Document:

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                                                                   EXHIBIT 10.63

                           GENERAL SECURITY AGREEMENT

     SECURITY AGREEMENT, dated as of June 23, 2000 (the "Agreement"), by and
among Commonwealth Associates, L.P., a New York limited partnership with offices
at 830 Third Avenue, New York, NY 10022 ("Commonwealth"), ComVest Venture
Partners, L.P., a Delaware limited partnership with offices at 830 Third Avenue,
New York, New York 10022 ("ComVest," and with Commonwealth, the "Secured
Parties") and drkoop.com, Inc., a Delaware corporation with offices at 7000 N.
Mopac, Suite 400, Austin, Texas  78731 (the "Debtor");

                              W I T N E S S E T H:

     WHEREAS on the date hereof the Secured Parties are lending the Debtor
$1,500,000, pursuant to the 8% senior secured promissory notes (herein
collectively, as each may be amended, extended, restated, renewed or modified,
the "Notes") issued to the Secured Parties; and

     WHEREAS, the Debtor, on the date hereof, (i) issued and sold to the Secured
Parties those certain warrants to purchase 4,000,000 shares of Common Stock of
the Debtor (herein, as at any time amended, extended, restated, renewed or
modified, the "Warrants") and (ii) executed and delivered for the benefit of the
Secured Parties that certain Registration Rights Agreement by and among the
Debtor and the Secured Parties (herein, as at any time amended, extended,
restated, renewed or modified, the "Registration Rights Agreement"); and

     WHEREAS, it is a condition to the willingness of the Secured Parties to
make the loan evidenced by the Notes that the Debtor enter into this Agreement
and grant to the Secured Parties the security interest provided for herein.

     NOW, THEREFORE, FOR VALUE RECEIVED, IT IS AGREED:

     Section 1. Terms. Unless otherwise defined herein, capitalized terms used
in this Agreement shall have the meaning specified therefor in the Notes, as
indicated. As used herein the following terms shall have the meanings specified
and shall include in the singular number the plural and in the plural number the
singular:

     "Assigned Agreement Interest" shall mean the profits, proceeds, or other
rights to payment of the Debtor under or from the performance, assignment, sale
or disposition of all contracts and agreements of the Debtor.

     "Code" shall mean the Uniform Commercial Code as the same may, from time to
time, be enacted and in effect in the State of New York; provided, however, in
the event that, by reason of mandatory provisions of law, any or all of the
attachment, perfection or priority of the Secured Parties' security interest in
any Collateral is governed by the Uniform Commercial Code as enacted and in
effect in a jurisdiction other than the State of New York, the term "Code" shall
mean the Uniform Commercial Code as enacted and in effect in such other
jurisdiction solely for purposes of the provisions hereof relating to such
attachment, perfection or priority and for purposes of definitions related to
such provisions.
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     "Collateral" means all of the Debtor's right, title and interest in and
under or arising out of each and all of the following:

     All personal property and fixtures of the Debtor of any type or
description, wherever located and now existing or hereafter arising or acquired,
including but not limited to the following:

     (i) all of the Debtor's goods including, without limitation

          (a) all inventory, including without limitation, equipment held for
lease, whether raw materials, in process or finished, all material or equipment
usable in processing the same and all documents of title covering any inventory
(all of the foregoing, "Inventory"), including without limitation that located
at the locations listed on Schedule 1 annexed hereto;

          (b) all equipment (the "Equipment") employed in connection with the
Debtor's business, together with all present and future additions, attachments
and accessions thereto and all substitutions therefor and replacements thereof,
including without limitation that located at the locations listed on Schedule 1
annexed hereto;

     (ii) all of the Debtor's present and future accounts, accounts receivable,
general intangibles, contracts and contract rights (herein sometimes referred to
as "Receivables"), including but not limited to the Debtor's rights to payment
and the Assigned Agreement Interest, together with

          (a) all claims, rights, powers or privileges and remedies of the
Debtor relating thereto or arising in connection therewith including, without
limitation, all rights of the Debtor to make determinations, to exercise any
election (including, but not limited to, election of remedies) or option or to
give or receive any notice, consent, waiver or approval, together with full
power and authority to demand, receive, enforce or collect for any of the
foregoing or any property which is the subject of the Assigned Agreement
Interest, to enforce or execute any checks, or other instruments or orders, to
file any claims and to take any action which (in the opinion of the Secured
Parties) may be reasonably necessary or advisable in connection with any of the
foregoing,

          (b) all liens, security, guaranties, endorsements, warranties and
indemnities and all insurance and claims for insurance relating thereto or
arising in connection therewith,

          (c) all rights to property forming the subject matter of the
Receivables including, without limitation, rights to stoppage in transit and
rights to, returned or repossessed property,

          (d) all writings relating thereto or arising in connection therewith
including, without limitation, all notes, contracts, security agreements,
guaranties, chattel paper and other evidence of indebtedness or security, all
powers-of-attorney, all books, records, ledger cards and invoices, all credit
information, reports or memoranda and all evidence of filings or registrations
relating thereto,
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          (e) all catalogs, computer and automatic machinery software and
programs, and the like pertaining, to operations by the Debtor in, on or about
any of their plants or warehouses, all sales data and other information relating
to sales or service of products now or hereafter manufactured on or about any of
its plants, and all accounting information pertaining to operations in, on or
about any of its plants, and all media in which or on which any of the
information or knowledge or data is stored or contained, and all computer
programs used for the compilation or printout of such information, knowledge,
records or data, and

          (f) all accounts, contract rights, general intangibles and other
property rights of any nature whatsoever arising out of or in connection with
the foregoing, including without limitation, payments due and to become due,
whether as part of the Assigned Agreement Interest or as repayments,
reimbursements, contractual obligations, indemnities, damages or otherwise;

     (iii)  all of the Debtor's right, title, and market in and to any shares of
capital stock of any of its subsidiaries and the certificates representing any
such shares;

     (iv) all patents, trademarks, trade secrets, copyrights, rights to hardware
or software, and any other intellectual property rights of any description
whatsoever, whether owned or licensed by the Debtor;

     (v) all other personal property of the Debtor of any nature whatsoever,
including, without limitation, all accounts, bank accounts, deposits, credit
balances, contract rights, inventory, general intangibles, goods, equipment,
instruments, chattel paper, machinery, furniture, furnishings, fixtures, tools,
supplies, appliances, plans and drawings, together with all customer and
supplier lists and records of the business, and all property from time to time
described in any financing statement (UCC-1) signed by the Debtor naming the
Secured Parties as secured party;

     (vi) all "documents," as such term is defined in the Code, now owned or
hereafter acquired by the Debtor, wherever located;

     (vii)  all "fixtures" as such term is defined in the Code, now owned or
hereafter acquired by the Debtor;

     (viii)  all "instruments" as such term is defined in the Code, now owned or
hereafter acquired by the Debtor, wherever located, and, in any event, including
all certificated securities, all certificates of deposit, and all notes and
other, without limitation, evidences of indebtedness, other than instruments
that constitute, or are a part of a group of writings that constitute, chattel
paper to the extent covered by paragraph (v) above;

     (ix) all  "investment property" as described in Section 9-115 of the Code
in those jurisdictions in which such definition has been adopted and shall
include (a) all securities, whether certificated or uncertificated, including
stocks, bonds, interests in limited liability companies, partnership interests,
treasuries, certificates of deposit, and mutual fund shares; (b) all securities
entitlements of the Debtor, including the rights of the Debtor to any securities
account and the financial assets held by a securities intermediary in such
securities account and any free credit
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balance or other money owing by any securities intermediary with respect to that
account; (c) all securities accounts held by the Debtor; (e) all commodity
contracts held by the Debtor; and (d) all commodity accounts held by the Debtor;
and

     (x) all items of collateral hereafter acquired, credited or arising and all
additions, accessions, replacements, substitutions or improvements and all
products and proceeds including, without limitation, proceeds of insurance, of
any and all of the Collateral described in clauses (i) through (iv) above.

     Notwithstanding anything to the contrary set forth above, the Collateral
shall not include any rights or interests in and to any contract, lease, permit,
license, license agreement or other agreement or personal property covered
thereby, if under the terms of such contract, lease, permit, license, license
agreement or other agreement, or applicable law with respect thereto, the valid
grant of a security interest or Lien therein to the Secured Parties, or any
assignment or transfer thereof to the Secured Parties, is prohibited and such
prohibition has not been or is not waived or the consent of the other party to
such contract, lease, permit, license, license agreement or other agreement has
not been or is not otherwise obtained (and nothing herein shall require the
Debtor to seek any such waiver or consent) or under applicable law such
prohibition cannot be waived; provided that (i) the foregoing exclusion shall in
no way be construed so as to limit, impair or otherwise affect the Secured
Parties' unconditional continuing security interests in and Liens upon any
rights or interests of the Debtor in or to monies due or to become due under any
such contract, lease, permit, license, or license agreement, (ii) the foregoing
exclusion shall not apply with respect to any such Collateral once any such
applicable prohibition is no longer in effect and (iii) the Debtor on or after
the date hereof shall use commercially reasonable efforts to not enter into any
such contract, lease, license or licensing agreement containing any such
prohibition, which are, either individually or in the aggregate, material to the
operation of its business.

     "Lien" means any mortgage, pledge, hypothecation, assignment, security
interest, deposit arrangement, encumbrance (including any easement, right of
way, zoning restriction and the like), lien (statutory or other) or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including any conditional sale or other title retention
agreement, any financing lease involving substantially the same economic effect
as any of the foregoing and the filing of any financing statement under the Code
or comparable law of any jurisdiction).

     "Permitted Liens" means:

     (a) Liens for taxes, assessments or other governmental charges or levies
not at the time delinquent or thereafter payable without penalty or being
contested in good faith by appropriate proceedings and for which adequate
reserves in accordance with generally accepted accounting principles shall have
been set aside on its books;

     (b) Liens of carriers, warehousemen, mechanics, materialman and landlords
incurred in the ordinary course of business for sums not overdue or being
contested in good faith by appropriate proceedings and for which adequate
reserves shall have been set aside on its books;
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     (c) Liens (other than Liens arising under the Employee Retirement Income
Security Act of 1974, as amended, or Section 412(n) of the Internal Revenue Code
of 1986, as amended) incurred in the ordinary course of business in connection
with workers' compensation, unemployment insurance or other forms of
governmental insurance or benefits, or to secure performance of tenders,
statutory obligations, leases and contracts and other similar obligations (other
than for borrowed money) entered into in the ordinary course of business or to
secure obligations on surety or appeal bonds;

     (d) Judgment Liens in existence less than 60 days after the entry thereof
or with respect to which execution has been stayed or which do not exceed
$50,000 in the aggregate;

     (e) Ground leases in respect of real property on which facilities owned or
leased by the Debtor or any of its subsidiaries are located;

     (f) Easements, rights-of-way, restrictions, minor defects or irregularities
in title and other similar charges or encumbrances not interfering in any
material respect with the business of the Debtor;

     (g) Any interest or title of a lessor secured by a lessor's interest under
any lease of real property on which facilities owned or leased by the Debtor are
located;

     (h) Leases or subleases granted to others not interfering in any material
respect with the businesses of the Debtor;

     (i) A Lien on any asset securing indebtedness (including capitalized lease
obligations) incurred or assumed for the purpose of financing the purchase price
(including capitalized lease payments in the nature thereof) of such asset,
provided that such Lien attaches only to the asset acquired with the proceeds of
such indebtedness and attaches concurrently with or within ten (10) days
following the acquisition thereof; and

     (j) A Lien existing on the date hereof but only to the extent and as
expressly disclosed in Schedule 7F annexed to the Notes.

     "Person" means any natural person, corporation, firm, association,
partnership, joint venture, limited liability company, joint-stock company,
trust, unincorporated organization, government, governmental agency or
subdivision, or any other entity, whether acting in an individual, fiduciary or
other capacity.

     "Receivables" has the meaning specified therefor in clause (ii) of the
definition of Collateral.

     "Secured Obligations" means all obligations of the Debtor, whether for
fees, expenses or otherwise, now existing or hereafter arising under this
Agreement or the Notes.
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     Section 2. Security Interests. As security for the payment and performance
of all Secured Obligations the Debtor does hereby grant and assign to the
Secured Parties a continuing security interest in all of the Collateral, whether
now existing or hereafter arising or acquired and wherever located.

     Section 3. General Representations. Warranties and Covenants. The Debtor
represents, warrants and covenants, which representations, warranties and
covenants shall survive execution and delivery of this Agreement, as follows:

     (a) Except for the security interest of the Secured Parties therein, the
Debtor is, and as to Collateral acquired from time to time after the date hereof
the Debtor will be, the owner of all the Collateral free from any lien, security
interest, encumbrance or other right, title or interest of any Person (other
than Permitted Liens) and the Debtor shall defend the Collateral against all
claims and demands of all Persons at any time claiming the same or any interest
therein adverse to the Secured Parties (other than Permitted Liens).

     (b) There is no financing statement (or similar statement or instrument of
registration under the laws of any jurisdiction) or any assignment of patent,
trademark or copyright now on file or registered in any public office covering
any interest of any kind in the Collateral, or intended to cover any such
interest, which has not been terminated or released by the secured party named
therein and so long as the Notes remain outstanding or any of the Secured
Obligations of the Debtor remain unpaid or unsatisfied, the Debtor will not
execute and there will not be on file in any public office any financing
statement (or similar statement or instrument of registration under the law of
any jurisdiction) or statements relating to the Collateral, except (i) financing
statements filed or to be filed in respect of and covering the security interest
of the Secured Parties hereby granted and provided for and (ii) with respect to
Permitted Liens.

     (c) The chief executive office and chief place of business of the Debtor is
located at the address of the Debtor listed on the signature page hereof, and
the Debtor will not move its chief executive office and chief place of business
except to such new location as the Debtor may establish in accordance with the
last sentence of this Section 3(d). The originals of all Assigned Agreement
Interest and all documents (as well as all duplicates thereof) evidencing all
Receivables and all other contract rights or accounts and other property of the
Debtor and the only original books of account and records of the Debtor relating
thereto are, and will continue to be, kept at such chief executive office. The
Debtor shall establish no such new location until (i) it shall have given to the
Secured Parties, not less than 30 days' prior written notice of its intention to
do so, clearly describing such new location and providing such other information
in connection therewith as the Secured Parties may reasonably request, and (ii)
with respect to such new location, it shall have taken such action, satisfactory
to the Secured Parties (including, without limitation, all action required by
Section 7 hereof), to maintain the security interest of the Secured Parties in
the Receivables intended to be granted under this Agreement at all times fully
perfected and in full force and effect.

     (d) The Debtor has no Collateral located outside of the states of Texas,
California and Pennsylvania.
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     (e) Schedule A annexed hereto sets forth all subsidiaries of the Debtor.
For purposes of this Agreement, subsidiaries means any entity (i) in which the
Debtor, directly or indirectly, owns 51% of the capital stock or holds an equity
or similar interest and (ii) which conducts substantive business activities or
holds material assets. The Debtor hereby covenants and agrees that at such time
as it creates or acquires a subsidiary, the Debtor shall cause such subsidiary
to enter into a security agreement on substantially the same terms as this
Agreement.

     (f) The name of the Debtor is as set forth on the signature page hereto and
the Debtor shall not change its name, conduct its businesses in any other name
or take title to the Collateral in any other name while this Agreement remains
in effect. The Debtor has never had any name, or conducted business under any
name in any jurisdiction, other than its name set forth on the signature page
hereto, during the past five years other than as set forth in Schedule 2 annexed
hereto.

     (g) At the Debtor's own expense, the Debtor will: (i) without limiting the
provisions of any of the Notes, keep the Collateral fully insured at all times
with financially sound and responsible insurance carriers against loss or damage
by fire and other risks, casualties and contingencies and in such manner and to
the same extent that like properties are customarily so insured by other
entities engaged in the same or similar businesses similarly situated and keep
adequate insurance at all times against liability on account of damage to
persons and properties and under all applicable workers' compensation laws, by
insurers and in commercially reasonable amounts, for the benefit of the Debtor
and the Secured Parties, (ii) upon reasonable request by the Secured Parties
promptly deliver the insurance policies or certificates thereof to the Secured
Parties, and (iii) keep the Collateral in good condition at all times (normal
wear and tear excepted) and maintain same in accordance with commercially
reasonable standards. Upon any failure of the Debtor to comply with its
obligations pursuant to this Section 3(h), the Secured Parties may at their
option, and without affecting any of their other rights or remedies provided
herein or as a secured party under the Uniform Commercial Code, procure the
insurance protection they reasonably deem necessary and/or cause reasonable
repairs or modifications to be made to the Collateral and the cost of either or
both of which shall be a lien against the Collateral added to the amount of the
indebtedness secured hereby and payable on demand with interest at a rate per
annum equal to 13%.

     (h) The Debtor hereby assign to the Secured Parties all of Debtor's right,
title and interest in and to any and all moneys which may become due and payable
with respect to the Collateral under any policy insuring the Collateral (except
proceeds relating to tangible personal property which are applied to restoration
or replacement), including return of unearned premium, and shall cause any such
insurance company to make payment directly to the Secured Parties for
application to amounts outstanding under the Notes in accordance with the terms
of the Notes and, to the extent not provided therein, in such order as the
Secured Parties shall determine.

     (i) The Debtor will not use the Collateral in violation of any statute or
ordinance or applicable insurance policy and will promptly pay all taxes and
assessments levied against the Collateral; provided however, that the Debtor
shall not be required to pay and discharge any such
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tax, assessment, charge, levy or claim so long as the validity thereof shall be
contested in good faith by appropriate proceedings and the Debtor shall set
aside on its books adequate reserves in accordance with GAAP with respect to any
such tax assessments, charge, levy or claim so contested;

     (j) The Debtor will not sell, transfer, change the registration, if any,
dispose of, attempt to dispose of, substantially modify or abandon the
Collateral or any part thereof other than sales of Inventory in the ordinary
course of business or the disposition of obsolete or worn-out Equipment in the
ordinary course of business.

     (k) The Debtor will not assert against the Secured Parties any claim or
defense which the Debtor may have against any seller of the Collateral or any
part thereof or against any other Person with respect to the Collateral or any
part thereof, except in the case of any Secured Party for such person's gross
negligence or willful misconduct.

     (l) The Debtor will indemnify and hold the Secured Parties harmless from
and against any loss, liability, damage, costs and expenses whatsoever arising
from the Debtor's use, operation, ownership or possession of the Collateral or
any part thereof.

     (m) The Debtor will maintain the confidentiality of all customer lists and
not sell or otherwise dispose of such lists except that the Debtor shall deliver
copies thereof to the Secured Parties, upon their request, during the
continuance of an Event of Default.

     (n) The Debtor will not enter into any agreement that is inconsistent with
the Debtor's obligations under this Agreement, without the prior written consent
of the Secured Parties.

     Section 4. Special Provisions Concerning the Assigned Agreement Interest.
The Debtor represents, warrants and agrees as follows:

     (a) The Assigned Agreement Interest constitutes the legal, valid and
binding obligations of the Debtor and, to the best of its knowledge, the other
parties thereto, enforceable in accordance with their respective terms (except
as enforceability may be limited by bankruptcy, insolvency or other similar laws
limiting creditors' rights generally).

     (b) The Debtor will faithfully abide by, perform and discharge each and
every material obligation, covenant and agreement to be performed by the Debtor
under the Assigned Agreement Interest.

     (c) The Debtor will not act or fail to act in a manner likely (directly or
indirectly) to entitle any party thereto to claim that the Debtor is in default
under the terms thereof except for such nonperformance as a result of default by
any other party thereto.

     (d) The Debtor will not terminate or permit the termination of any Assigned
Agreement Interest, except in accordance with its terms, other than in the
ordinary course of business or as it deems necessary or desirable in the normal
course of its business.
<PAGE>

     (e) Without the prior written consent of the Secured Parties, the Debtor
will not, other than in the ordinary course of business, waive or in any manner
release or discharge any party to any Assigned Agreement Interest from any of
the material obligations, covenants, conditions and agreements to be performed
by it under such Assigned Agreement Interest including, without limitation, the
obligation to make all payments in the manner and at the time and places
specified.

     (f) If the Secured Parties so request during the continuance of an Event of
Default and, if prior to the Maturity Date of the Notes (as defined in the
Notes), the acceleration of any one or more of the Notes ("Acceleration"), the
Debtor will hold any payments received by it which are assigned and set over to
the Secured Parties by this Agreement for and on behalf of the Secured Parties
and turn them promptly over to the Secured Parties forthwith in the same form in
which they are received (together with any necessary endorsement) for
application to amounts outstanding under the Notes in accordance with the terms
of the Notes and, to the extent not provided therein, in such order as the
Secured Parties shall determine.

     (g) The Debtor will appear in and defend every action or proceeding arising
under, growing out of or in any manner connected with the Assigned Agreement
Interest or the obligations, duties or liabilities of the Debtor and any
assignees thereunder.

     (h) Should the Debtor fail to make any payment or to do any act as herein
provided after 30 days' written notice by the Secured Parties, the Secured
Parties may (but without obligation on the Secured Parties' part to do so and
without notice to or demand on the Debtor and without releasing the Debtor from
any obligation hereunder) make or do the same in such manner and to such extent
as the Secured Parties may deem necessary to protect the security interests
provided hereby, including specifically, without limiting the general powers,
the right to appear in and defend any action or proceeding purporting to affect
the security interests provided hereby, and the Secured Parties may also perform
and discharge each and every obligation, covenant and agreement of the Debtor
contained in any Assigned Agreement Interest and, in exercising any such powers,
pay necessary costs and expenses, employ counsel and incur and pay reasonable
attorneys' fees.

     (i) Upon the written request of the Secured Parties, the Debtor will send
to the Secured Parties copies of all material notices, documents and other
papers furnished or received by it with respect to any of the Assigned Agreement
Interest.

     Section 5. Special Provisions Concerning Receivables.

     (a) As of the time when each Receivable arises, the Debtor shall be deemed
to have warranted as to each such Receivable that such Receivable and all papers
and documents relating thereto are genuine and in all respects what they purport
to be, and that all papers and documents relating thereto:

        (i) will be signed by the account debtor named therein (or such account
     Debtor's duly authorized agent) or otherwise be binding on the account
     debtor (except as
<PAGE>

     enforcement may be limited by bankruptcy, insolvency or other similar laws
     limiting creditor's rights generally);

        (ii) will represent the genuine, legal, valid and binding obligation of
     the account debtor (except as enforcement may be limited by bankruptcy,
     insolvency or other similar laws limiting creditor's rights generally)
     evidencing indebtedness unpaid and owed by such account debtor arising out
     of the performance of labor or services or the sale and delivery of
     merchandise or both;

        (iii) to the extent evidenced by writings, will be the only original
     writings evidencing and embodying such obligation of the account debtor
     named therein; and

        (iv) will be in compliance and will conform with all applicable federal,
     state and local laws (including applicable usury laws) and applicable laws
     of any relevant foreign jurisdiction.

     (b) The Debtor will keep and maintain at the Debtor's own cost and expense
reasonably satisfactory and complete records of the Receivables, including, but
not limited to, records of all payments received, all credits granted thereon,
all merchandise returned and all other dealings therewith, and the Debtor will
make the same available to the Secured Parties at the Debtor's own cost and
expense, at any and all reasonable times upon seven days' written request of the
Secured Parties. The Debtor shall, at the Debtor's own cost and expense, deliver
the Receivables (including, without limitation, all documents evidencing the
Receivables) and such books and records to the Secured Parties, or to its
representatives upon its demand at any time during the continuance of an Event
of Default and, if prior to the Maturity Date and Acceleration. If the Secured
Parties shall so request during the continuance of a Default or an Event of
Default, the Debtor shall legend, in form and manner satisfactory to the Secured
Parties, the Receivables and other books, records and documents of the Debtor
evidencing or pertaining to the Receivables with an appropriate reference to the
fact that the Receivables have been assigned to the Secured Parties and that the
Secured Parties have a security interest therein.

     (c) Except in the ordinary course of business if no Event of Default has
occurred and is continuing, the Debtor will not rescind or cancel any amount
greater than $250,000 of any Receivable or modify any term thereof or make any
adjustment with respect thereto, or extend or renew the same, or compromise or
settle any dispute, claim, suit or legal proceeding relating thereto, or sell
any Receivable or interest therein, without the prior written consent of the
Secured Parties, except that the Debtor may grant discounts in connection with
the prepayment of any Receivable in an amount which is customary in the line of
business in which the Debtor is engaged and consistent with the Debtor's past
practices and in accordance with commercially reasonable standards.

     (d) The Debtor will duly fulfill all obligations on its part to be
fulfilled under or in connection with the Receivables and will do nothing to
impair the rights of the Secured Parties in the Receivables other than such non-
compliance which could not reasonably be expected to have a Material Adverse
Effect (as defined in the Notes.
<PAGE>

     (e) The Debtor shall endeavor to collect or cause to be collected from the
account debtor named in each Receivable, as and when due (including, without
limitation, Receivables which are delinquent, such Receivables to be collected
in accordance with generally accepted lawful collection procedures) any and all
amounts owing under or on account of such Receivable, and credit forthwith (on a
daily basis) upon receipt thereof all such amounts as are so collected to the
outstanding balance of such Receivable. The costs and expenses (including
attorneys' fees) of collection, whether incurred by the Debtor or the Secured
Parties, shall be borne by the Debtor.

     (f) Upon request of the Secured Parties, at any time when an Event of
Default has occurred and is continuing, the Debtor shall promptly notify (in
manner, form and substance reasonably satisfactory to the Secured Parties) all
Persons who are then obligated under any Receivable that the Secured Parties
possesses a security interest in such Receivable and that all payments in
respect thereof are to be made to such account as the Secured Parties directs.

     Section 6. Special Provisions Concerning Equipment. The Debtor will do
nothing to impair the rights of the Secured Parties in the Equipment other than
a failure to so act which could not reasonably be expected to have a Material
Adverse Effect. The Debtor shall cause the Equipment to at all times constitute
and remain personal property. The Debtor will at all times keep all Equipment
insured with financially responsible insurance companies in favor of the Secured
Parties, at the expense of the Debtor, against such perils and in such amounts
as are customary for Persons in the same general line of business as the Debtor
and operating in similar geographic locations and markets. If the Debtor shall
fail to so insure the Equipment or to so endorse and deposit all policies or
certificates with respect thereto, the Secured Parties shall have the right (but
shall be under no obligation) to procure such insurance and the Debtor agrees to
reimburse the Secured Parties for all costs and expenses of procuring such
insurance, together with interest at a rate per annum equal to 13%. The Secured
Parties may apply any proceeds of such insurance when received by it pursuant to
the terms of this Section 6 or Section 3(i) hereof toward the payment of any of
the Secured Obligations, whether or not the same shall then be due. The Debtor
retains all liability and responsibility in connection with the Equipment and
the liability of the Debtor to pay the Secured Obligations shall in no way be
affected or diminished by reason of the fact that such Equipment may be lost,
destroyed, stolen, damaged or for any reason whatsoever unavailable to the
Debtor.

     Section 7. Financing Statements; Documentation; Stamp Taxes.

     (a) The Debtor will, at its own expense, make, execute, endorse,
acknowledge, file and/or deliver to the Secured Parties from time to time such
lists, descriptions and designations of Inventory, warehouse receipts, bills of
lading, documents of title, vouchers, invoices, schedules, confirmatory
assignments, conveyances, financing statements, transfer endorsements, powers of
attorney, certificates, reports and other assurances or instruments and take
such further steps relating to the Collateral and other property or rights
covered by the security interest hereby granted, which the Secured Parties
reasonably deem appropriate or advisable to perfect, preserve or protect their
security interest in the Collateral. The Debtor hereby constitutes each of the
Secured Parties its attorney-in-fact to execute and file in the name and on
behalf of the Debtor such
<PAGE>

additional financing statements as the Secured Parties may reasonably request,
such acts of such attorney being hereby ratified and confirmed; such power,
being coupled with an interest, is irrevocable until the Secured Obligations are
paid in full. Further, to the extent permitted by applicable law, the Debtor
authorizes the Secured Parties to file any such financing statements without the
signature of the Debtor. The Debtor will pay all applicable filing fees and
related expenses in connection with any such financing statements.
Notwithstanding the foregoing, so long as no Event of Default shall have
occurred and be continuing, the Debtor shall not be obligated to make any
filings or recordings in order to perfect the Secured Parties' security interest
granted hereunder, other than the filing of UCC-1 financing statements.

     (b) The Debtor agrees to procure, pay for, affix to any and all documents
and cancel any documentary tax stamps required by and in accordance with,
applicable law and the Debtor will indemnify and hold the Secured Parties
harmless against any liability (including interest and penalties) in respect of
such documentary stamp taxes.

     Section 8. Special Provisions Concerning Remedies and Sale.

     (a) In addition to any rights and remedies now or hereafter granted under
applicable law and not by way of limitation of any such rights and remedies,
during the continuance of an Event of Default and, if prior to the Maturity Date
and Acceleration, the Secured Parties shall have all of the rights and remedies
of a secured party under the Uniform Commercial Code as enacted in any
applicable jurisdiction in addition to the rights and remedies provided herein,
in the Notes and in any other agreement executed in connection with the Notes
whereby the Debtor has granted any Lien to the Secured Parties. Without in any
way limiting the foregoing, the Secured Parties shall have the right, without
further notice to, or assent by, the Debtor, in the name of the Debtor or in the
name of the Secured Parties or otherwise, to pursue any one or all of the
following or any other remedies:

        (i) to ask for, demand, collect, receive, compound and give acquittance
     for the Receivables or any part thereof;

        (ii) to extend the time of payment of, compromise or settle for cash,
     credit or otherwise, and upon any terms and conditions, any of the
     Receivables;

        (iii) to endorse the name of the Debtor on any checks, drafts or other
     orders or instruments for the payment of moneys payable to the Debtor which
     shall be issued in respect of any Receivable;

        (iv) to file any claims, commence, maintain or discontinue any actions,
     suits or other proceedings deemed by the Secured Parties necessary or
     advisable for the purpose of collecting or enforcing payment of any
     Receivable;

        (v) to make test verifications of the Receivables or any portion
     thereof,
<PAGE>

        (vi) to notify any or all account debtors under any or all of the
     Receivables to make payment thereof directly to the Secured Parties, and to
     require the Debtor to forthwith give similar notice to the account debtors;

        (vii) to require the Debtor forthwith to account for and transmit to the
     Secured Parties in the same form as received all proceeds (other than
     physical property) of collection of Receivables received by the Debtor and,
     until so transmitted, to hold the same in trust for the Secured Parties and
     not commingle such proceeds with any other funds of the Debtor;

        (viii) to take possession of any or all of the Collateral and, for that
     purpose, to enter, with the aid and assistance of any Person or Persons and
     with or without legal process, any premises where the Collateral, or any
     part thereof, are, or may be, placed or assembled, and to remove any of
     such Collateral;

        (ix) to execute any instrument and do all other things necessary and
     proper to protect and preserve and realize upon the Collateral and the
     other rights contemplated hereby;

        (x) upon notice to such effect, to require the Debtor to deliver, at the
     Debtor's expense, any or all Collateral to the Secured Parties at a place
     designated by the Secured Parties; and

        (xi) without obligation to resort to other security, at any time and
     from time to time, to sell, re-sell, assign and deliver all or any of the
     Collateral, in one or more parcels at the same or different times, and all
     right, title and interest, claim and demand therein and right of redemption
     thereof, at public or private sale, for cash, upon credit or for future
     delivery, and at such price or prices and on such terms as the Secured
     Parties may determine, with the amounts realized from any such sale to be
     applied to the Secured Obligations in the manner determined by the Secured
     Parties.

     The Debtor hereby agrees that all of the foregoing may be effected without
demand, advertisement or notice (except as otherwise provided herein or as may
be required by law), all of which (except as otherwise provided) are hereby
expressly waived, to the extent permitted by law. The Secured Parties shall not
be obligated to do any of the acts hereinabove authorized, but in the event that
the Secured Parties elect to do any such act, the Secured Parties shall not be
responsible to the Debtor except for their gross negligence or willful
misconduct.

     (b) The Secured Parties may take legal proceedings for the appointment of a
receiver or receivers (to which the Secured Parties shall be entitled as a
matter of right) to take possession of the Collateral pending the sale thereof
pursuant either to the powers of sale granted by this Agreement or to a
judgment, order or decree made in any judicial proceeding for the foreclosure or
involving the enforcement of this Agreement. If, after the exercise of any or
all of such rights and remedies, any of the Secured Obligations shall remain
unpaid, the Debtor shall remain liable for any deficiency. After the
indefeasible payment in full of the Secured Obligations, any proceeds of the
Collateral received or held by the Secured Parties shall be turned over to the
<PAGE>

Debtor and the Collateral shall be reassigned to the Debtor by the Secured
Parties without recourse to the Secured Parties and without any representations,
warranties or agreements of any kind.

     (c) Upon any sale of any of the Collateral, whether made under the power of
sale hereby given or under judgment, order or decree in any judicial proceeding
for the foreclosure or involving the enforcement of this Agreement:

        (i) the Secured Parties may, to the extent permitted by law, bid for and
     purchase the property being sold, and upon compliance with the terms of
     sale may hold, retain and possess and dispose of such property in its own
     absolute right without further accountability, and may, in paying the
     purchase money therefor, deliver the Notes or claims for interest thereon
     and any other instruments evidencing the Secured Obligations or agree to
     the satisfaction of all or a portion of the Secured Obligations in lieu of
     cash in payment of the amount which shall be payable thereon, and the
     Notes, and such instruments, in case the purchase price of such Collateral
     shall be less than the amount due on the Notes, shall be returned to the
     Secured Parties after being appropriately stamped to show partial payment;

        (ii) the Secured Parties may make and deliver to the purchaser or
     purchasers a good and sufficient deed, bill of sale and instrument of
     assignment and transfer of the property sold;

        (iii) the Secured Parties are, and each of them is, hereby irrevocably
     appointed the true and lawful attorney-in-fact of the Debtor in its name
     and stead, to make all necessary deeds, bills of sale and instruments of
     assignment and transfer of the property thus sold and for such other
     purposes as are necessary or desirable to effectuate the provisions
     (including, without limitation, this Section 8) of this Agreement, and for
     that purpose it may execute and deliver all necessary deeds, bills of sale
     and instruments of assignment and transfer, and may substitute one or more
     Persons with like power, the Debtor hereby ratifying and confirming all
     that its said attorney, or such substitute or substitutes, shall lawfully
     do by virtue hereof; but if so requested by the Secured Parties, or by any
     purchaser, the Debtor shall ratify and confirm any such sale or transfer by
     executing and delivering to the Secured Parties, or to such purchaser all
     property, deeds, bills of sale, instruments or assignment and transfer and
     releases as may be designated in any such request;

        (iv) all right, title, interest, claim and demand whatsoever, either at
     law or in equity or otherwise, of the Debtor of, in and to the property so
     sold shall be divested; such sale shall be a perpetual bar both at law and
     in equity against the Debtor, its successors and assigns, and against any
     and all Persons claiming or who may claim the property sold or any part
     thereof from, through or under the Debtor, their successors or assigns;

        (v) the receipt of the Secured Parties, or of the officers thereof
     making such sale shall be a sufficient discharge to the purchaser or
     purchasers at such sale for his or their purchase money, and such purchaser
     or purchasers, and his or their assigns or personal representatives, shall
     not, after paying such purchase money and receiving such receipt of the
<PAGE>

     Secured Parties, or of such officers therefor, be obliged to see to the
     application of such purchase money or be in any way answerable for any
     loss, misapplication or non-application thereof;

        (vi) to the extent that it may lawfully do so, and subject to any legal
     requirement that the Secured Parties act in a commercially reasonable
     manner, the Debtor agrees that it will not at any time insist upon, or
     plead, or in any manner whatsoever claim or take the benefit or advantage
     of, any appraisement, valuation, stay, extension or redemption laws, or any
     law permitting it to direct the order in which the Collateral or any part
     thereof shall be sold, now or at any time hereafter in force, which may
     delay, prevent or otherwise affect the performance or enforcement of this
     Agreement or any of the Notes whereby the Debtor has granted any Lien to
     the Secured Parties;

        (vii) and the Debtor hereby expressly waives all benefit or advantage of
     any such laws and covenants that it will not hinder, delay or impede the
     execution of any power granted or delegated to the Secured Parties in this
     Agreement, but will suffer and permit the execution of every such power as
     though no such laws were in force. In the event of any sale of Collateral
     pursuant to this Section, the Secured Parties shall, at least 10 days
     before such sale, give the Debtor written, telecopied or telex notice of
     their intention to sell.

     Section 9. Application of Moneys.

     (a) Except as otherwise provided herein or in any of the Notes, all moneys
which the Secured Parties shall receive, in accordance with the provisions
hereof, shall be applied (to the extent thereof) in the following manner: First,
to the payment of all costs and expenses reasonably incurred in connection with
the administration and enforcement of, or the preservation of any rights under,
this Agreement or any of the reasonable expenses and disbursements of the
Secured Parties in connection therewith (including, without limitation, the fees
and disbursements of its counsel and agents); Second, to the payment of all
Secured Obligations arising out of the Notes in accordance with the terms of the
Notes and, if not therein provided, in such order as the Secured Parties may
determine; and Third, to the payment of all other Secured Obligations in such
order as the Secured Parties may determine.

     (b) In the event the moneys which Commonwealth and ComVest shall receive,
in accordance with the provisions hereof, is less than the aggregate amount of
all Secured Obligations arising under this Agreement, the moneys shall be
allocated among Commonwealth and ComVest in proportion to the respective Secured
Obligation owed directly to Commonwealth and ComVest.

     (c) If after applying any amounts which the Secured Parties have received
in respect of the Collateral any of the Secured Obligations remain unpaid, the
Debtor shall continue to be liable for any deficiency, together with interest.

     Section 10. Fees and Expenses, etc. Any and all fees, costs and expenses of
whatever kind or nature, including but not limited to the reasonable attorneys'
fees and legal expenses incurred by the Secured Parties in connection with the
collection, administration or enforcement of its rights under this Agreement,
the filing or recording of any documents (including all taxes in connection
<PAGE>

therewith) in public offices, the payment or discharge of any taxes, counsel
fees, maintenance fees, fees and other costs relating to the encumbrances or
otherwise protecting, maintaining, preserving the Collateral, or in defending or
prosecuting any actions or proceedings arising out of or related to the
Collateral, shall be borne and paid by the Debtor on written demand by the
Secured Parties, and until so paid shall be added to the principal amount of the
Secured Obligations and shall bear interest at a rate per annum equal to 13%.
In addition, the Debtor will pay, and indemnify and hold the Secured Parties
harmless from and against, any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the Collateral, including
(without limitation) claims of patent or trademark infringement and any claim of
unfair competition or anti-trust violation except for any such liabilities,
obligations, losses, etc. resulting from the gross negligence or willful
misconduct of the Secured Parties.

     Section 11. Miscellaneous.

     (a) All notices, communications and distributions hereunder shall be in
writing (including telecopied communication) and mailed by certified mail,
telecopied, personally delivered or delivered by Federal Express or other
reputable overnight courier service, if to the Debtor addressed to it at the
address set forth opposite its signature below; if to the Secured Parties,
addressed to them at the address set forth opposite its signature below; or as
to either party at such other address as shall be designated by such party in a
written notice to such other party complying as to delivery with the terms of
this Section. All such notices and other communications shall be effective (i)
if mailed by certified mail, three days after the date of deposit thereof with
the U.S. Postal Service, properly addressed with postage prepaid, (ii) if
telecopied, upon receipt by the addressee, (iii) if personally delivered, upon
such delivery and (iv) if delivered by overnight courier service, on the
business day following delivery thereof to such courier service in time for
next-business-day delivery.

     (b) No delay on the part of the Secured Parties in exercising any of their
rights, remedies, powers and privileges hereunder or partial or single exercise
thereof, shall constitute a waiver thereof. None of the terms and conditions of
this Agreement may be changed, waived, modified or varied in any manner
whatsoever unless in writing duly signed by the Debtor and the Secured Parties.
No notice to or demand on the Debtor in any case shall entitle the Debtor to any
other or further notice or demand in similar or other circumstances or
constitute a waiver of any of the rights of the Secured Parties to any other or
further action in any circumstances without notice or demand.

     (c) This Agreement shall remain in full force and effect and continue to be
effective should any petition be filed by or against any Debtor for liquidation
or reorganization, should any Debtor become insolvent or make an assignment for
the benefit of any creditor or creditors or should a receiver or trustee be
appointed for all or any significant part of any Debtor's assets, and shall
continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Note, or any part thereof, is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Note, whether as a
<PAGE>

"voidable preference," "fraudulent conveyance," or otherwise, all as though such
payment or performance had not been made. In the event that any payment, or any
part thereof, is rescinded, reduced, restored or returned, the Note shall be
reinstated and deemed reduced only by such amount paid and not so rescinded,
reduced, restored or returned

     (d) Subject to paragraph (c) above, this Agreement shall terminate upon the
Maturity Date (provided, that all indemnities set forth herein shall survive
such termination) and the Secured Parties, at the request and expense of the
Debtor, will promptly execute and deliver to the Debtor a proper instrument or
instruments (including Uniform Commercial Code termination statements on Form
UCC-3) acknowledging the satisfaction and termination of this Agreement, and
will duly assign, transfer and deliver to the Debtor (without recourse and
without representation or warranty) such of the Collateral as may be in the
possession of the Secured Parties and as has not thereto been sold or otherwise
applied or released pursuant to this Agreement

     (e) The obligations of the Debtor hereunder shall remain in full force and
effect without regard to, and shall not be impaired by, (i) any bankruptcy,
insolvency, reorganization, arrangement, readjustment, composition, liquidation
or the like of the Debtor; (ii) any exercise or non-exercise, or any waiver of,
any right, remedy, power or privilege under or in respect of the Notes or this
Agreement, or any other agreement executed in connection with any of the
foregoing, the Secured Obligations or any security for any of the Secured
Obligations; or (iii) any amendment to or modification of any of the foregoing;
whether or not the Debtor shall have notice or knowledge of any of the
foregoing. The rights and remedies of the Secured Parties herein provided are
cumulative and not exclusive of any rights or remedies which the Secured Parties
would otherwise have.

     (f) This Agreement shall be binding upon the Debtor and their successors
and assigns and shall inure to the benefit of the Secured Parties and their
successors and assigns, except that the Debtor may not transfer or assign any of
its obligations, rights or interests hereunder without the prior written consent
of the Secured Parties, and any such purported assignment by the Debtor shall be
void. All agreements, representations and warranties made herein shall survive
the execution and delivery of this Agreement.

     (g) The descriptive headings of the several sections of this Agreement are
inserted for convenience only and shall not in any way affect the meaning or
construction of any provision of this Agreement.

     (h) Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

     (i) All rights, remedies and powers provided by this Agreement may be
exercised only to the extent that the exercise thereof does not violate any
applicable provision of law, and the provisions hereof are intended to be
subject to all applicable mandatory provisions of law that may
<PAGE>

be controlling and to be limited to the extent necessary so that they will not
render this Agreement invalid, unenforceable in whole or in part or not entitled
to be recorded, registered or filed under the provisions of any applicable law.

     (j) This Agreement (unless otherwise provided) and all amendments,
supplements, waivers, consents relating hereto or thereto and the rights and
obligations of the parties hereunder shall be construed in accordance with and
governed by the laws of the State of New York except to the extent that matters
of title, or creation, perfection and priority of the security interests created
hereby, or procedural issues of foreclosure are required to be governed by the
laws of the state in which the Collateral, or part thereof, is located. THE
DEBTOR AGREES THAT ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OF THE NOTES EXECUTED IN CONNECTION HEREWITH, OR ANY LEGAL
ACTION OR PROCEEDING TO EXECUTE OR OTHERWISE ENFORCE ANY JUDGMENT OBTAINED
AGAINST THE DEBTOR FOR BREACH HEREOF OR THEREOF, OR AGAINST ANY OF ITS
PROPERTIES, MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK BY THE SECURED
PARTIES AS IT MAY ELECT, AND THE DEBTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF SUCH COURTS FOR PURPOSES OF ANY
SUCH LEGAL ACTION OR PROCEEDING. THE DEBTOR HEREBY COVENANT AND IRREVOCABLY
SUBMIT TO THE IN PERSONAM JURISDICTION OF THE FEDERAL AND STATE COURTS LOCATED
IN THE CITY, COUNTY AND STATE OF NEW YORK AND AGREES THAT ANY PROCESS IN ANY
SUCH ACTION MAY BE SERVED UPON ANY OF THEM PERSONALLY, OR BY CERTIFIED MAIL OR
REGISTERED MAIL UPON THEM OR THEIR AGENT, RETURN RECEIPT REQUESTED, WITH THE
SAME FULL FORCE AND EFFECT AS IF PERSONALLY SERVED UPON THEM IN NEW YORK CITY.
IN ADDITION, THE DEBTOR HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OF THE NOTES EXECUTED IN CONNECTION HEREWITH, BROUGHT IN THE
COURTS OF THE STATE OF NEW YORK OR THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK, AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN ANY INCONVENIENT FORUM.
THE DEBTOR FURTHER WAIVES TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT
TO THIS AGREEMENT OR THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION
HEREWITH.

     (k) It is expressly agreed, anything herein, or in any of the Notes to the
contrary notwithstanding, that the Debtor shall remain liable to perform all of
the obligations, if any, assumed by it with respect to the Collateral and the
Secured Parties shall not have any obligations or liabilities with respect to
any Collateral by reason of or arising out of this Agreement, nor shall the
Secured Parties be required or obligated in any manner to perform or fulfill any
of the obligations of the Debtor under or pursuant to any or in respect of any
Collateral.
<PAGE>

     (l) This Agreement may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which when so
executed and delivered shall be an original, but all of which counterparts taken
together shall be deemed to constitute one and the same instrument.

     (m) For purposes of this Agreement, Commonwealth may act as agent for
ComVest, and provide any notice, give any consent, make any request or demand
and take any other action on behalf of ComVest.
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered by their duly authorized officers as of the date first
above written.

                                    drkoop.com, Inc., as the Debtor

                                    By: /s/ Donald Hackett
                                        ------------------
                                        Name: Donald Hackett
                                        Title: CEO

The foregoing Agreement is hereby accepted as
 of the date first above written:

COMMONWEALTH ASSOCIATES, L.P.

By /s/ Joseph P. Wynne
-----------------------------
Title: Joseph P. Wynne

COMVEST VENTURE PARTNERS, L.P.

By /s/ Joseph P. Wynne
-----------------------------
Title: Joseph P. Wynne<PAGE>

                                                                   EXHIBIT 10.64

                         REGISTRATION RIGHTS AGREEMENT

          Registration Rights Agreement (the "Agreement"), dated as of June 23,
2000, among drkoop.com, Inc., a Delaware corporation (the "Company"),
Commonwealth Associates, L.P. ("Commonwealth"), ComVest Capital Management, LLC
("ComVest," and with Commonwealth, the "Bridge Lenders," or each, a "Bridge
Lender") and each of the investors identified on Schedule 1 hereto (as such
schedule may be updated from time to time) and signatory hereto (each an
"Investor" and collectively, the "Investors").

          WHEREAS, this Agreement is being entered into in connection with that
certain placement agency agreement, dated the date hereof, between Commonwealth
and the Company (the "Agency Agreement"), and a bridge loan extended by the
Bridge Lenders to the Company (the "Bridge Loan") and an equity investment made
by the Investors in the Company (the "Equity Investment") contemplated thereby;
and

          WHEREAS, on the date hereof, the Bridge Lenders funded the Bridge Loan
and the Company issued to the Bridge Lenders 8% senior secured promissory notes
in the aggregate principal amount of $1,500,000 (the "Notes"); and

          WHEREAS, as an inducement to the Bridge Lenders to fund the Bridge
Loan, the Company issued to the Bridge Lenders those certain warrants (herein,
as at any time amended, extended, restated, renewed or modified, the "Bridge
Warrants") to purchase up to 4,000,000 shares of Common Stock (the "Common
Stock"), $0.001 par value per share, of the Company (the "Bridge Warrant
Shares"); and

          WHEREAS, pursuant to the terms of subscription agreements entered into
between the Company and each Investor in the Equity Investment (collectively,
the "Subscription Agreement"), each Investor will purchase (i) shares of the
Company's Series D Preferred Stock (the "Preferred Stock") that is convertible
into shares of Common Stock (the "Preferred Conversion Shares"), and (ii)
warrants ("Investor Warrants") to purchase shares of Common Stock (the "Investor
Warrant Shares"); and

          WHEREAS, in connection with the Equity Investment, the Company will
issued to Commonwealth, as placement agent, certain warrants (the "Agency
Warrants") to purchase shares of Common Stock (the "Agency Warrant Shares"); and

          WHEREAS, the terms of the Bridge Warrants, Preferred Stock, Investor
Warrants and Agency Warrants provide that the Bridge Warrant Shares, Preferred
Conversion Shares, Investor Warrant Shares and Agent Warrant Shares, as the case
may be, shall be entitled to registration rights; and

          WHEREAS, the Company has previously entered into registration rights
agreements, the terms of each of which provide that the Company shall not grant
registration rights superior to those granted in such Existing Agreements (as
defined below).
<PAGE>

          NOW, THEREFORE in consideration of the foregoing and the mutual
promises, representations, warranties and covenants and agreements contained
herein, the Company and each of the Investors hereto, intending to be legally
bound hereby agree as follows:

     1. Definitions. The following additional definitions shall apply for
purposes of this Agreement:

        (a) The term "Existing Agreements" means the following outstanding
     registration rights agreements of the Company, each of which provides that
     the Company shall not grant registration rights superior to those granted
     in such agreements: (i) Amended and Restated Registration Rights Agreement
     made as of January 29, 1999 by and among the Company, Superior Consultant
     Holdings Corporation, Neal Longwill and Adventist Health System Sunbelt
     Healthcare Corporation, as supplemented in the Registration Agreement,
     dated April 18, 2000 and (ii) Registration Rights Agreement made as of July
     1, 1999 by and among the Company and America Online, Inc.

        (b) The term "Holder" means a Bridge Lender or Investor and any
     transferee or assignee thereof to whom a Bridge Lender or Investor assigns
     its rights under this Agreement and who agrees to become bound by the
     provisions of this Agreement in accordance with Section 8 and, as required
     to comply with Section 9(m), the parties to the Existing Agreements to the
     extent necessary to avoid a breach of either such agreement.

        (c) The term "Equity Investment Holder" means (i) an Investor, (ii)
     Commonwealth, insofar as it is a holder of Agency Warrants or Agency
     Warrant Shares or (iii) any transferee or assignee thereof to whom an
     Investor or Commonwealth, with respect to the Agency Warrants or Agency
     Warrant Shares, assigns rights under this Agreement and who agrees to
     become bound by the provisions of this Agreement in accordance with
     Section 8.

        (d) The term "Bridge Loan Holder" means a Bridge Lender and any
     transferee or assignee thereof to whom a Bridge Lender assigns its rights
     as a Bridge Lender under this Agreement and who agrees to become bound by
     the provisions of this Agreement in accordance with Section 8.

        (e) The term "Person" means an individual, a limited liability company,
     a partnership, a joint venture, a corporation, a trust, an unincorporated
     organization, a government or any department or agency thereof.

        (f) The terms "Register," "Registered," and "Registration" refer to a
     registration effected by preparing and filing one or more Registration
     Statements, (as defined below) or similar document in compliance with the
     Securities Act of 1933, as

                                       2
<PAGE>

     amended (the "1933 Act"), and Rule 415 thereunder or any successor rule
     providing for the offering for resale of securities on a continuous or
     delayed basis ("Rule 415"), and the declaration or ordering of
     effectiveness of such Registration Statement or document by the United
     States Securities and Exchange Commission (the "SEC").

        (g) The term "Registrable Securities" means (1) the Bridge Warrant
     Shares issued or issuable upon exercise of the Bridge Warrants, the
     Investor Warrant Shares issued or issuable upon exercise of the Investor
     Warrants and the Agency Warrant Shares issued or issuable upon exercise of
     the Agency Warrants, and any other securities of the Company issuable upon
     the exercise of any such Warrants; (2) the Preferred Conversion Shares, and
     any other securities of the Company, issued or issuable upon the conversion
     of the Preferred Stock; and (3) any shares of capital stock or other
     securities issued or issuable with respect to the Bridge Warrant Shares,
     the Investor Warrant Shares or the Agency Warrant Shares or the Preferred
     Stock, the Bridge Warrants, the Investor Warrants or the Agency Warrants,
     as a result of any stock split, stock dividend, recapitalization, exchange
     or similar event or otherwise, without regard to any limitations on the
     exercises of the Bridge Warrants, the Investor Warrants or the Agency
     Warrants, or conversion of the Preferred Stock; provided, that any
     securities deemed Registrable Securities in accordance herewith shall cease
     to be Registrable Securities upon the first to occur of (i) the sale of
     such securities pursuant to a Registration Statement, (ii) the sale of such
     securities pursuant to Rule 144 promulgated under the 1933 Act, (iii) the
     date on which all Warrant Shares and Preferred Conversion Shares owned by a
     Holder may be resold in a single 90-day period pursuant to Rule 144 or (iv)
     the date on which such securities become available for sale under Rule
     144(k). Registrable Securities shall include only outstanding Bridge
     Warrant Shares, Investor Warrant Shares, Agency Shares and Preferred
     Conversion Shares, it being understood that the Company shall have no
     obligation to register the initial issuance of any said shares.

        (h) The term "Registration Statement" means a registration statement on
     Form S-1 or Form S-3 or any similar or successor form then appropriate for
     or applicable to the offer and sale of the Registrable Securities and filed
     under the 1933 Act.

     2. Registration.

        (a) Right to Include Registrable Stock. If the Company proposes to
     register any of its securities under the 1933 Act in connection with the
     public offering of such securities solely for cash (other than a
     registration on Form S-4 or Form S-8, or any successor or similar forms)
     (the "Offering"), it will each such time promptly (but not later than 30
     days before the anticipated date of filing such Registration Statement)
     give written notice to each Holder, it being understood that the Bridge
     Lenders will not be entitled to notice or registration under this Section
     2(a) until six months from the close of the Bridge Financing. Upon the
     written request of any of the Holders made within 15 days after the receipt
     of any such notice (which request shall specify the Registrable Securities
     intended to be disposed of by such Holders and the intended method of

                                       3
<PAGE>

     distribution thereof), the Company will use its reasonable best efforts to
     effect the registration under the 1933 Act of all Registrable Securities
     which the Company has been requested to register by any of the Holders in
     accordance with the intended methods of distribution specified in such
     request; provided that (i) if, at any time after giving written notice of
     its intention to register any securities and prior to the effective date of
     the Registration Statement filed in connection with such registration, the
     Company determines for any reason not to proceed with such registration,
     the Company may, at its election, give written notice of such determination
     to the Holders and, thereupon, will be relieved of its obligation to
     register any Registrable Securities in connection with such registration
     and (ii) in case of a determination by the Company to delay registration of
     its securities, the Company will be permitted to delay the registration of
     Registrable Securities for the same period as the delay in registering such
     other securities; provided, however, that the provisions of this Section 2
     will not be deemed to limit or otherwise restrict the rights of the Holders
     under Section 3.

        (b) Mandatory Registration for the Equity Investment Holders'
     Registrable Securities. Notwithstanding the foregoing, the Company shall
     prepare and file with the SEC prior to six months from the final closing of
     the Equity Financing (the "Filing Deadline"), a Registration Statement or
     Registration Statements (as necessary) on Form S-3 covering the resale of
     all of the Registrable Securities held by Equity Investment Holders and by
     the Bridge Loan Holders. In the event that Form S-3 is unavailable for such
     a registration, the Company shall use such other form as is available for
     such a registration, subject to the provisions of Section 2(i). The Company
     shall cause such Registration Statement to be declared effective by the SEC
     prior to the date which is three months following the Filing Deadline (the
     "Effectiveness Deadline").

        (c) Demand Registrations for Holders of the Bridge Warrant Shares.
     Subject to Section 2(e) hereof, if the Company shall receive, at any time
     after six months from the closing of the Bridge Financing, a written
     request from the Holders of at least fifty percent (50%) of the Registrable
     Securities held by the Bridge Loan Holders then outstanding that the
     Company file a registration statement under the Act, then the Company
     shall, within 10 days of the receipt by the Company of such notice, give
     written notice of such request to all Holders and shall, subject to the
     limitations of subsection 2(i) below, effect as soon as practicable, and in
     any event shall use its reasonable best efforts to effect within ninety
     (90) days of the receipt of such request, the registration under the Act of
     all Registrable Securities which the Holders request to be registered
     within twenty (20) days of the mailing of such notice by the Company.
     Pursuant to this Section, the Company shall register the resale of the
     Registrable Securities on Form S-3, if such form is available. In the event
     that Form S-3 is unavailable for such a registration, the Company shall use
     such other form as is available for such a registration, subject to the
     provisions of Section 2(i).

        (d) If the Bridge Loan Holders initiating the registration request under
     Section 2(c) hereof ("Initiating Holders") intend to distribute the
     Registrable Securities

                                       4
<PAGE>

     covered by their request by means of an underwriting, they shall so advise
     the Company as a part of their request made pursuant to Section 2(c) and
     the Company shall include such information in the written notice referred
     to in such Section 2(c). The underwriter will be selected by the Bridge
     Lenders. In such event, the right of any Holder and any persons having
     registration rights under the Existing Agreements to include his
     Registrable Securities in such registration shall be conditioned upon such
     Holder's participation in such underwriting and the inclusion of such
     Holder's Registrable Securities in the underwriting (unless otherwise
     mutually agreed by a majority in interest of the Initiating Holders and
     such Holder) to the extent provided herein. All Holders proposing to
     distribute their securities through such underwriting shall (together with
     the Company) enter into an underwriting agreement in customary form with
     the underwriter or underwriters approved for such underwriting by a
     majority in interest of the Initiating Holders.

        (e) If the Registrable Securities held by the Bridge Loan Holders shall
     have been registered pursuant to Section 2(b) hereof, the Company shall not
     be subject to the obligations contained in Section 2(c) hereof. The Company
     is obligated to effect only two (2) registrations pursuant to Section 2(c),
     so long as each such registration has been ordered effective by the SEC.

        (f) Notwithstanding the foregoing, if (i) the Company shall furnish to
     Holders requesting a registration statement pursuant to Section 2(c), a
     certificate signed by the Company's President stating that in the good
     faith judgment of the disinterested members of the Company's Board of
     Directors (the "Board"), it would be seriously detrimental to the Company
     and its shareholders for such registration statement to be filed and it is
     therefore desirable to defer the filing of such registration statement, the
     Company shall have the right to defer taking action with respect to such
     filing for a period of not more than ninety (90) days after receipt of the
     request of the Initiating Holders; provided, however, that the Company
     shall not utilize this right more than twice in any twelve (12)-month
     period or (ii) the Company shall have determined that it intends to engage
     in a primary offering of new securities for the account of the Company
     raising gross proceeds of at least $20 million to finance its capital needs
     ("Primary Financing"), the Company may defer the filing of such
     registration statement for up to sixty (60) days in order to permit the
     Company to file a registration statement with respect to such Primary
     Financing (in respect of which "piggyback" rights shall apply upon the
     terms and subject to the conditions of this Agreement), provided that the
     underwriter or placement agent in such Primary Financing, as the case may
     be, has a nationally recognized reputation.

        (g) Priority. If the managing underwriter for a registration (other than
     with respect to a Registration Statement filed pursuant to Section 2(b) and
     2(c) above) involving an underwritten offering advises the Company that, in
     its opinion, the number of securities of the Company (including Registrable
     Securities) requested to be included in such registration by the holders
     thereof exceeds the number of securities of the

                                       5
<PAGE>

     Company (the "Sale Number") which can be sold in an orderly manner in such
     offering within a price range acceptable to the Company, the Company will
     include (i) first, all securities of the Company that the Company proposes
     to register for its own account and (ii) second, to the extent that the
     number of securities of the Company to be included by the Company is less
     than the Sale Number, subject to the Existing Agreements, a number of the
     Registrable Securities equal to the number derived by multiplying (a) the
     difference between the Sale Number and the securities proposed to be sold
     by the Company, and (b) a fraction the numerator of which is the number of
     Registrable Securities originally requested to be registered by the Holders
     and the denominator of which shall be the aggregate number of all
     securities requested to be registered by all holders of the Company's
     securities (other than securities being registered by the Company itself).
     The Company hereby agrees that it will not hereafter grant registration
     rights to any other holder that are more favorable to such holder than the
     registration rights granted hereunder, it being understood that the Company
     has obligations under the Existing Agreements.

        (h) Legal Counsel. Subject to Section 7 hereof, in the case of a
     mandatory registration pursuant to Section 2(b), the Investors holding a
     majority of the Registrable Securities, and in the case of a demand
     registration pursuant to Section 2(c), the Bridge Lenders, shall have the
     right to select one legal counsel to review and oversee any offering
     pursuant to this Section 2 ("Legal Counsel"), which shall be Paul,
     Hastings, Janofsky & Walker LLP or such other counsel as thereafter
     designated as set forth in above. The Company shall reasonably cooperate
     with Legal Counsel in performing the Company's obligations under this
     Agreement.

        (i) Ineligibility of Form S-3. In the event that Form S-3 is not
     available for the registration of the resale of Registrable Securities
     hereunder, the Company shall (i) register the resale of the Registrable
     Securities on another appropriate form and (ii) undertake to register the
     resale of the Registrable Securities on Form S-3 as soon as such form is
     available, provided that the Company shall maintain the effectiveness of
     the Registration Statement then in effect until such time as a Registration
     Statement on Form S-3 covering the Registrable Securities has been declared
     effective by the SEC.

        (j) Effect of Failure to File and Obtain and Maintain Effectiveness of
     Registration Statement pursuant to a Mandatory Registration. If (i) a
     Registration Statement covering all the Registrable Securities held by an
     Equity Investment Holder and required to be filed by the Company pursuant
     to Section 2(b) of this Agreement is not (A) filed with the SEC on or
     before the Filing Deadline or (B) declared effective by the SEC on or
     before the applicable Effectiveness Deadline or (ii) on any day after the
     Registration Statement has been declared effective by the SEC, sales of all
     the Registrable Securities required to be included on such Registration
     Statement cannot be made pursuant to the Registration Statement (including,
     without limitation, because of a failure to keep the Registration Statement
     effective, to disclose such information as is

                                       6
<PAGE>

     necessary for sales to be made pursuant to the Registration Statement, to
     register sufficient shares of Common Stock), then, as the sole remedy to
     any Equity Investment Holder by reason of any such delay in or reduction of
     its ability to sell the underlying shares of Common Stock, (x) each of the
     exercise price of the Investor Warrants and Agency Warrants (as set forth
     in the applicable Warrants) and the Conversion Price relating to the
     Preferred Stock (as set forth in the Certificate of Designation for the
     Preferred Stock) that then constitute Registrable Securities shall be
     reduced by 5% for each aggregate 30-day period (or pro rated amounts
     thereof for partial 30-day periods) that (i) the Registration Statement is
     not (A) filed with the SEC on or before the Filing Deadline or (B) declared
     effective by the SEC following the Effectiveness Deadline and (ii) after
     the Registration Statement is declared effective by the SEC, such
     Registration Statement is not available for the sale of at least all of the
     Registrable Securities required to be included in such Registration
     Statement, (y) the number of Investor Warrant Shares or Agency Warrant
     Shares that constitute Registrable Securities, as the case may be, shall be
     increased to a number determined by multiplying the number of the
     applicable Warrant Shares purchasable immediately prior to the applicable
     exercise price reduction hereunder by a fraction, the numerator of which
     shall be the exercise price per share in effect prior to the applicable
     exercise price reduction hereunder and the denominator of which shall be
     the exercise price as so reduced, and (z) the number of Preferred
     Conversion Shares shall be increased to a number determined by multiplying
     the number of such Preferred Conversion Shares issuable upon conversion of
     the Preferred Stock immediately prior to the Conversion Price reduction
     hereunder by a fraction, the numerator of which shall be the Conversion
     Price per share in effect prior to the Conversion Price reduction hereunder
     and the denominator of which shall be the Conversion Price as so reduced.
     The foregoing penalties shall not be triggered during any period of time
     when (i) the Placement Agent and the Subscribers (as such terms are defined
     in the Agency Agreement) have the right to designate persons that
     constitute a majority of the board of directors of the Company, (ii) a
     Delay Period (as hereinafter defined) and the seven days following a Delay
     Period or (iii) the Holder is otherwise able to sell its securities under
     Rule 144 (with respect to such saleable securities).

        (k) Sufficient Number of Shares Registered. In the event the number of
     shares available under a Registration Statement filed pursuant to Section
     2(b) or 2(c) is insufficient to cover all of the Registrable Securities
     which such Registration Statement is required to cover, the Company shall
     amend the Registration Statement, or file a new Registration Statement (on
     the short form available therefor, if applicable), or both, so as to cover
     at least 100% of the Registrable Securities (based on the market price of
     the Common Stock on the trading day immediately preceding the date of
     filing of such amendment or new Registration Statement), in each case, as
     soon as reasonably practicable, but in any event not later than fifteen
     (15) business days after the necessity therefor arises. The Company shall
     cause such amendment and/or new Registration Statement to become effective
     as soon as practicable following the filing thereof. For purposes of the
     foregoing provision, with respect to a Registration Statement filed
     pursuant to Section 2(b) hereof, the number of shares available under a
     Registration

                                       7
<PAGE>

     Statement shall be deemed "insufficient to cover all of the Registrable
     Securities" if the number of Registrable Securities issued or issuable upon
     conversion of the Preferred Stock and exercise of the Investor Warrants and
     Agency Warrants covered by such Registration Statement is greater than the
     number of shares of Common Stock available for resale under the
     Registration Statement to cover shares issued or issuable upon conversion
     of the Preferred Stock and exercise of the Investor Warrants and Agency
     Warrants. For purposes of the calculation set forth in the foregoing
     sentence, any restrictions on the conversion of the Preferred Stock and the
     exercise of the Investor Warrants or Agency Warrants shall be disregarded
     and such calculation shall assume that the Preferred Stock is then
     convertible into shares of Common Stock at the then prevailing Conversion
     Price (as defined in the Company's Certificate of Designation for the
     Preferred Stock) and the Investor Warrants or Agency Warrants, as the case
     may be, are then exercisable for shares of Common Stock at the then
     prevailing applicable Warrant Share Price (as defined in the applicable
     Warrant). With respect to a Registration Statement filed pursuant to
     Section 2(c) hereof, the number of shares available under a Registration
     Statement shall be deemed "insufficient to cover all of the Registrable
     Securities" if the number of Registrable Securities issued or issuable upon
     exercise of the Bridge Warrants covered by such Registration Statement is
     greater than the number of shares of Common Stock available for resale
     under the Registration Statement to cover shares issued or issuable upon
     exercise of the Bridge Warrants. For purposes of the calculation set forth
     in the foregoing sentence, any restrictions on the exercise of the Bridge
     Warrants shall be disregarded and the Bridge Warrants are then exercisable
     for shares of Common Stock at the then prevailing Warrant Share Price (as
     defined in the Bridge Warrant).

     3. Obligations of the Company. Whenever required under this Agreement to
effect the registration of any Registrable Securities, the Company will, as
expeditiously as commercially practicable, fulfill the following obligations:

        (a) The Company shall promptly prepare and file with the SEC a
     Registration Statement with respect to the Registrable Securities (but in
     no event later than the Filing Deadline with respect to a Registration
     Statement to be filed pursuant to Section 2(b)) and use its reasonable best
     efforts to cause such Registration Statement to become effective (but, in
     the case of registration pursuant to Section 2(b) hereof, in no event later
     than the applicable Effectiveness Deadline). The Company will keep such
     Registration Statement effective for up to 21 months but not, in any event,
     after such securities cease being Registrable Securities (the "Registration
     Period") and subject to any Delay Periods, as defined below. Any
     Registration Statement (including any amendments or supplements thereto and
     prospectuses contained therein) shall not contain any untrue statement of a
     material fact or omit to state a material fact required to be stated
     therein, or necessary to make the statements therein, in light of the
     circumstances in which they were made, not misleading.

          The Company shall not be required to keep a Registration Statement

                                       8
<PAGE>

     effective during any Delay Period. The term "Delay Period" shall mean with
     respect to any obligation to keep any Registration Statement usable for
     resales pursuant to this Section 3, the period when there exist
     circumstances relating to a material pending development, including but not
     limited to a pending or contemplated material acquisition or merger or
     other material transaction or similar event, which would require disclosure
     by the Company in such Registration Statement of material information which
     the Company determines in good faith that it has a bona fide business
     purpose for keeping confidential and non-public and the non-disclosure of
     which in such Registration Statement might cause such Registration
     Statement to fail to comply with applicable disclosure requirements. A
     Delay Period shall commence on and include the date that the Company gives
     written notice (a "Delay Notice") to the Holders that it is not required to
     cause a Registration Statement to be declared effective or the prospectus
     contained in the Registration Statement is no longer usable as a result of
     a material pending development and shall end on the date when the Holders
     are advised in writing by the Company that the current Delay Period has
     terminated (it understood that the Company shall give such notice to all
     Holders promptly upon making the determination that the Delay Period has
     ended); provided, however, that the Company shall not be entitled to Delay
     Periods having durations that exceed one hundred and eighty (180) days in
     the aggregate during any calendar year. Any Delay Period shall extend the
     period up to which the Company is obligated to keep a Registration
     Statement effective set forth in the previous paragraph by the period of
     such Delay Period.

        (b) The Company shall prepare and file with the SEC such amendments and
     supplements to such Registration Statement and the prospectus used in
     connection with such Registration Statement as may, to its knowledge, be
     necessary to comply with the provisions of the 1933 Act with respect to the
     disposition of all Registrable Securities covered by such Registration
     Statement until such time as all of such Registrable Securities shall have
     been disposed of in accordance with the intended methods of disposition by
     the seller or sellers thereof as set forth in such Registration Statement.
     In the case of amendments and supplements to a Registration Statement which
     are required to be filed pursuant to this Agreement (including pursuant to
     this Section 3(b)) by reason of the Company filing a report on Form 10-K,
     Form 10-Q or Form 8-K or any analogous report under the Securities Exchange
     Act of 1934, as amended (the "1934 Act"), the Company shall have
     incorporated such report by reference into the Registration Statement, if
     applicable, or shall file such amendments or supplements with the SEC on
     the same day on which the 1934 Act report is filed which created the
     requirement for the Company to amend or supplement the Registration
     Statement.

        (c) The Company shall (1) permit Legal Counsel to review and comment
     upon those sections of (i) a Registration Statement relating to the Bridge
     Lenders or Investors a reasonable period prior to its filing with the SEC,
     and (ii) all other sections of a Registration Statement and all amendments
     and supplements to all Registration Statements, which are applicable to the
     Bridge Lenders or Investors (except

                                       9
<PAGE>

     for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
     Reports on Form 8-K and any similar or successor report and registration
     statements on Form S-8) a reasonable period prior to their filing with the
     SEC and (2) not file any document in a form to which Legal Counsel
     reasonably objects. The Company shall not submit a request for acceleration
     of the effectiveness of a Registration Statement or any amendment or
     supplement thereto without the prior approval of Legal Counsel, which
     consent shall not be unreasonably withheld. The Company shall furnish to
     Legal Counsel, without charge, (i) any correspondence from the SEC or the
     staff of the SEC to the Company or its representatives relating to any
     Registration Statement, (ii) promptly after the same is prepared and filed
     with the SEC, one copy of any Registration Statement and any amendment(s)
     thereto, including financial statements and schedules and all exhibits and
     (iii) upon the effectiveness of any Registration Statement, one copy of the
     prospectus included in such Registration Statement and all amendments and
     supplements thereto. The Company shall reasonably cooperate with Legal
     Counsel in performing the Company's obligations pursuant to this Section 3.

        (d) The Company shall furnish to each of the Holders such numbers of
     copies of a prospectus, including a preliminary prospectus, in conformity
     with the requirements of the 1933 Act, and such other documents as it may
     reasonably request in order to facilitate the disposition of Registrable
     Securities owned by such Holders.

        (e) The Company shall use its reasonable best efforts to (i) register
     and qualify, unless an exemption from registration and qualification
     applies, the Registrable Securities covered by a Registration Statement
     under all jurisdiction's securities or "blue sky" laws in the United
     States, (ii) prepare and file in those jurisdictions, such amendments
     (including post-effective amendments) and supplements to such registrations
     and qualifications as may be reasonably necessary to maintain the
     effectiveness thereof during the Registration Period, (iii) take such other
     actions as may be reasonably necessary to maintain such registrations and
     qualifications in effect at all times during the Registration Period, and
     (iv) take all other actions reasonably necessary or advisable to qualify
     the Registrable Securities for sale in such jurisdictions; provided,
     however, that the Company shall not be required in connection therewith or
     as a condition thereto to (x) qualify to do business in any jurisdiction
     where it would not otherwise be required to qualify but for this Section
     3(e), (y) subject itself to general taxation in any such jurisdiction, or
     (z) file a general consent to service of process in any such jurisdiction.
     The Company shall promptly notify Legal Counsel and each Holder who holds
     Registrable Securities of the receipt by the Company of any notification
     with respect to the suspension of the registration or qualification of any
     of the Registrable Securities for sale under the securities or "blue sky"
     laws of any jurisdiction in the United States or its receipt of actual
     notice of the initiation or threat of any proceeding for such purpose.

        (f) As promptly as practicable after becoming aware of such event or
     development, the Company shall notify Legal Counsel and each Holder in
     writing of the

                                      10
<PAGE>

     happening of any event as a result of which the prospectus included in a
     Registration Statement, as then in effect, includes an untrue statement of
     a material fact or omission to state a material fact required to be stated
     therein or necessary to make the statements therein, in light of the
     circumstances under which they were made, not misleading (provided that in
     no event shall such notice contain any material, nonpublic information),
     and promptly prepare a supplement or amendment to such Registration
     Statement to correct such untrue statement or omission, and deliver copies
     of such supplement or amendment to Legal Counsel and each Holder as they
     may reasonably request. The Company shall also promptly notify Legal
     Counsel and each Holder in writing (i) when a prospectus or any prospectus
     supplement or post-effective amendment has been filed, and when a
     Registration Statement or any post-effective amendment has become
     effective, (ii) of any request by the SEC for amendments or supplements to
     a Registration Statement or related prospectus or related information, and
     (iii) of the Company's reasonable determination that a post-effective
     amendment to a Registration Statement would be appropriate.

        (g) The Company shall use its reasonable best efforts to prevent the
     issuance of any stop order or other suspension of effectiveness of a
     Registration Statement, or the suspension of the qualification of any of
     the Registrable Securities for sale in any jurisdiction, however, if such
     an order or suspension is issued, the Company shall obtain the withdrawal
     of such order or suspension at the earliest possible moment and to notify
     Legal Counsel and each Holder who holds Registrable Securities being sold
     of the issuance of such order and the resolution thereof or its receipt of
     actual notice of the initiation or threat of any proceeding for such
     purpose.

        (h) At the reasonable request of any Holder and at the expense of such
     Holder, the Company shall furnish to such Holder, on the date of the
     effectiveness of the Registration Statement and thereafter from time to
     time on such dates as any of the Holders may reasonably request (i) a
     letter, dated such date, from the Company's independent certified public
     accountants in form and substance as is customarily given by independent
     certified public accountants to underwriters in an underwritten public
     offering, provided that the Holder provides a due diligence letter in
     accordance with SAS 72 and such a letter may otherwise be delivered in
     accordance with the then prevailing professional practice, and (ii) an
     opinion, dated as of such date, of counsel representing the Company for
     purposes of such Registration Statement, in form, scope and substance as is
     customarily given in an underwritten public offering, addressed to the
     Holders.

        (i) The Company shall cause all the Registrable Securities covered by a
     Registration Statement to be listed on each securities exchange on which
     securities of the same class or series issued by the Company are then
     listed, if any, if the listing of such Registrable Securities is then
     permitted under the rules of such exchange. The Company shall pay all fees
     and expenses in connection with satisfying its obligation under this
     Section 3(i).

                                      11
<PAGE>

        (j) The Company shall make documents, files, books, records, officers,
     directors and employees of the Company reasonably available to any Holder,
     Legal Counsel and one firm of accountants or other agents retained by the
     Holders and provided the underwriters, if any, shall have agreed to be
     bound by the provisions of this Section 3(j), to such underwriters
     (collectively the "Inspectors"), and make such other accommodations as are
     reasonably necessary for the Inspectors, if any, to perform a due diligence
     review of the Company; provided, however, that all such information
     ("Confidential Information") will be kept confidential and not utilized by
     the Inspectors except as contemplated herein and except as required by law
     or court order. The term "Confidential Information" does not include
     information that (i) is already in possession of such other party (other
     than that which is subject to another confidentiality agreement or
     fiduciary duty), (ii) becomes generally available to the public, or (iii)
     becomes available on a non-confidential basis from a source other than the
     Company. Each Holder agrees that it shall, upon learning that disclosure of
     such Confidential Information is sought in or by a court or governmental
     body of competent jurisdiction or through other means, give prompt notice
     to the Company and allow the Company, at its expense, to undertake
     appropriate action to prevent disclosure of, or to obtain a protective
     order for, the information deemed confidential.

        (k) The Company shall hold in confidence and not make any disclosure of
     information concerning any Holder provided to the Company unless (i)
     disclosure of such information is necessary to comply with federal or state
     securities laws, (ii) the disclosure of such information is necessary to
     avoid or correct a misstatement or omission in any Registration Statement,
     (iii) the release of such information is ordered pursuant to a subpoena or
     other final, non-appealable order from a court or governmental body of
     competent jurisdiction, (iv) such information has been made generally
     available to the public other than by disclosure in violation of this
     Agreement or any other agreement or (v) such Holder consents to the form
     and content of any such disclosure. The Company agrees that it shall, upon
     learning that disclosure of such information concerning any Holder is
     sought in or by a court or governmental body of competent jurisdiction or
     through other means, give prompt written notice to such Holder and allow
     such Holder, at the Holder's expense, to undertake appropriate action to
     prevent disclosure of, or to obtain a protective order for, such
     information.

        (l) The Company shall cooperate with each of the Holders who hold
     Registrable Securities being offered, and to the extent applicable, to
     facilitate the timely preparation and delivery of certificates (not bearing
     any restrictive legend) representing the Registrable Securities to be
     offered pursuant to a Registration Statement and enable such certificates
     to be in such denominations or amounts, as the case may be, as the Holders
     may reasonably request and registered in the names of the transferee
     thereof, provided that the Holder certifies that the sale was made in
     accordance with the plan of distribution contained in the prospectus and
     the transferee was delivered a current prospectus as required under the
     1933 Act.

                                      12
<PAGE>

        (m) The Company shall provide a transfer agent and registrar of all such
     Registrable Securities not later than the effective date of such
     Registration Statement.

        (n) If requested by any Holder, the Company shall (i) as soon as
     practicable incorporate in a prospectus supplement or post-effective
     amendment such information as such Holder requests to be included therein
     relating to the sale and distribution of Registrable Securities, including,
     without limitation, information with respect to the number of Registrable
     Securities being offered or sold, the purchase price being paid therefor
     and any other terms of the offering of the Registrable Securities to be
     sold in such offering; (ii) as soon as practicable make all required
     filings of such prospectus supplement or post-effective amendment after
     being notified of the matters to be incorporated in such prospectus
     supplement or post-effective amendment; and (iii) supplement or make
     amendments to any Registration Statement if reasonably requested by any
     Holder of such Registrable Securities.

        (o) The Company shall otherwise comply with all applicable rules and
     regulations of the SEC in connection with any registration hereunder.

        (p) Within two (2) business days after a Registration Statement which
     covers applicable Registrable Securities is ordered effective by the SEC,
     the Company shall deliver, and shall cause legal counsel for the Company to
     deliver, to the transfer agent for such Registrable Securities (with copies
     to the Holders whose Registrable Securities are included in such
     Registration Statement) confirmation that such Registration Statement has
     been declared effective by the SEC in the form attached hereto as
     Exhibit A.

        (q) The Company and each Holder shall provide such opinions,
     certifications, indemnifications, and take such other actions, including,
     without limitation, entering into such agreements (including underwriting
     agreements), as are reasonably required and appropriate, to permit the
     Holders to make a public offering of the Registrable Securities requested
     to be registered on customary terms, in which event the Company's
     obligations hereunder shall be conditioned on performance by the Holders of
     their obligations under such arrangements.

     4. Furnish Information. The Company's obligation to cause any Registration
Statement to become effective in connection with distribution of any Registrable
Securities pursuant to this Agreement is contingent upon each Holder, with
reasonable promptness, furnishing to the Company such information regarding
itself, the Registrable Securities held by it, and the intended method of
disposition of such securities, as is required pursuant to Regulation S-K
promulgated under the 1933 Act, to effect the registration of the Registrable
Securities.

     5. Indemnification. In the event of any registration under this Agreement:

                                      13
<PAGE>

        (a) The Company will indemnify and hold harmless each Holder and its
     officers, directors, partners and affiliates (and their officers, directors
     and partners), any underwriter (as defined in the 1933 Act) for each Holder
     and each person (and its officers, directors, partners and affiliates), if
     any, who controls any Holder or underwriter within the meaning of the 1933
     Act or the 1934 Act (each a "Company Indemnified Person"), against any
     losses, claims, damages, or liabilities (joint or several) to which they
     may become subject under the 1933 Act, or the 1934 Act or other federal or
     state law, insofar as such losses, claims, damages, or liabilities (or
     actions in respect thereof) arise out of or are based upon any of the
     following statements, omissions or violations (collectively a "Violation"):
     (i) any untrue statement or alleged untrue statement of a material fact
     contained in such Registration Statement, including any preliminary
     prospectus or final prospectus contained therein or any amendments or
     supplements thereto or (ii) the omission or alleged omission to state
     therein a material fact required to be stated therein, or necessary in
     order to make the statements therein, in light of the circumstances under
     which they were made, not misleading, and the Company will pay to each such
     Company Indemnified Person, as incurred, any legal or other expenses
     reasonably incurred by or on behalf of him in connection with investigating
     or defending any such loss, claim, damage, liability, or action; provided,
     however, that the indemnity agreement contained in this subsection (a)
     shall not apply to amounts paid in settlement of any such loss, claim,
     damage, liability, or action if such settlement is effected without the
     consent of the Company (which consent shall not be unreasonably withheld),
     nor will the Company be liable in any such case for any such loss, claim,
     damage, liability, or action to the extent that it arises out of or is
     based upon (1) a Violation which occurs solely as the result of the written
     information furnished by any Holder, underwriter or controlling person
     seeking indemnification hereunder, as applicable, expressly for inclusion
     in the Registration Statement or (2) with respect to any underwriter and
     controlling person of such underwriter (and their respective officers and
     directors), a Violation which results from the fact that there was not sent
     or given to a person who bought Registrable Securities, at or prior to the
     written confirmation of the sale, a copy of the final prospectus, as then
     amended or supplemented, if the Company had previously furnished copies of
     such prospectus hereunder and such prospectus corrected the misstatement or
     omission forming the basis of the Violation.

        (b) Each Holder will indemnify and hold harmless the Company, each of
     its directors, each of its officers who has signed the Registration
     Statement, each person, if any, who controls the Company within the meaning
     of the 1933 Act, any underwriter and any controlling person of any such
     underwriter or other holder (each a "Holder Indemnified Person"), against
     any losses, claims, damages, or liabilities (joint or several) to which any
     of the foregoing persons may become subject, under the 1933 Act, or the
     1934 Act or other federal or state law, insofar as such losses, claims,
     damages, or liabilities (or action in respect thereto) arise out of or are
     based upon any Violation, in each case to the extent (and only to the
     extent) that such Violation occurs solely as a result of the written
     information furnished by each Holder expressly for inclusion in the
     applicable Registration Statement; and such Holder will pay, as incurred,
     any legal or

                                      14
<PAGE>

     other expenses reasonably incurred by any Holder Indemnified Person
     intended to be indemnified pursuant to this subsection (b), in connection
     with investigating or defending any such loss, claim, damage, liability, or
     action; provided, however, that any Holder's liability pursuant to this
     subsection (b) shall be limited to the amount of the net proceeds received
     by such Holder from the sale of the Registrable Securities sold by it, and
     further provided that the indemnity agreement contained in this subsection
     (b) does not apply to amounts paid in settlement of any such loss, claim,
     damage, liability or action if such settlement is effected without the
     consent of such Holder, which consent shall not be unreasonably withheld.

        (c) Promptly after receipt by an indemnified party under this Section 5
     of notice of the commencement of any action (including any governmental
     action), such indemnified party will, if a claim in respect thereof is to
     be made against any indemnifying party under this Section 5, deliver to the
     indemnifying party a written notice of the commencement of such action and
     the indemnifying party will have the right to participate in, and, to the
     extent the indemnifying party so desires, jointly with any other
     indemnifying party similarly noticed, to assume the defense thereof with
     counsel mutually satisfactory to the parties; provided, however, that an
     indemnified party (together with all other indemnified parties which may be
     represented without conflict by one counsel) will have the right to retain
     one separate counsel, with the fees and expenses to be paid by the
     indemnifying party, if representation of the indemnified party by the
     counsel retained by the indemnifying party would be inappropriate due to
     actual or potential differing interests between the indemnified party and
     any other party represented by such counsel in the same proceeding. If the
     indemnifying party shall fail to defend the action, the indemnified party
     may conduct its own defense and shall be entitled to reimbursement for the
     costs of such defense. The failure to deliver written notice to the
     indemnifying party within a reasonable time of the commencement of any such
     action shall not relieve such indemnifying party of any liability to the
     indemnified party under this Agreement, except to the extent that the
     indemnifying party is actually prejudiced by such failure. The omission so
     to deliver written notice to the indemnifying party does not relieve it of
     any liability that it may have to any indemnified party otherwise than
     under this Agreement. No indemnifying party under this Agreement will enter
     into any settlement or consent to any entry of judgment which does not
     include as an unconditional term thereof the giving by the claimant or
     plaintiff to the indemnified party of a release from all liability in
     respect of such claim or litigation.

        (d) If the indemnification provided for in this Section 5 is held by a
     court of competent jurisdiction to be unavailable to an indemnified party
     or is insufficient to indemnify an indemnified party with respect to any
     loss, liability, claim, damage, or expense referred to therein, then the
     indemnifying party, in lieu of or in addition to, as appropriate,
     indemnifying such indemnified party hereunder, will contribute to the
     amount paid or payable by such indemnified party as a result of such loss,
     liability, claim, damage, or expense in such proportion as is appropriate
     to reflect the relative fault of the indemnifying party on the one hand and
     of the indemnified party on the other in

                                      15
<PAGE>

     connection with the statements or omissions that resulted in such loss,
     liability, claim, damage, or expense as well as any other relevant
     equitable considerations. The relative fault of the indemnifying party and
     of the indemnified party will be determined by reference to, among other
     things, whether the untrue or alleged untrue statement of a material fact
     or the omission to state a material fact relates to information supplied by
     the indemnifying party or by the indemnified party and the parties'
     relative intent, knowledge, access to information, and opportunity to
     correct or prevent such statement or omission. The obligation of any Holder
     to make a contribution pursuant to this Section 5 (d) shall be limited to
     the net proceeds received by such Holder from the sale of the Registrable
     Securities sold by it, less any amounts paid pursuant to Section 5(b).

        (e) The obligations of the Company and each of the Holders under this
     Section 5 will survive the completion of any offering of Registrable
     Securities in a Registration Statement under this Agreement, and otherwise.

     6. Expenses of Registration. All expenses of the Company incurred in
connection with any registration, qualification or compliance pursuant to this
Agreement, including, without limitation, all registration, filing and
qualification fees, printing expenses, fees and disbursements of counsel for the
Company and expenses of any special audits incidental to or required by such
registration, qualification or compliance will be borne by the Company. In
addition, the Company shall reimburse the Holders for the reasonable fees and
disbursements of Legal Counsel in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3 of this Agreement which amount shall
be limited to $15,000.

     7. Assignment of Registration Rights. The rights under this Agreement shall
be automatically assignable by any Holder to any transferee of all or any
portion of Registrable Securities if: (i) such Holder agrees in writing with the
transferee or assignee to assign such rights, and a copy of such agreement is
furnished to the Company within a reasonable time after such assignment; (ii)
the Company is, within a reasonable time after such transfer or assignment,
furnished with written notice of (a) the name and address of such transferee or
assignee, and (b) the securities with respect to which such registration rights
are being transferred or assigned; (iii) immediately following such transfer or
assignment the further disposition of such securities by the transferee or
assignee is restricted under the 1933 Act and applicable state securities laws;
(iv) at or before the time the Company receives the written notice contemplated
by clause (ii) of this sentence the transferee or assignee agrees in writing
with the Company to be bound by all of the provisions contained herein; and (v)
such transfer shall have been made in accordance with the applicable
requirements of the Equity Investment, including, without limitation, applicable
lock-up agreements.

     8. Amendments and Consents. The terms of the Agreement may be amended,
modified or waived by agreement of the Corporation, Commonwealth and the
Committee (as defined in the Subscription Agreement) to the extent they relate
to the

                                      16
<PAGE>

Equity Investment Holders and by the Corporation and the Bridge Investors to the
extent they relate to Bridge Loan Holders. All consents to be made by the Equity
Investment Holders pursuant to this Agreement shall be made by Commonwealth and
the Committee and all consents to be made by the Bridge Investors pursuant to
this Agreement shall be made by the Bridge Investors. Any amendment, waiver or
consent effected in accordance with this Section 8 will be binding upon each
holder of any Registrable Securities then outstanding, each future holder of all
such Registrable Securities, and the Company. No consideration shall be offered
or paid to any Person to amend or consent to a waiver or modification of any
provision of this Agreement or provide consent unless the same consideration
also is offered to all of the parties to this Agreement. The Company is entitled
to rely upon and assume the accuracy and completeness of the certificate
supplied by Commonwealth and the Committee affirming that all requisite
approvals and authorizations were obtained before any such amendment,
modification, waiver or consent was made.

     9. Miscellaneous.

        (a) Further Assurances. The Company and each of the Holders agree to
     execute and deliver such other documents or agreements as may reasonably be
     necessary or desirable for the implementation of this Agreement and the
     consummation of the transactions contemplated hereby.

        (b) Owner of Registrable Securities. A Person is deemed to be a holder
     of Registrable Securities whenever such Person owns or is deemed to be
     owner of record of such Registrable Securities. If the Company receives
     conflicting instructions, notices or elections from two or more Persons
     with respect to the same Registrable Securities, the Company shall act upon
     the basis of instructions, notice or election received from the registered
     owner of such Registrable Securities.

        (c) Submission to Jurisdiction. The parties hereto hereby irrevocably
     submit to the non-exclusive jurisdiction of any federal or state court
     located within the Borough of Manhattan, State of New York over any dispute
     arising out of or relating to this Agreement or any of the transactions
     contemplated hereby and each party hereby irrevocably agrees that all
     claims in respect of such dispute or any suit, action or proceeding related
     thereto may be heard and determined in such courts. The parties hereby
     irrevocably waive, to the fullest extent permitted by applicable law, any
     objection which they may now or hereafter have to the laying of venue of
     any such dispute brought in such court or any defense of inconvenient forum
     for the maintenance of such dispute. Each of the parties hereto agrees that
     a judgment in any such dispute may be enforced in other jurisdictions by
     suit on the judgment or in any other manner provided by law.

        (d) Consent to Service of Process. Each of the parties hereto hereby
     consents to process being served by any party to this Agreement in any
     suit, action or proceeding by the mailing of a copy thereof in accordance
     with the provisions of Section 10(i) hereof.

                                      17
<PAGE>

        (e) Entire Agreement; Amendments and Waivers. This Agreement, the
     Investor Warrants, the Agency Warrants, the Certificate of Designation of
     the Preferred Stock and the Subscription Agreement represent the entire
     understanding and agreement among the parties hereto with respect to the
     subject matter hereof and can be amended, supplemented or changed, and any
     provision hereof can be waived, only by written instrument making specific
     reference to this Agreement signed by the parties hereto. The waiver by any
     party hereto of a breach of any provision of this Agreement shall not
     operate or be construed as a further or continuing waiver of such breach or
     as a waiver of any other or subsequent breach. No failure on the part of
     any party to exercise, and no delay in exercising, any right, power or
     remedy hereunder shall operate as a waiver thereof, nor shall any single or
     partial exercise of such right, power or remedy by such party preclude any
     other or further exercise thereof or the exercise of any other right, power
     or remedy. All remedies hereunder are cumulative and are not exclusive of
     any other remedies provided by law.

        (f) Governing Law. This Agreement shall be governed by and construed in
     accordance with the laws of the State of New York without giving effect to
     the principles of conflict of laws thereunder which would specify the
     application of the law of another jurisdiction.

        (g) Headings; Interpretive Matters. The section headings of this
     Agreement are for reference purposes only and are to be given no effect in
     the construction or interpretation of this Agreement. No provision of this
     Agreement will be interpreted in favor of, or against, any of the parties
     hereto by reason of the extent to which any such party or its counsel
     participated in the drafting thereof or by reason of the extent to which
     any such provision is inconsistent with any prior draft hereof or thereof.

        (h) Notices. All notices and other communications under this Agreement
     shall be in writing and shall be deemed given when delivered personally,
     telecopied or mailed by certified mail, return receipt requested, to the
     parties at the address or telecopier number indicated in the signature
     pages and Schedule I hereof. All notices are effective upon receipt or upon
     refusal if properly delivered.

        (i) Rule 144 Requirements. The Company covenants that it will file the
     reports required to be filed by it under the 1933 Act and the 1934 Act, and
     the rules and regulations adopted by the SEC thereunder, provided, however,
     the Company may delay any such filing but only pursuant to Rule 12b-25
     under the 1934 Act; and it will take such further action as any Holder of
     Registrable Securities may reasonably request (including, without
     limitation, promptly obtaining and required legal opinions, if any, from
     Company counsel necessary to effect the sale of Registrable Securities
     under Rule 144 (and paying the related fees and expenses of such counsel),
     all to the extent required from time to time to enable such Holder to sell
     Registrable Securities without registration under the 1933 Act within the
     limitation of the exemptions provided by (a) Rule 144 under the Act, as
     such Rule may be amended from time to time, or (b) any similar rule or

                                      18
<PAGE>

     regulation hereafter adopted by the SEC. Upon the request of any Holder of
     Registrable Securities, the Company will deliver to such Holder a written
     statement as to whether it has complied with such requirements. In the
     event of any breach by the Company of its covenants and obligations
     hereunder, then, as the sole relief for damages to any Holder by reason of
     any delay or inability to sell the underlying shares of Common Stock (which
     remedy shall be the exclusive remedy available at law or in equity) (x) the
     exercise price of the Bridge Warrants, Investor Warrants and Agency
     Warrants (as set forth in the applicable Warrants) and the Conversion Price
     relating to the Preferred Stock (as set forth in the Certificate of
     Designation) shall be reduced by 5% for each aggregate 30-day period (or
     pro rated amounts thereof for partial 30-day periods) that the Holder is
     delayed from selling, or unable to sell, Registrable Securities under Rule
     144 due to (i) the Company's failure to promptly provide the requisite
     legal opinion as described above or (ii) the Company's failure to comply
     with the filing and other requirements under Rule 144 necessary to make
     such Rule available to the Holders, (y) the number of Bridge Warrant
     Shares, Investor Warrant Shares and Agency Warrant Shares shall be
     increased to a number determined by multiplying the number of applicable
     Warrant Shares purchasable immediately prior to the applicable exercise
     price reduction hereunder by a fraction, the numerator of which shall be
     the exercise price per share in effect prior to the applicable exercise
     price reduction hereunder and the denominator of which shall be the
     exercise price as so reduced, and (z) the number of Preferred Conversion
     Shares shall be increased to a number determined by multiplying the number
     of Preferred Conversion Shares issuable upon conversion of the Preferred
     Stock immediately prior to the applicable Conversion Price reduction
     hereunder by a fraction, the numerator of which shall be the Conversion
     Price per share in effect prior to the Conversion Price reduction hereunder
     and the denominator of which shall be the Conversion Price as so reduced.
     The foregoing penalties shall not apply to any breach by the Company of its
     covenants and obligations hereunder which (i) may be occurring for up to 10
     days during any 90-day period, (ii) during any Delay Period or (iii) if
     such securities are otherwise able to be sold under an effective
     registration statement or Rule 144(k). In addition, the foregoing penalties
     shall not apply if the Company is subject to the penalties specified in
     Section 2(j) hereof.

        (j) Severability. If any provision of this Agreement is invalid or
     unenforceable, the balance of this Agreement shall remain in effect.

        (k) Binding Effect; Assignment. Subject to Section 7, this Agreement
     shall be binding upon and inure to the benefit of the parties and their
     respective successors and permitted assigns. Nothing in this Agreement
     shall create or be deemed to create any third-party beneficiary rights in
     any person not a party to this Agreement except as provided below and in
     Section 8. Upon any assignment, the references in this Agreement to any
     Holder shall also apply to any such assignee unless the context otherwise
     requires.

                                      19
<PAGE>

        (l) Termination. The obligations of the Company contained in Section 2
     hereof shall expire and be of no force and effect on June 23, 2005.

        (m) Counterparts. This Agreement may be executed simultaneously in two
     or more counterparts, each of which shall be deemed an original but all of
     which together shall constitute one and the same instrument.

        (n) No Inconsistent Agreement; Coordination with Existing Agreements.
     The rights granted to the Holders pursuant to this Agreement are not
     intended to, and shall not be interpreted to, violate the rights granted
     under the Existing Agreements ("Prior Rights"), and should any conflict
     between the Prior Rights and the rights hereunder arise, the rights
     hereunder shall be interpreted in a manner that does not violate the Prior
     Rights and therefore, with respect to the conflicting provision, shall be
     deemed subordinate to the Prior Rights. The Company will not hereafter
     enter into any agreement with respect to its securities which violates the
     rights granted to the Holders in this Agreement.

           [The rest of this page has been intentionally left blank]

                                      20
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed or have caused
this Agreement to be executed by their respective officers thereunto duly
authorized, as of the date first written above.

                                                drkoop.com, Inc.

                                                By: /s/ Donald Hackett
                                                   --------------------------
                                                   Name:  Donald Hackett
                                                   Title: CEO
                                                   Notice address:
The foregoing Agreement is
hereby accepted as of the date
first above written:

COMMONWEALTH ASSOCIATES, L.P.

By Joseph P. Wynne
  ---------------------------
   Title: CFO

COMVEST VENTURE PARTNERS, L.P.

By Joseph P. Wynne
  ---------------------------
   Title: CFO

                                      21

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