's right
to exercise another Option, or vice versa, such that the Option intended to be
an Incentive Stock Option would be deemed a tandem stock option within the
meaning of the regulations under Section 422 of the Code.

         7.3 Option Agreement. As determined by the Committee on the date of
grant, each Option shall be evidenced by an Option agreement (the "Option
Agreement") that includes the nontransferability provisions of Section 10.2
hereof and specifies: whether the Option is an Incentive Stock Option or a
Nonstatutory Option; the Exercise Price; the duration of the Option; the number
of shares of Stock to which the Option applies; any vesting or serial exercise
restrictions which the Committee may impose; and any other terms or conditions
which the Committee may impose.

         All Option Agreements shall incorporate the provisions of this Plan by
reference, with certain provisions to apply depending upon whether the Option
Agreement applies to an Incentive Stock Option or to a Nonstatutory Option.

         7.4 Exercise Price. No Incentive Stock Option granted pursuant to this
Plan shall have an Exercise Price that is less than the Fair Market Value of
Stock on the date the Option is granted. Incentive Stock Options granted to
Significant Shareholders shall have an Exercise Price of not less than 110
percent of the Fair Market Value of Stock on the date of grant. The Exercise
Price for Nonstatutory Options shall be equal to the Fair Market Value of Stock
on the date the Option is granted and shall not be subject to the restrictions
applicable to Incentive Stock Options.

         7.5 Term of Options. Each Option shall expire at such time as the
Committee shall determine when it is granted, provided however that no Option
shall be exercisable later than the tenth anniversary date of its grant. By its
terms, an Incentive Stock Option granted to a Significant Shareholder shall not
be exercisable after five years from the date of grant.

         7.6 Exercise of Options. Options granted under the Plan shall be
exercisable at such times and be subject to such restrictions and conditions as
the Committee shall in each instance approve, which need not be the same for all
Optionees.

         7.7 Payment. Payment for all shares of Stock shall be made at the time
that an Option, or any part thereof, is exercised, and no shares shall be issued
until full payment therefor has been made. Payment shall be made in cash, cash
equivalents, or other form acceptable to the Committee, including without
limitation, in Stock having a Fair Market Value at the time of the exercise
equal to the Exercise

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Price; provided, however, in the case of an Incentive Stock Option, that said
other form of payment does not prevent the Option from qualifying for treatment
as an "incentive stock option" within the meaning of the Code. In addition, the
Company may establish a cashless exercise program in accordance with applicable
rules and regulations.

                    Article VIII. Written Notice, Issuance of
                   Stock Certificates, Shareholder Privileges

         8.1 Written Notice. An Optionee wishing to exercise an Option shall
give written notice to the Chief Financial Officer of the Company, in the form
and manner prescribed by the Committee. Except for approved "cashless
exercises," full payment for the shares exercised pursuant to the Option must
accompany the written notice.

         8.2 Issuance of Stock Certificates. As soon as practicable after the
receipt of written notice and payment, the Company shall deliver to the Optionee
or to a nominee of the Optionee a certificate or certificates for the requisite
number of shares of Stock. Such certificate may bear a legend restricting
transfer thereof.

         8.3 Rights of a Shareholder. An Optionee or any other person entitled
to exercise an Option under this Plan shall not have dividend rights, voting
rights or other rights or privileges of a shareholder with respect to any Stock
covered by an Option until the date of issuance of a stock certificate for such
Stock. No adjustment shall be made for cash dividends or other rights for which
the record date is prior to such date of issuance, except as expressly provided
in the Plan.

                      Article IX. Termination of Employment

         9.1 Death. Unless otherwise determined by the Committee, if an
Optionee's employment in the case of an Employee, or provision of services as a
Consultant, in the case of a Consultant, terminates by reason of death, the
Option may thereafter be exercised at any time prior to the expiration date of
the Option or within 12 months after the date of such death, whichever period is
the shorter, by the person or persons entitled to do so under the Optionee's
will or, if the Optionee shall fail to make a testamentary disposition of an
Option or shall die intestate, the Optionee's legal representative or
representatives. The Option shall be exercisable only to the extent that such
Option was exercisable as of the date of death.

         9.2 Termination Other Than For Cause Or Due to Death. Unless otherwise
determined by the Committee, in the event of an Optionee's termination of
employment, in the case of an Employee (except when an Employee becomes a
Consultant), or termination of the provision of services as a Consultant, in the
case of a Consultant, other than by reason of death or for cause (as defined
below in Section 9.3), the Optionee may exercise such portion of his or her
Option as was exercisable by the Optionee at the date of such termination (the
"Termination Date") at any time within 3 months after the Termination Date;
provided, however, that when termination occurs due to disability as defined in
the Code, such Optionee may exercise such portion of any Option as was
exercisable by such Optionee on Optionee's Termination Date within one year
after such Termination Date. In any event, the Option cannot be exercised after
the expiration of the term of the Option. Options not exercised within the
applicable period specified above shall terminate.

         In the case of an Employee, a change of duties or position within the
Company or an assignment of employment in a Subsidiary Corporation or Parent
Corporation of the Company, if any, or from such a

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corporation to the Company, shall not be considered a termination of employment
for purposes of this Plan. The Option Agreements may contain such provisions, as
the Committee shall approve with reference to the effect of approved leaves of
absence upon termination of employment.

         9.3 Termination for Cause. In the event of an Optionee's termination of
employment, in the case of an Employee, or termination of the provision of
services as a Consultant in the case of a Consultant, which termination is by
the Company for cause (as defined below in Section 9.3), any Option or Options
held by such Optionee under the Plan, to the extent not exercised before such
termination, shall terminate immediately.

         The term "cause" means: (i) Optionee's conviction of a felony which
would materially damage the reputation of the Company, (ii) material
misappropriation by Optionee of the Company's property or other material acts of
dishonesty by Optionee against the Company or (iii) Optionee's gross negligence
or willful misconduct in the performance of Optionee's duties, which has a
material adverse effect on the Company.

                         Article X. Rights of Optionees

         10.1 Service. Nothing in this Plan shall interfere with or limit in any
way the right of the Company to terminate any Employee's employment, or any
Consultant's services, at any time, nor confer upon any Employee any right to
continue in the employ of the Company, or upon any Consultant any right to
continue to provide services to the Company.

         10.2 Restrictions on Transfer. Except as otherwise provided by this
Section 10.2, all Options granted under this Plan shall be nontransferable by
the Optionee, other than by will or the laws of descent and distribution, and
shall be exercisable during the Optionee's lifetime only by the Optionee. The
Committee may, in its sole discretion and with the consent of the Optionee: (i)
grant Nonstatutory Options which are transferable within the restrictions of
this Section 10.2, (ii) amend a then existing Nonstatutory Option to allow for
transferability of such Option within the restrictions of this Section 10.2 or
(iii) amend a then existing Incentive Stock Option (whereby such Option will
become a Nonstatutory Option) to allow for transferability of such Option within
the restrictions of this Section 10.2 (collectively, the "Transferable
Options").

         The Committee may, in its sole discretion, authorize all or a portion
of the Transferable Options to be on terms which permit transfer of such Option
by the initial Optionee of such Option (the "Initial Optionee") to (i) the
spouse, children, step-children, grandchildren, step-grandchildren, siblings or
parents of the Initial Optionee ("Immediate Family Members"), (ii) a trust or
trusts for the exclusive benefit of such Immediate Family Members, (iii) a
partnership or other entity in which such Immediate Family Members are the only
partners or equity owners (iv) a former spouse of the Initial Optionee pursuant
to a qualified domestic relations order (collectively, a "Permitted
Transferee"), provided that:

         (1)      There may be no consideration for any such transfer;

         (2)      the stock option agreement pursuant to which such Options are
                  granted, or any amendment thereto, must be approved by the
                  Committee, and must expressly provide for transferability in a
                  manner consistent with this Section 10.2;

         (3)      Any option or portion thereof transferred by an Initial
                  Optionee to a Permitted Transferee may be exercised by the
                  Permitted Transferee only to the same extent as the

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                  Initial Optionee would have been entitled to exercise it, and
                  shall remain subject to all of the terms and conditions that
                  would have applied to such Option under the provisions of the
                  Plan and option agreement, if the Initial Optionee had not
                  transferred such option or portion thereof to the Permitted
                  Transferred;

         (4)      Subsequent transfers of transferred Options (including sale,
                  assignment, pledge or other transfer) shall be prohibited
                  except by will or the laws of descent and distribution;

         (5)      the Initial Optionee shall remain subject to applicable
                  withholding taxes upon exercise of options transferred to a
                  Permitted Transferee;

         (6)      the Company shall have no obligation to notify the Permitted
                  Transferee of the expiration or early termination of any
                  option;

         (7)      the Committee may, in its sole discretion, require as a
                  condition to the transfer of an option, that the Permitted
                  Transferee execute an agreement under which the Permitted
                  Transferee would become a party to the applicable option
                  agreement and agree that in the event the Company merges into
                  or consolidates with another entity, the Company sells all or
                  a substantial part of its assets, or the Company's common
                  stock is subject to a tender or exchange offer, the Permitted
                  Transferee will consent to the transfer or assumption of the
                  option, or accept a new option in substitution therefor, if
                  the Company requests the Permitted Transferee to do so; and

         (8)      such transfer shall not be effective unless and until the
                  Initial Optionee has furnished the Committee written notice of
                  the transfer, copies of all requested documents evidencing the
                  transfer, and such other agreements as may be required by the
                  Committee.

                         Article XI. Optionee-Employee's
                          Transfer or Leave of Absence

         11.1     Optionee-Employee's Transfer or Leave of Absence. For Plan
                  purposes--

         (a)      A transfer of an Optionee who is an Employee from the Company
                  to a Subsidiary Corporation or Parent Corporation, or from one
                  such corporation to another, or

         (b)      a leave of absence for such an Optionee (i) which is duly
                  authorized in writing by the Company, and (ii) if the Optionee
                  holds an Incentive Stock Option, which qualifies under the
                  applicable regulations under the Code which apply in the case
                  of incentive stock options,

shall not be deemed a termination of employment. However, under no circumstances
may an Optionee exercise an Option during any leave of absence, unless
authorized by the Committee.

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                             Article XII. Amendment,
                    Modification, and Termination of the Plan

         12.1 Amendment, Modification, and Termination of the Plan. The Board
may at any time terminate, and from time to time may amend or modify the Plan,
provided, however, that no such action of the Board, without approval of the
shareholders, may:

         (a)      increase the total amount of Stock that may be purchased
                  through Options granted under the Plan, except as provided in
                  Section 13.1; or

         (b)      change the class of Employees or Consultants eligible to
                  receive Options; or

         (c)      change the provisions of Section 7.1 above to allow an
                  Optionee to be granted Options in any fiscal year to purchase
                  an aggregate number of shares of Stock in excess of 100,000
                  shares per Optionee, subject to adjustment under Article XIII.

         12.2 Options Previously Granted. No amendment, modification, or
termination of the Plan shall in any manner adversely affect any outstanding
Option under the Plan without the consent of the Optionee holding the Option.

                    Article XIII. Changes in Capitalization,
      Dissolution, Liquidation, Reorganization and Acceleration of Vesting

         13.1 Adjustments. In the event of a subdivision of the outstanding
Stock, a declaration of a dividend payable in Stock, a declaration of a dividend
payable in a form other than Stock in an amount that has a material effect on
the value of the Stock, a combination or consolidation of the outstanding Stock
(by reclassification or otherwise) into a lesser number of shares of stock, a
recapitalization, a spin-off or a similar occurrence, the Committee shall make
such adjustments as it, in its sole discretion, deems appropriate in one or more
of:

         (a)      The number of shares of stock available for future grants
                  under Article V;

         (b)      The number of shares of stock covered by each outstanding
                  Option; or

         (c)      The Exercise Price under each outstanding Option.

Except as provided in this Article 13, an Optionee shall have no rights by
reason of any issue by the Company of any class of capital stock or securities
convertible into capital stock of any class, any subdivision or consolidation of
shares of capital stock of any class, the payment of any capital stock dividend
or any other increase or decrease in the number of shares of capital stock of
any class.

         13.2 Dissolution or Liquidation. To the event not previously exercised,
Options shall terminate immediately prior to the dissolution or liquidation of
the Company.

         13.3 Reorganizations. In the event that the Company is a party to a
merger or other reorganization, outstanding Options are subject to the agreement
of merger or reorganization. Such agreement shall provide for:

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         (a)      The continuation of the outstanding Options by the Company, if
                  the Company is a surviving corporation;

         (b)      The assumption of the outstanding Options by the surviving
                  corporation or its parent or subsidiary;

         (c)      The substitution by the surviving corporation or its parent or
                  subsidiary of its own Options for the outstanding Options;

         (d)      Full exercisability or vesting and accelerated expiration of
                  the outstanding Options; or

         (e)      Settlement of the full value of the outstanding Options in
                  cash or cash equivalents followed by cancellation of such
                  Options.

         13.4 Impact of Acceleration Event. The Option Agreement may, at the
discretion of the Committee, provide that Options granted hereunder will become
fully exercisable and vested in the event of an "Acceleration Event" as defined
in Section 13.5 or a "Potential Acceleration Event" as defined in Section 13.6.

         13.5 Definition of "Acceleration Event." For purposes of Section 13.4,
an "Acceleration Event" means the happening of any of the following:

         (a)      When any "person" as defined in Section 3(a) (9) of the
                  Exchange Act and as used in Sections 13(d) and 14(d) thereof,
                  including a "group" as defined in Section 13(d) of the
                  Exchange Act, but excluding the Company or any subsidiary or
                  parent or any employee benefit plan sponsored or maintained by
                  the Company or any subsidiary or parent (including any trustee
                  of such plan acting as trustee), directly or indirectly,
                  becomes the "beneficial owner" (as defined in Rule 13d-3 under
                  the Exchange Act, as amended from time to time), of securities
                  of the Company representing 50 percent or more of the combined
                  voting power of the Company's then outstanding securities;

         (b)      When, during any period of 24 consecutive months during the
                  existence of the Plan, the individuals who, at the beginning
                  of such period, constitute the Board ("Incumbent Directors")
                  cease for any reason other than death to constitute at least a
                  majority thereof; provided, however, that a Director who was
                  not a Director at the beginning of such 24-month period will
                  be deemed to have satisfied such 24-month requirement (and be
                  an Incumbent Director) if such Director was elected by, or on
                  the recommendation or, or with the approval of, at least 60%
                  of the Directors who then qualified as Incumbent Directors
                  either actually (because they were Directors at the beginning
                  of such 24-month period) or by prior operation of this Section
                  13.5(b); or

         (c)      The approval by the shareholders of any sale, lease, exchange,
                  or other transfer (in one transaction or a series of related
                  transactions) of all or substantially all of the assets of the
                  Company or the adoption of any plan or proposal for the
                  liquidation or dissolution of the Company.

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A transaction shall not constitute an Acceleration Event if its sole purpose is
to change the state of the Company's incorporation or to create a holding
company that will be owned in substantially the same proportions by the persons
who held the Company's securities immediately before such transaction.

         13.6 Definition of "Potential Acceleration Event." For purposes of
Section 13.4, a "Potential Acceleration Event" means the approval by the Board
of a definitive agreement by the Company the consummation of which would result
in an Acceleration Event of the Company as defined in Section 13.5.

                      Article XIV. Securities Registration

         14.1 Securities Registration. In the event that the Company shall deem
it necessary or desirable to register under the Securities Act of 1933, as
amended, or any other applicable statute, any Options or any Stock with respect
to which an Option may be or shall have been granted or exercised, or to qualify
any such Options or Stock under the Securities Act of 1933, as amended, or any
other statute, then the Optionee shall cooperate with the Company and take such
action as is necessary to permit registration or qualification of such Options
or Stock.

         Unless the Company has determined that the following representation is
unnecessary, each person exercising an Option under the Plan may be required by
the Company, as a condition to the issuance of the shares pursuant to exercise
of the Option, to make a representation in writing (a) that he or she is
acquiring such shares for his or her own account for investment and not with a
view to, or for sale in connection with, the distribution of any part thereof,
(b) that before any transfer in connection with the resale of such shares, he or
she will obtain the written opinion of counsel for the Company, or other counsel
acceptable to the Company, that such shares may be transferred. The Company may
also require that the certificates representing such shares contain legends
reflecting the foregoing.

                           Article XV. Tax Withholding

         15.1 Tax Withholding. The Company shall have the power and the right to
deduct or withhold, or require an Optionee to remit to the Company, an amount
sufficient to satisfy Federal, state, and local taxes (including the Optionee's
FICA obligation) required by law to be withheld with respect to any grant,
exercise, or payment made under or as a result of the Plan. The Company shall
not be required to issue any Stock under the Plan until such obligations are
satisfied.

         15.2 Share Withholding. With respect to withholding required upon the
exercise of Options, or upon any other taxable event hereunder, Optionees may
elect, subject to the approval of the Committee and compliance with applicable
laws and regulations, to satisfy the withholding requirement, in whole or in
part, by having the Company withhold shares having a Fair Market Value, on the
date the tax is to be determined, equal to the minimum marginal tax which could
be imposed on the transaction.

                          Article XVI. Indemnification

         16.1 Indemnification. To the extent permitted by law, each person who
is or shall have been a member of the Committee or of the Board shall be
indemnified and held harmless by the Company against and from any loss, cost,
liability, or expense that may be imposed upon or reasonably incurred by him or
her in connection with or resulting from any claim, action, suit, or proceeding
to which he or she

                                       49
<PAGE>

may be a party or in which he or she may be involved by reason of any action
taken or failure to act under the Plan and against and from any and all amounts
paid by him or her in settlement thereof, with the Company's approval, or paid
by him or her in satisfaction of judgment in any such action, suit, or
proceeding against him or her, provided he or she shall give the Company an
opportunity, at its own expense, to handle and defend the same before he or she
undertakes to handle and defend it on his or her own behalf. The foregoing right
of indemnification shall not be exclusive of any other rights of indemnification
to which such persons may be entitled under the Company's articles of
incorporation or bylaws, as a matter of law, or otherwise, or any power that the
Company may have to indemnify them or hold them harmless.

                        Article XVII. Requirements of Law

         17.1 Requirements of Law. The granting of Options and the issuance of
shares of Stock upon the exercise of an Option shall be subject to all
applicable laws, rules, and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required.

         17.2 Governing Law. To the extent not preempted by federal law, the
Plan, and all agreements hereunder, shall be construed in accordance with and
governed by the laws of the State of Minnesota.

         17.3 Compliance with the Code. Incentive Stock Options granted
hereunder are intended to qualify as "incentive stock options" under Code
Section 422. If any provision of this Plan is susceptible to more than one
interpretation, such interpretation shall be given thereto as is consistent with
Incentive Stock Options granted under this Plan being treated as incentive stock
options under the Code.

                      Article XVIII. Effective Date of Plan

         18.1 Effective Date. Subject to Shareholder approval of the Plan, the
Plan shall be effective as of August 23, 1999, the date of its adoption by the
Board.

                  Article XIX. No Obligation to Exercise Option

         19.1 No Obligation to Exercise. The granting of an Option shall impose
no obligation upon the holder thereof to exercise such Option.

                     Article XX. Nonexclusivity of the Plan

         20.1 Nonexclusivity of the Plan. The adoption of this Plan will not be
construed as limiting the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including the granting of stock options
otherwise than under this Plan. Such arrangements may be either generally
applicable or applicable only in specific cases.

                                       50<PAGE>

                                                                     EXHIBIT 4.2

NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND SUCH
SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED UNLESS SO REGISTERED OR AN
EXEMPTION FROM REGISTRATION UNDER SAID ACT IS AVAILABLE. THIS LEGEND SHALL BE
ENDORSED UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT.

                    AMENDED AND RESTATED WARRANT AGREEMENT

                              FOR COMMON STOCK OF

                               drkoop.com, Inc.

Warrant No. BL-01

          THIS CERTIFIES that, for value received, ComVest Venture Partners
L.P., or its permitted assigns (collectively, the "Holder"), is entitled to
purchase from drkoop.com, Inc., a Delaware corporation (the "Company"), at any
time, and from time to time, during the exercise period referred to in Section 1
hereof 13,071,107 fully paid, validly issued and nonassessable shares (the
"Warrant Shares") of common stock of the Company, par value $0.001 (the "Common
Stock") at the exercise price of $0.35 per share, subject to anti-dilution
adjustments as provided herein (the "Warrant Share Price").  Securities issuable
upon exercise of this Warrant and the exercise price payable therefor are
subject to adjustment from time to time as hereinafter set forth.  As used
herein, the term "Warrant" shall include any warrant or warrants hereafter
issued in consequence of the exercise of this Warrant in part or transfer of
this Warrant in whole or in part. This Warrant is amending and restating Warrant
No. 00-01, issued to the Holder in connection with the funding of a bridge loan
(the "Bridge Loan") to the Company on June 23, 2000 and Warrant No. 00-03 issued
to the Holder in connection with entering into a credit agreement with the
Company on June 30, 2000 (the "Credit Agreement"). In addition, this Warrant is
being issued in connection with funding a loan on August 14, 2000 pursuant to
the Credit Agreement.  This Warrant and Warrants issued to Commonwealth
Associates, L.P. ("Commonwealth") in connection with the Bridge Loan and the
Credit Agreement, as they may be subject to adjustment from time to time, are
sometimes referred to collectively as the "CALP Warrants" and the shares
issuable upon the exercise hereof and thereof are sometimes referred to
collectively as the "CALP Warrant Shares."
<PAGE>

1.   Exercise; Payment for Ownership Interest.
     ----------------------------------------

          (a)  Upon the terms and subject to the conditions set forth herein,
this Warrant may be exercised in whole or in part by the Holder hereof at any
time, or from time to time, on or after November 1, 2000 (except in the event of
a Merger or Sale (as hereinafter defined), in which event this Warrant becomes
immediately exercisable as provided in Section 13 hereof) and prior to 5 p.m.
New York time on August 14, 2007, by presentation and surrender of this Warrant
to the principal offices of the Company, or at the office of its Transfer Agent
(as hereinafter defined), if any, together with the Purchase Form annexed
hereto, duly executed, and accompanied by payment to the Company of an amount
equal to the Warrant Share Price multiplied by the number of Warrant Shares as
to which this Warrant is then being exercised; provided, however, that in each
                                               --------  -------
case, the minimum number of Warrant Shares as to which this Warrant is being
exercised shall not be less than 1,000 Warrant Shares; provided, further, that
                                                       --------  -------
in the event of any merger, consolidation or sale of all or substantially all
the assets of the Company resulting in any distribution to the Company's
stockholders, prior to August 14, 2007, the Holder shall have the right to
exercise this Warrant commencing at such time through August 14, 2007 into the
kind and amount of shares of stock and other securities and property (including
cash) receivable by a holder of the number of shares of Common Stock into which
this Warrant might have been exercisable immediately prior thereto.  Any
transfer of Warrant Shares obtained by the Holder in exercise of this Warrant is
subject to the requirement that such securities be registered under the
Securities Act of 1933, as amended (the "1933 Act"), and applicable state
securities laws or exempt from registration under such laws.  The Holder of this
Warrant shall be deemed to be a shareholder of the Warrant Shares as to which
this Warrant is exercised in accordance herewith effective immediately after the
close of business on the date on which the Holder shall have delivered to the
Company this Warrant in proper form for exercise and payment by certified or
official bank check or wire transfer of the cash purchase price for the number
of Warrant Shares as to which the exercise is being made, notwithstanding that
the stock transfer books of the Company shall be then closed or that
certificates representing such Warrant Shares shall not then be physically
delivered to the Holder.

          (b)  All or any portion of the Warrant Share Price may be paid by
surrendering Warrants effected by presentation and surrender of this Warrant to
the Company, or at the office of its Transfer Agent, if any, with a Cashless
Exercise Form annexed hereto duly executed (a "Cashless Exercise").  Such
presentation and surrender shall be deemed a waiver by the Company of the
Holder's obligation to pay all or any portion of the aggregate Warrant Share
Price.  Except as provided in Section 3(b) below, in the event of a Cashless
Exercise, the Holder shall exchange its Warrant for that number of shares of
Common Stock determined by multiplying the number of Warrant Shares for which
the Holder desires to exercise this Warrant by a fraction, the numerator of
which shall be the difference between the then current market price per share of
the Common

                                       2
<PAGE>

Stock and the Warrant Share Price, and the denominator of which shall be the
then current market price per share of Common Stock. For purposes of any
computation under this Section 1(b), the then current market price per share of
Common Stock at any date shall be deemed to be the average for the ten
consecutive business days immediately prior to the Cashless Exercise of the
daily closing prices of the Common Stock on the principal national securities
exchange on which the Common Stock is admitted to trading or listed, or if not
listed or admitted to trading on any such exchange, the closing prices as
reported by the Nasdaq National Market or, if applicable, the Nasdaq SmallCap
Market, or if not then included for quotation on the Nasdaq National Market or
the Nasdaq SmallCap Market, the average of the highest reported bid and lowest
reported asked prices as reported by the OTC Bulletin Board or the National
Quotations Bureau, as the case may be, or if not then publicly traded, the fair
market price, not less than book value thereof, of the Common Stock as
determined in good faith by the independent members of the Board of Directors of
the Company.

          (c)  If this Warrant shall be exercised in part only, the Company
shall, upon surrender of this Warrant for cancellation, execute and deliver a
new Warrant evidencing the rights of the Holder thereof to purchase the balance
of the Warrant Shares purchasable hereunder as to which the Warrant has not been
exercised. If this Warrant is exercised in part, such exercise shall be for a
whole number of Warrant Shares. Upon any exercise and surrender of this Warrant,
the Company (i) will issue and deliver to the Holder a certificate or
certificates in the name of the Holder for the largest whole number of Warrant
Shares to which the Holder shall be entitled and, if this Warrant is exercised
in whole, in lieu of any fractional Warrant Share to which the Holder otherwise
might be entitled, cash in an amount equal to the fair value of such fractional
Warrant Share (determined in such reasonable and equitable manner as the Board
of Directors of the Company shall in good faith determine), and (ii) will
deliver to the Holder such other securities, properties and cash which the
Holder may be entitled to receive upon such exercise, or the proportionate part
thereof if this Warrant is exercised in part, pursuant to the provisions of this
Warrant.

2.   Anti-Dilution Provisions.  The Warrant Share Price in effect at any time
     ------------------------
and the number and kind of securities issuable upon exercise of this Warrant and
the Warrant Share Price shall be subject to adjustment from time to time upon
happening of certain events as follows:

     2.1  Reorganization, Reclassification, Consolidation, Merger or Sale. If
          ---------------------------------------------------------------
any capital reorganization, reclassification or any other change of capital
stock of the Company, or any consolidation or merger of the Company with another
person, or the sale or transfer of all or substantially all of its assets to
another person shall be effected in such a way that holders of shares of Common
Stock shall be entitled to receive stock, securities or assets with respect to
or in exchange for their shares of Common Stock, then provision shall be made by
the Company, in accordance with this Section 2.1, whereby the Holder hereof
shall thereafter have the right to purchase and receive, upon the basis

                                       3
<PAGE>

and upon the terms and conditions specified in this Warrant Agreement and in
addition to or in exchange for, as applicable, the Warrant Shares subject to
this Warrant immediately theretofore purchasable and receivable upon the
exercise of the rights represented hereby, such securities or assets as would
have been issued or payable with respect to or in exchange for the aggregate
Warrant Shares immediately theretofore purchasable and receivable upon the
exercise of the rights represented hereby if exercise of the Warrant had
occurred immediately prior to such reorganization, reclassification,
consolidation, merger or sale. The Company will not effect any such
consolidation, merger, sale, transfer or lease unless prior to the consummation
thereof the successor entity (if other than the Company) resulting from such
consolidation or merger or the entity purchasing such assets shall assume by
written instrument (i) the obligation to deliver to the Holder such securities
or assets as, in accordance with the foregoing provisions, the Holder may be
entitled to purchase, and (ii) all other obligations of the Company under this
Warrant; provided, however, that the failure to comply with the foregoing shall
not affect the validity or legality of such consolidation, merger, sale,
transfer or lease. The provisions of this Section 2.1 shall similarly apply to
successive consolidations, mergers, exchanges, sales, transfers or leases. In
the event that in connection with any such capital reorganization or
reclassification, consolidation, merger, sale or transfer, additional shares of
Common Stock shall be issued in exchange, conversion, substitution or payment,
in whole or in part, for a security of the Company other than Common Stock, any
such issue shall be treated as an issue of Common Stock covered by the
provisions of Section 2.2 hereof.

     2.2  Stock Dividends and Securities Distributions. If, at any time or from
          --------------------------------------------
time to time after the date of this Warrant, the Company shall distribute to the
holders of shares of Common Stock (i) securities (including rights, warrants,
options or another form of convertible securities), (ii) property, other than
cash, or (iii) cash, without fair payment therefor, then, and in each such case,
the Holder, upon the exercise of this Warrant, shall be entitled to receive such
securities, property and cash which the Holder would hold on the date of such
exercise if, on the date of the distribution, the Holder had been the holder of
record of the shares of Common Stock issued upon such exercise and, during the
period from the date of this Warrant to and including the date of such exercise,
had retained such shares of Common Stock and the securities, property and cash
receivable by the Holder during such period, subject, however, to the Holder
agreeing to any conditions to such distribution as were required of all other
holders of shares of Common Stock in connection with such distribution.

     2.3  Other Adjustments. In addition to those adjustments set forth in
          -----------------
Sections 2.1 and 2.2, but without duplication of the adjustments to be made
under such Sections, if the Company:

               (i)   declares or pays a dividend or makes a distribution on its
Common Stock in shares of its Common Stock;

                                       4
<PAGE>

               (ii)  subdivides or reclassifies its outstanding shares of Common
Stock into a greater number of shares;

               (iii) combines or reclassifies its outstanding shares of Common
Stock into a smaller number of shares;

               (iv)  makes a distribution on its Common Stock in shares of its
capital stock other than Common Stock; and/or

               (v)   issues, by reclassification of its Common Stock, any shares
of its capital stock;

then the number and kind of Warrant Shares purchasable upon exercise of this
Warrant shall be adjusted so that the Holder upon exercise hereof shall be
entitled to receive the kind and number of Warrant Shares or other securities of
the Company that the Holder would have owned or have been entitled to receive
after the happening of any of the events described above had this Warrant been
exercised immediately prior to the happening of such event or any record date
with respect thereto.  An adjustment made pursuant to this Section 2.3 shall
become effective immediately after the record date in the case of a dividend or
distribution and shall become effective immediately after the effective date in
the case of a subdivision, combination or issuance.  If, as a result of an
adjustment made pursuant to this Section 2.3, the Holder of this Warrant
thereafter surrendered for exercise shall become entitled to receive shares of
two or more classes of capital stock or shares of Common Stock and any other
class of capital stock of the Company, the Board of Directors (whose
determination shall be conclusive and shall be described in a written notice to
all holders of Warrants promptly after such adjustment) shall determine the
allocation of the adjusted Warrant Share Price between or among shares of such
classes of capital stock or shares of Common Stock and such other class of
capital stock.

          The adjustment to the number of Warrant Shares purchasable upon the
exercise of this Warrant described in this Section 2.3 shall be made each time
any event listed in paragraphs (i) through (v) of this Section 2.3 occurs.

          Simultaneously with all adjustments to the number and/or kind of
securities, property and cash under this Section 2.3 to be issued in connection
with the exercise of this Warrant, the Warrant Share Price will also be
appropriately and proportionately adjusted.

                                       5
<PAGE>

          In the event that at any time, as a result of an adjustment made
pursuant to this Section 2.3, the Holder of this Warrant thereafter shall become
entitled to receive any shares of the Company, other than Common Stock,
thereafter the number of such other shares so receivable upon exercise of this
Warrant shall be subject to adjustment from time to time in a manner and on
terms as nearly equivalent as practicable to the provisions with respect to the
Common Stock contained in Sections 2.1 and 2.2 above and Section 2.4 below.

     2.4  Sale of Securities.  In the event the Company, at any time after
          ------------------
August 14, 2000, issues or sells Common Stock, convertible preferred stock,
options, warrants, or other securities convertible into or exercisable for
Common Stock other than securities issued upon the conversion or exercise of any
securities outstanding as of August 14, 2000, or pursuant to the Agency
Agreement (as defined below) in connection with the Offering (as defined in the
Agency Agreement) or the transactions contemplated thereby, at a purchase price
("Purchase Price") less than the current market price per share of Common Stock
(determined in the manner contemplated by Section 1(b) above) on the date the
Company becomes obligated to make such issuance or sale, then the Warrant Share
Price shall be reduced to the price determined by multiplying the Warrant Share
Price in effect immediately prior to such issuance or sale by a fraction, the
numerator of which shall be the sum of (A) the number of shares of Common Stock
outstanding (exclusive of any treasury shares) immediately prior to such
issuance or sale multiplied by the current market price per share of Common
Stock on the date of such issuance or sale (determined in the manner
contemplated by Section 1(b) above), plus (B) the consideration received by the
Company upon such issuance or sale, and the denominator of which shall be the
product of (X) the total number of shares of Common Stock outstanding (exclusive
of any treasury shares) immediately after such issuance or sale, multiplied by
(Y) the current market price per share of Common Stock on the date of such
issuance or sale (determined in the manner contemplated by Section 1(b) above),
unless the Purchase Price is below the Warrant Share Price in effect immediately
prior to such issuance or sale, in which event the Warrant Share Price shall be
automatically reduced to such lower Purchase Price;

provided, however, that no adjustment to the Warrant Share Price or the number
--------  -------
and kind of Warrant Shares shall be made pursuant to this Section 2.4 in the
event (i) the Company grants options to employees, officers, directors or
consultants of the Company pursuant to contracts or plans approved by the Board
of Directors of the Company, (ii) of the issuance of securities to a "strategic
partner" as determined by the Board of Directors of the Company (which shall
include without limitation any securities issued to Infoseek Corporation or its
affiliates pursuant to that certain (1) Distribution Agreement by and between
the Company and Infoseek, ABC News Internet Ventures and ESPN Internet Ventures
(the "Go.com Parties") Corporation dated April 19, 1999; (2) Distribution
      --------------
Agreement by and between the Company and Buena Vista Internet Group ("BVIG")
                                                                      ----
dated April 9, 1999 and (3) Amendment dated April 20, 2000 by and between the
Company, the Go.com parties and BVIG), (iii) the Company pays a dividend payable
in

                                       6
<PAGE>

Common Stock, (iv) of the issuance of securities pursuant to an acquisition
transaction approved by the Board of Directors of the Company, (v) of the
issuance of warrants to lenders or lessors or other business partners of the
Company or the issuance of securities to trade creditors in connection with the
restructuring of their claims, (vi) the issuance of any securities (the "Issued
Securities") upon exercise or conversion of any derivative securities pursuant
to the Agency Agreement, as amended, dated as of June 23, 2000 by and between
the Company and Commonwealth (the "Agency Agreement") in connection with the
Offering or the transactions contemplated thereby, including, without
limitation, any subsequent adjustment in any such Issued Securities or any
securities issued in respect thereof, or (vii) of the issuance of up to an
aggregate of 500,000 shares (as appropriately adjusted for stock splits, stock
dividends, and similar adjustments after the Issuance Date) of Common Stock (or
convertible preferred stock, options, warrants or other securities convertible
into or exercisable for Common Stock) at a purchase price less than the Warrant
Share Price and not otherwise excepted pursuant to clauses (i) through (vi)
above.

          (a)  For the purpose of making any adjustment in the Warrant Share
Price as provided in this Section 2.4, the consideration received by the Company
for any issue or sale of Common Stock will be computed:

               (i)   to the extent it consists of cash, as the amount of cash
received by the Company before deduction of any offering expenses payable by the
Company and any underwriting or similar commissions, compensation, or
concessions paid or allowed by the Company in connection with such issue or
sale;

               (ii)  to the extent it consists of property other than cash, at
the fair market value of that property as determined in good faith by the
Company's Board of Directors (irrespective of the accounting treatment thereof);
and

               (iii) if Common Stock is issued or sold together with other stock
or securities (including convertible preferred stock, options, warrants or
securities convertible into or exchangeable for common stock) or other assets of
the Company for a consideration which covers both, as the portion of the
consideration so received that may be reasonably determined in good faith by the
Company's Board of Directors to be allocable to such Common Stock; provided,
                                                                   --------
however, that with respect to such other stock or securities, such consideration
-------
as determined by the Company's Board of Directors shall not be less than the
total consideration received by the Company for the issuance of such other stock
or securities plus the additional aggregate consideration, if any, to be
received by the Company upon conversion or exchange thereof.

          (b)  If the Company (i) issues, grants or sells any rights or options
to subscribe for, purchase, or otherwise acquire shares of Common Stock, or (ii)
issues or sells any security convertible into shares of Common Stock, then, in
each case, the price per share of Common Stock issuable on the exercise of the
rights or options or the conversion of the securities will be determined by
dividing (x) the total amount, if any,

                                       7
<PAGE>

received or receivable by the Company as consideration for the granting or sale
of the rights or options or the issue or sale of the convertible securities
(before fees and expenses), plus the minimum aggregate amount of additional
consideration payable to the Company on exercise or conversion of the
securities, by (y) the maximum number of shares of Common Stock issuable on the
exercise of conversion. Such granting or issue or sale will be considered to be
an issue or sale for cash of the maximum number of shares of Common Stock
issuable on exercise or conversion at the price per share determined under this
Section 2.4, and the Warrant Share Price will be adjusted as above provided to
reflect (on the basis of that determination) the issue or sale. No further
adjustment of the Warrant Share Price will be made as a result of the actual
issuance of shares of Common Stock on the exercise of any such rights or options
or the conversion of any such convertible securities.

          (c)  Upon the redemption or repurchase of any such securities or the
expiration or termination of the right to convert into, exchange for, or
exercise with respect to, Common Stock, the Warrant Share Price will be
readjusted to such price as would have been obtained had the adjustment made
upon their issuance been made upon the basis of the issuance of only the number
of such securities as were actually converted into, exchanged for, or exercised
with respect to, Common Stock. If the purchase price or conversion or exchange
rate provided for in any such security changes at any time, then, upon such
change becoming effective, the Warrant Share Price then in effect will be
readjusted to such price as would have been obtained had the adjustment made
upon the issuance of such securities been made upon the basis of (i) the
issuance of only the number of shares of Common Stock theretofore actually
delivered upon the conversion, exchange or exercise of such securities, and the
total consideration received therefor, and (ii) the granting or issuance, at the
time of such change, of any such securities then still outstanding for the
consideration, if any, received by the Company therefor and to be received on
the basis of such changed price or rate.

     2.5  Notice of Adjustments. Upon the occurrence of each adjustment or
          ---------------------
readjustment of the Warrant Share Price pursuant to this Section 2, the Company
at its expense will promptly compute such adjustment or readjustment in
accordance with the terms of this Warrant and prepare a certificate setting
forth such adjustment or readjustment, including a statement of the adjusted
Warrant Share Price or adjusted number of shares of Common Stock, if any,
issuable upon exercise of each Warrant, describing the transaction giving rise
to such adjustments and showing in detail the facts upon which such adjustment
or readjustment is based.  The Company will forthwith mail, by first class mail,
postage prepaid, a copy of each such certificate to the Holder of this Warrant
at the address of such Holder as shown on the books of the Company, and to its
Transfer Agent.

                                       8
<PAGE>

     2.6  Other Notices.  If at any time:
          -------------

          (a)  the Company shall (i) offer for subscription pro rata to the
holders of shares of the Common Stock any additional equity in the Company or
other rights; (ii) pay a dividend in additional shares of the Common Stock or
distribute securities or other property to the holders of shares of the Common
Stock (including, without limitation, evidences of indebtedness and equity and
debt securities); or (iii) issue securities convertible into, or rights or
warrants to purchase, securities of the Company;

          (b)  there shall be any capital reorganization or reclassification or
consolidation or merger of the Company with, or sale, transfer or lease of all
or substantially all of its assets to, another entity; or

          (c)  there shall be a voluntary or involuntary dissolution,
liquidation or winding up of the Company;

then, in any one or more of said cases, the Company shall give, by first class
mail, postage prepaid, to the Holder of this Warrant at the address of such
Holder as shown on the books of the Company, (a) at least 15 days' prior written
notice of the date on which the books of the Company shall close or a record
shall be taken for such subscription rights, dividend, distribution or issuance,
and (b) in the case of any such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation or winding up, at least 15 days' prior
written notice of the date when the same shall take place if no stockholder vote
is required and at least 15 days' prior written notice of the record date for
stockholders entitled to vote upon such matter if a stockholder vote is
required.  Such notice in accordance with the foregoing clause (a) shall also
specify, in the case of any such subscription rights, the date on which the
holders of shares of Common Stock shall be entitled to exercise their rights
with respect thereto, and such notice in accordance with the foregoing clause
(b) shall also specify the date on which the holders of shares of Common Stock
shall be entitled to exchange their shares of Common Stock for securities or
other property deliverable upon such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding up, as the case
may be.  Failure to give the notice referred to herein shall not affect the
validity or legality of the action which should have been the subject of the
notice.

     2.7  No adjustment in the Warrant Share Price shall be required unless such
adjustment would require an increase or decrease of at least one cent ($0.01) in
such price; provided, however, that any adjustments which by reason of this
            --------  -------
Section 2.8 are not required to be made shall be carried forward and taken into
account in any subsequent adjustment required to be made hereunder.  All
calculations under this Section 2 shall be made to the nearest cent or to the
nearest one-hundredth of a share, as the case may be.

3.   Re-set of Warrant Share Price.  In the event that the average closing bid
     -----------------------------
price for the Company's Common Stock for the 20 trading days preceding the two-
year

                                       9
<PAGE>

anniversary of the date hereof is less than the Warrant Share Price, then the
Warrant Share Price shall be automatically reset to such lower price.

4.   No Voting Rights. This Warrant shall not be deemed to confer upon the
     ----------------
Holder any right to vote or to consent to or receive notice as a stockholder of
the Company, as such, in respect of any matters whatsoever, or any other rights
or liabilities as a stockholder, prior to the exercise hereof.

5.   Warrants Transferable. This Warrant and all rights hereunder are
     ---------------------
transferable, in whole or in part, at the principal offices of the Company by
the Holder hereof, upon surrender of this Warrant properly endorsed; provided,
                                                                     --------
however, that in each case the minimum number of Warrant Shares being
-------
transferred by the Holder shall not be less than 1,000 Warrant Shares; provided,
further, that without the prior written consent of the Company, this Warrant and
all rights hereunder may be transferred only (i) to an affiliate of the initial
Holder hereof or successor in interest to any such person in a transaction
exempt from registration under the 1933 Act, provided that the Company receives
an opinion of counsel that such transfer may be effected without registration
under the 1933 Act; or (ii) pursuant to the registration of this Warrant or the
Warrant Shares under the 1933 Act or subsequent to one year from the date hereof
pursuant to an available exemption from such registration.  It shall be a
condition to transfer of this Warrant that the transferee agrees to be bound by
the restrictions on transfer contained in Section 3(b)(ix) of the Agency
Agreement.  Further, the Holder hereby covenants that it will not pledge or
otherwise enter into any transaction or device which is designed to (including,
without limitation, through entering into a cash-settled derivative instrument)
result in the sale of any warrant Shares prior to the effective date of a
registration statement relating to the resale of the Warrant Shares.  It shall
be a condition to transfer of this Warrant that the transferee agrees to be
bound by the restrictions on transfer contained in the previous sentence.

6.   Warrants Exchangeable; Assignment; Loss, Theft, Destruction, Etc.  This
     -----------------------------------------------------------------
Warrant is exchangeable, without expense, upon surrender hereof by the Holder
hereof at the principal offices of the Company, or at the office of its Transfer
Agent, if any, for new Warrants of like tenor representing in the aggregate the
right to subscribe for and purchase the Warrant Shares which may be subscribed
for and purchased hereunder, each such new Warrant to represent the right to
subscribe for and purchase such Warrant Shares as shall be designated by such
Holder hereof at the time of such surrender. Upon surrender of this Warrant to
the Company at its principal office, or at the office of its Transfer Agent, if
any, with an instrument of assignment duly executed and funds sufficient to pay
any transfer tax, the Company shall, without charge, execute and deliver a new
Warrant in the name of the assignee named in such instrument of assignment and
this Warrant shall promptly be cancelled.  This Warrant may be divided or
combined with other warrants which carry the same rights upon presentation
hereof at the principal office of the Company, or at the office of its Transfer
Agent, if any, together with a written notice specifying the names and
denominations in which new Warrants are to be

                                       10
<PAGE>

issued and signed by the Holder hereof. The term "Warrant" as used herein
includes any Warrants into which this Warrant may be divided or exchanged. Upon
receipt of evidence satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant and, in the case of any such loss, theft or
destruction, upon delivery of a bond or indemnity satisfactory to the Company,
or, in the case of any such mutilation, upon surrender or cancellation of this
Warrant, the Company will issue to the Holder hereof a new Warrant of like
tenor, in lieu of this Warrant, representing the right to subscribe for and
purchase the Warrant Shares which may be subscribed for and purchased hereunder.
Any such new Warrant executed and delivered shall constitute an additional
contractual obligation of the Company, whether or not this Warrant so lost,
stolen, destroyed, or mutilated shall be at any time enforceable by anyone.

7.   Legends; Investment Representations.
     -----------------------------------

          (a)  Any certificate evidencing the securities issued upon exercise of
this Warrant shall bear a legend in substantially the following form:

          THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
     REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND
     SUCH SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED UNLESS SO
     REGISTERED OR AN EXEMPTION FROM REGISTRATION UNDER SAID ACT IS AVAILABLE.

          IT SHALL BE A CONDITION TO TRANSFER OF THE SECURITIES REPRESENTED BY
     THIS CERTIFICATE THAT THE TRANSFEREE AGREES TO BE BOUND BY THE RESTRICTIONS
     ON TRANSFER CONTAINED IN SECTION 3(B)(IX) OF THAT CERTAIN AGENCY AGREEMENT
     DATED JUNE 23, 2000 BY AND BETWEEN DRKOOP.COM, INC. (THE "CORPORATION") AND
     COMMONWEALTH ASSOCIATES, L.P. (A COPY OF WHICH IS ON FILE WITH THE
     SECRETARY OF THE CORPORATION).

          IT SHALL BE A CONDITION TO TRANSFER OF THE SECURITIES REPRESENTED BY
     THIS CERTIFICATE THAT THE TRANSFEREE AGREES TO BE BOUND BY THE RESTRICTIONS
     ON TRANSFER CONTAINED IN SECTION 5 OF THAT CERTAIN DRKOOP.COM, INC. WARRANT
     AGREEMENT NO. BL-01 (A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE
     CORPORATION).

          (b)  The Holder hereby represents that it is purchasing this Warrant
for its own account for investment and not with the view to or for sale in
connection with the distribution of this Warrant, nor with any present intention
of selling or otherwise disposing of all or any part of this Warrant. The Holder
hereby represents that it understands that there may not be any market for this
Warrant or the Warrant Shares. The Holder hereby agrees that (1) the purchase of
this Warrant is a long-term investment,

                                       11
<PAGE>

(2) the Holder may have to bear the economic risk of investment for an
indefinite period of time because neither this Warrant nor the Warrant Shares
has been registered under the Securities Act and, cannot be resold, pledged,
assigned or otherwise disposed of unless they are subsequently registered under
said Securities Act and under applicable securities laws of certain states or an
exemption of such registration is available and (3) the Holder is an accredited
investor as defined in Rule 501 promulgated under the 1933 Act. The Holder
hereby represents that it understands that the Company is under no obligation to
register this Warrant and, except as set forth in a Registration Rights
Agreement dated the date hereof, the Company is under no obligation to register
the Warrant Shares. The Holder shall be deemed to reaffirm the foregoing
investment representations at such time the Holder exercises this Warrant.

8.   Modifications and Waivers. The terms of the Warrants may be amended,
     -------------------------
modified or waived only by the written agreement of the Company and the Holder.

9.   Miscellaneous. The Company shall pay all expenses and other charges payable
     -------------
in connection with the preparation, issuance and delivery of this Warrant and
all substitute Warrants.  The Holder shall pay all taxes (other than any
issuance taxes, including, without limitation, documentary stamp taxes, transfer
taxes and other governmental charges, which shall be paid by the Company) in
connection with such issuance and delivery of this Warrant and the Warrant
Shares.

          The Company shall maintain, at the office or agency of the Company
maintained by the Company, books for the registration and transfer of the
Warrant.

10.  Reservation of Warrant Shares. Following the filing of the Amendment (as
     -----------------------------
defined below), the Company will at all times reserve and keep available, free
from preemptive rights, out of the aggregate of its authorized but unissued
Common Stock or its authorized and issued Common Stock held in its treasury,
solely for the purpose of enabling it to satisfy any obligation to issue Warrant
Shares upon exercise of this Warrant, the maximum number of shares of Common
Stock which may then be deliverable upon the exercise of this Warrant.  It is
understood that after reserving the number of shares of Common Stock issuable
upon conversion of the Preferred Stock issuable in the Maximum Offering (as such
terms are defined in the Agency Agreement),  the Company does not have a
sufficient number of shares of Common Stock authorized and available for
issuance upon exercise of this Warrant and therefore intends to increase the
number of shares of Common Stock it is authorized to issue.  The Company shall
use its reasonable best efforts to seek stockholder approval of and an amendment
to its certificate of incorporation to increase the number of authorized shares
of Common Stock so that the Company may legally issue the Warrant Shares.

          The Company or, if appointed, the Transfer Agent for the Common Stock
(the "Transfer Agent") and every subsequent transfer agent for any shares of the
Company's capital stock issuable upon the exercise of any of the rights of
purchase aforesaid will be irrevocably authorized and directed at all times to
reserve such number

                                       12
<PAGE>

of authorized shares as shall be required for such purpose. The Company will
keep a copy of this Warrant on file with the Transfer Agent and with every
subsequent transfer agent for any shares of the Company's capital stock issuable
upon the exercise of the rights of purchase represented by this Warrant. The
Company will furnish such Transfer Agent a copy of all notices of adjustments
and certificates related thereto transmitted to the Holder pursuant to Section
2.6 hereof.

          The Company covenants that all Warrant Shares which may be issued upon
exercise of this Warrant will, upon issue, be fully paid, nonassessable, free of
preemptive rights and free from all taxes, liens, charges and security interests
with respect to the issue thereof.

11.  Registration.  The Holder shall be entitled to demand and "piggyback"
     ------------
registration rights with respect to the Warrant Shares, as set forth in an
amended and restated registration rights agreement dated August 22, 2000.

12.  Descriptive Headings and Governing Law.  The descriptive headings of the
     --------------------------------------
several 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 the laws of the State of New York, and the rights of the
parties shall be governed by, the law of such State.

13.  Redemption.
     ----------

          (a)  In the event of a Merger or Sale (as hereinafter defined), the
holders of CALP Warrants representing a majority of the CALP Warrant Shares
issuable upon exercise of the CALP Warrants outstanding (the "Majority Holders")
may, at their election, cause the Company to redeem the CALP Warrants
outstanding at a redemption price of $0.25 per Warrant (the "Redemption Price")
on the date such Merger or Sale is consummated (the "Redemption Date"). For
purposes of this Section 13, the term "merger" shall mean a merger or
consolidation of the Company with or into another corporation or other entity
where the stockholders of the Company immediately prior to such event do not
retain more than a 50% voting power and interest in the Company or the successor
corporation or other entity, as the case may be; and the term Sale shall mean
the sale of all or substantially all of the Company's assets.

          (b)  No later than 20 days before the consummation of any Merger or
Sale, the Company shall deliver a notice to the Holder setting forth the
principal terms of such Merger or Sale (the "Merger/Sale Notice"). Such notice
shall include a description of the estimated amounts that would be paid to the
Holder if (i) the Majority Holders exercise their redemption rights or (ii) the
Holder exercises this Warrant to purchase Common Stock as provided in Section
13(d) hereof. The Company shall thereafter give the Holder prompt notice of any
material changes to the terms of the Merger or Sale

                                       13
<PAGE>

          (c)  In order to exercise their right to require the Corporation to
redeem the CALP Warrants, the Majority Holders shall deliver written notice to
the principal executive office of the Company of their election to require
redemption within 10 days following the receipt of the Merger/Sale Notice. If no
such notice is given, this Warrant shall become immediately exercisable and the
Holder shall receive upon the exercise hereof such consideration as is provided
for in Section 13(d).

          (d)  In the event the Majority Holders do not elect to require the
redemption of the CALP Warrants outstanding upon a Merger or Sale, this Warrant
shall become immediately exercisable by the Holder into the number of shares of
stock or other securities or property to which a holder of the number of shares
of Common Stock of the Corporation deliverable upon exercise of this Warrant
would have been entitled upon such Merger or Sale.

          (e)  In the event the Majority Holders elect to require the redemption
of the CALP Warrants outstanding, from and after the Redemption Date, the
Company shall, upon presentation and surrender to the Company by or on behalf of
the Holder of this Warrant, deliver or cause to be delivered to or upon the
written order of the Holder, at the sole discretion of the Company, the
Redemption Price for this Warrant in cash or a number of shares of Common Stock
with a value equal to the Redemption Price of this Warrant (the "Stock Payment
Election"). The redemption shall be effected by the Company immediately prior to
the consummation of the Merger or Sale. For purposes of any Stock Payment
Election, the value of a share of Common Stock shall be equal to the average
closing bid price for the 30 consecutive trading days preceding the date of
first public announcement of the transaction subject of the Merger/Sale Notice.
From and after the Redemption Date, unless there shall have been a default in
payment of the Redemption Price, this Warrant shall expire and become void and
all rights hereunder, except the right to receive payment of the Redemption
Price, shall cease. If not redeemed, this Warrant shall remain outstanding and
entitled to all the rights hereunder.

                           [SIGNATURE PAGE FOLLOWS]

                                       14
<PAGE>

IN WITNESS WHEREOF, this Warrant Agreement has been executed as of the 22nd day
of August, 2000.

                                        drkoop.com, Inc.

                                        By: /s/ Donald W. Hackett
                                           --------------------------------
                                            Name:  Donald W. Hackett
                                            Title: Chief Executive Officer

                                       15
<PAGE>

                                 PURCHASE FORM

                                                          Dated:__________, ____

          The undersigned hereby irrevocably elects to exercise the within
Warrant to the extent of purchasing _____ Warrant Shares and hereby makes
payment of $_____________ in payment of the exercise price thereof.  The
undersigned further confirms that the representations and warranties contained
in Section 7(b) of the Warrant are true and correct as of the date hereof.

                                       _________________________________________

                                       16
<PAGE>

                               CASHLESS EXERCISE

                                                          Dated:__________, ____

          The undersigned irrevocably elects to exercise the within Warrant for
Warrant Shares and hereby makes payment pursuant to the Cashless Exercise
provision of the within Warrant, and directs that the payment of the Warrant
Share Price be made by cancellation as of the date of exercise of a portion of
the within Warrant in accordance with the terms and provisions of Section 1(b)
of the within Warrant.

                                       _________________________________________

                                       17

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