Document:

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                                                                     EXHIBIT 4.4

NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED OR
REGISTERED UNDER STATE SECURITIES OR BLUE SKY LAWS. THIS WARRANT AND THE
SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN ACQUIRED FOR INVESTMENT AND
NOT WITH A VIEW TO DISTRIBUTION, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED OF EXCEPT IN COMPLIANCE WITH
THE SECURITIES ACT OF 1933, AS AMENDED, APPLICABLE STATE SECURITIES OR BLUE SKY
LAWS AND THE APPLICABLE RULES AND REGULATIONS THEREUNDER. THE ISSUER OF THESE
SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY
SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS
IN COMPLIANCE WITH THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE
STATE SECURITIES LAWS.

                              drugstore.com, inc.

              Warrant for the Purchase of Shares of Common Stock
              --------------------------------------------------

          Name of Registered Holder:          Tel-Drug, Inc.
                                              (the "Initial Holder")

          No. W-2                             500,000 Shares of Common Stock

          This certifies that, for value received, the Initial Holder (or any
registered assignee of the Initial Holder) (each of the Initial Holder and any
such registered assignee being hereinafter referred to as the "Holder"), is
entitled, subject to the conditions and upon the terms of this Warrant, to
purchase from drugstore.com, inc. (the "Company"), at any time or from time to
time during the Exercise Period (as defined in Section 1 hereof), the number of
shares of Common Stock (as defined in Section 1 hereof) set forth above.  The
number of shares of Common Stock to be received upon the exercise of this
Warrant and the Exercise Price are subject to adjustment from time to time as
hereinafter set forth.

          Section 1.  Certain Definitions.  Terms defined in the preceding
                      -------------------
paragraph and elsewhere in this Warrant have the respective meanings provided
for therein.  The following additional terms, as used herein, have the following
respective meanings:

          "Act" means the Securities Act of 1933, as amended.

          "Common Stock" means the fully paid and nonassessable shares of common
stock of the Company, $.0001 par value per share, together with any other equity
securities that may be issued by the Company in addition thereto or in
substitution therefor in accordance with Section 7 herein.

          "Exercise Period" means the period beginning on the date hereof and
ending on June 26, 2005.

                                       1
<PAGE>

          "Exercise Price" means $7.76 per share, subject to change or
adjustment pursuant to Section 7 hereof.

          "Reorganization Event" means (i) any capital reorganization or
reclassification of the Common Stock (other than as a result of a subdivision,
combination or stock dividend for which adjustment is provided in Section 7(a)
hereof and other than a change in the par value of the Common Stock or an
increase in the authorized capital stock of the Company not involving the
issuance of any shares thereof), or (ii) any consolidation of the Company with,
or merger of the Company with or into, another person (including any
partnership, joint venture, limited liability company, limited partnership,
corporation, trust, other entity or group thereof) (other than a consolidation
or merger in which the Company is the surviving corporation and which does not
result in a reclassification or change of the outstanding Common Stock (or for
which adjustment is provided in Section 7(a) hereof)) or any sale, lease,
transfer or conveyance of all or substantially all of the property and assets of
the Company.

          "Warrant" means this warrant and any warrant or warrants which may be
issued pursuant to Section 4 hereof in substitution or exchange for or upon
transfer of this warrant, any warrant which may be issued pursuant to Section 2
hereof upon partial exercise of this warrant and any warrant which may be issued
pursuant to Section 5 hereof upon the loss, theft, destruction or mutilation of
this warrant.

          "Warrant Register" means the register maintained at the principal
office of the Company, or at the office of its agent, in which the name of the
Holder of this Warrant shall be registered.

          "Warrant Shares" means the shares of Common Stock, as adjusted from
time to time in accordance with Section 7 hereof, deliverable upon exercise of
this Warrant.

          Section 2.  Exercise of Warrant.  Subject to compliance with all
                      -------------------
applicable securities laws, this Warrant may be exercised, in whole or in part,
at any time or from time to time during the Exercise Period, by presentation and
surrender hereof to the Company at its principal office at the address set forth
on the signature page hereof (or at such other address of the Company or any
agent appointed by the Company to act hereunder as the Company or such agent may
hereafter designate in writing to the Holder), with the exercise form annexed
hereto (the "Exercise Form") duly executed and accompanied by cash or a
certified or official bank check drawn to the order of "drugstore.com, inc." (or
its successor in interest, if any) in the amount of the applicable Exercise
Price, multiplied by the number of Warrant Shares specified in such Exercise
Form, together with applicable transfer taxes, if any.  If this Warrant should
be exercised in part only, the Company or its agent shall, upon surrender of
this Warrant, execute and deliver a Warrant evidencing the right of the Holder
thereof to purchase the balance of the Warrant Shares purchasable hereunder.
Upon receipt by the Company during the Exercise Period of this Warrant and such
Exercise Form in proper form for exercise, together with proper payment of the
applicable Exercise Price at its principal office, or by its agent at its
office, the Holder shall be deemed to be the holder of record of the number of
Warrant Shares specified in such Exercise Form; provided, however, that if the
                                                --------  -------
date of such receipt by the Company or its agent is a date on which the stock
transfer books of the Company are closed, such person shall be deemed to have
become the record holder of such Warrant Shares on the next business day on
which the stock transfer books of the Company are open.  Any Warrant issued upon
partial exercise of this Warrant pursuant to this Section 2 shall be dated the
date of this Warrant.

          Section 3.  Reservation of Shares.  The Company agrees that at all
                      ---------------------
times it will keep reserved solely for issuance and delivery pursuant to this
Warrant the number of shares of its Common Stock that are or would be issuable
from time to time upon exercise of this Warrant in full.  All such shares shall
be duly authorized and, when issued upon such exercise, shall be validly issued,
fully paid and nonassessable, free and clear of all liens, security interests,
charges and other encumbrances or

                                       2
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restrictions on sale and free of all preemptive rights. Before taking any action
that would cause an adjustment pursuant to Section 7 hereof reducing the
Exercise Price below the then par value (if any) of the Warrant Shares issuable
upon exercise of this Warrant, the Company will take any corporate action that
may, in the opinion of its counsel, be necessary in order that the Company may
validly and legally issue fully paid and nonassessable Warrant Shares at the
Exercise Price as so adjusted.

          Section 4.  Transfer in Compliance with Applicable Securities Laws.
                      ------------------------------------------------------
Neither this Warrant nor any of the Warrant Shares, nor any interest in either,
may be sold, assigned, pledged, hypothecated, encumbered or in any other manner
transferred or disposed of, in whole or in part, except in accordance with
applicable United States federal and state securities laws and the terms and
conditions hereof.  The Company may require the Holder to obtain an opinion of
counsel, at the expense of the Holder, reasonably satisfactory to the Company,
that the proposed sale, offer for sale, pledge, hypothecation or other transfer
or disposition may be effected without registration under the Act or state
securities or Blue Sky laws.  No opinion of counsel shall be necessary for a
transfer by the Holder to one or more Affiliates (as such term is defined in
Section 11(f) of the Warrant). Each Warrant shall bear a legend in substantially
                              =
the same form as the legend set forth on the first page of this Warrant. Each
certificate for Warrant Shares issued upon exercise of this Warrant, unless at
the time of exercise such Warrant Shares are registered under the Act, shall
bear a legend substantially in the following form:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR QUALIFIED OR REGISTERED UNDER STATE SECURITIES OR
BLUE SKY LAWS.  THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH
A VIEW TO DISTRIBUTION, AND NEITHER THESE SECURITIES NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR
OTHERWISE TRANSFERRED OR DISPOSED OF EXCEPT IN COMPLIANCE WITH THE SECURITIES
ACT OF 1933, AS AMENDED, APPLICABLE STATE SECURITIES OR BLUE SKY LAWS AND THE
APPLICABLE RULES AND REGULATIONS THEREUNDER.  THE ISSUER OF THESE SECURITIES MAY
REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO
THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE
WITH THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES
LAWS.

          Subject to this Section 4, this Warrant may be transferred and
assigned, in whole or in part, upon surrender of this Warrant to the Company at
its principal office or to the Company's agent at its office, with the Warrant
Assignment Form duly executed and accompanied by funds sufficient to pay any
transfer tax, except that no transfer or assignment of this Warrant may be made
unless (A) the Company consents in writing to such transfer or assignment, which
consent may be withhold in its absolute discretion, and (B) the transferee has
agreed in writing for the benefit of the Company to be bound by the provisions
of this Section 4 to the extent this Section 4 is then applicable.
Notwithstanding the foregoing, the Company agrees that consent will not be
withheld in the case of a transfer or assignment of the Warrant in whole or in
part by the Holder to one or more Affiliates; provided, however, that if the
Warrant is transferred or assigned in part by the Holder to one or more
Affiliates, at least 100,000 Warrant Shares (subject to adjustment pursuant to
Section 7) must underlie each transferred or assigned part of the Warrant.

          The Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees named in such Warrant Assignment Form and, if
the Holder's entire interest is not being transferred or assigned, in the name
of the Holder; and this Warrant shall promptly be cancelled.

                                       3
<PAGE>

          Section 5.  Lost, Mutilated or Missing Warrant.  Upon receipt by the
                      ----------------------------------
Company or its agent of evidence satisfactory to it of the loss, theft or
destruction of this Warrant, and of satisfactory indemnification, and upon
surrender and cancellation of this Warrant if mutilated, the Company or its
agent shall execute and deliver a Warrant of like tenor and date in exchange for
this Warrant.

          Section 6.  Rights of the Holder.  The Holder shall not, by virtue
                      --------------------
hereof, be entitled to any rights of a shareholder in the Company, either at law
or in equity, and the rights of the Holder are limited to those expressed in
this Warrant.

          Section 7.  Certain Events.
                      --------------

          (a)  Stock Dividends, Subdivisions, Combinations. If the Company shall
               -------------------------------------------
(A) declare a dividend or distribution on the Common Stock (or other securities
deliverable hereunder) payable in shares of capital stock (whether shares of
Common Stock or capital stock of any other class), (B) subdivide shares of the
Common Stock into a greater number of shares or (C) combine the Common Stock
into a smaller number of shares then, in any such event, the Holder shall be
entitled to receive the aggregate number and kind of shares which, if the
Warrant had been exercised immediately prior to the record date for such action,
he would have been entitled to receive by virtue of such dividend, distribution,
subdivision or combination, and the Exercise Price shall be appropriately
adjusted.  Such adjustment shall be made successively whenever any event listed
above shall occur.

          (b)  Reorganization Event.  In case of any Reorganization Event the
               --------------------
Company shall, as a condition precedent to the consummation of the transaction
constituting, or announced as, such Reorganization Event, cause effective
provisions to be made so that the Holder shall have the right immediately
thereafter, by exercising this Warrant, to receive the aggregate amount and kind
of shares of stock and other securities and property that were receivable upon
such Reorganization Event by a holder of the number of shares of Common Stock
that would have been received immediately prior to such Reorganization Event
upon exercise of this Warrant.  Any such provision shall include provision for
adjustments in respect of such shares of stock and other securities and property
that shall be as nearly equivalent as may be practicable to the adjustments
provided for in Section 7(a).  The foregoing provisions of this Section 7(b)
shall similarly apply to successive Reorganization Events.

          (c)  Certain Events.  If any event occurs of the type contemplated by
               --------------
the provisions of this Section 7 but not expressly provided for by such
provisions  (including, without limitation, the granting of stock appreciation
rights, phantom stock rights or other rights with equity features), then the
Company's Board of Directors in its reasonable judgment shall make an
appropriate adjustment in the number of Warrant Shares obtainable upon exercise
of this Warrant so as to protect the rights of the Holders of the Warrant.

          (d)  Fractional Shares. No fractional shares of Common Stock (or other
               -----------------
securities deliverable hereunder) or scrip shall be issued to any Holder in
connection with the exercise of this Warrant.  Instead of any fractional share
of Common Stock (or other securities deliverable hereunder) that would otherwise
be issuable to such Holder, the Company shall pay to such Holder a cash
adjustment in respect of such fractional interest in an amount equal to such
fractional interest multiplied by the Exercise Price on the date of such
exercise.

          (e)  Carryover. Notwithstanding any other provision of this Section 7,
               ---------
no adjustment shall be made to the number of shares of Common Stock (or other
securities deliverable hereunder) to be delivered to each Holder (or
corresponding change to the Exercise Price) if such adjustment would represent
less than one percent of the number of shares to be so delivered, but any such
adjustment shall be carried forward and shall be made at the time and together
with the next subsequent adjustment which,

                                       4
<PAGE>

together with any adjustments so carried forward, shall amount to one percent or
more of the number of shares to be so delivered.

          (f)  Notices of Certain Events.  If at any time after the date hereof
               -------------------------
and before the expiration of the Exercise Period:

               (i)    the Company declares any dividend or distribution on its
               Common Stock payable in shares of its capital stock or otherwise
               subdivides or combines the Common Stock;

               (ii)   there shall be any Reorganization Event;

               (iii)  there shall be any voluntary or involuntary dissolution,
               liquidation or winding-up of the Company; or

               (iv)   there shall be any other event that would result in an
               adjustment pursuant to this Section 7 in the Exercise Price or
               the number of Warrant Shares that may be purchased upon the
               exercise hereof;

the Company will cause to be mailed to the Holder, at least twenty days before
the applicable record or effective date, as applicable, for the action
hereinafter specified, a notice stating (A) the date as of which the holders of
Common Stock of record entitled to receive any such dividends or distributions
is to be determined, or (B) the date on which any such subdivision, combination,
Reorganization Event, dissolution, liquidation or winding-up is expected to
become effective, and the date as of which it is expected that holders of Common
Stock of record will be entitled to exchange their shares of Common Stock for
securities or other property, if any, deliverable upon such Reorganization
Event, dissolution, liquidation or winding-up.

          (g)  Failure to Give Notice.  The failure to give the notice required
               ----------------------
by Section 7(f) hereof or any defect therein shall not affect the legality or
validity of any dividend or distribution, subdivision, combination,
Reorganization Event, dissolution, liquidation or winding-up or the vote upon
any such action.

          Section 8.  Officers' Certificate.  Whenever the number of Warrant
                      ---------------------
Shares that may be purchased on exercise of this Warrant or the Exercise Price
is adjusted as required by the provisions of Section 7 hereof, the Company will
forthwith file in the custody of its Secretary or an Assistant Secretary at its
principal office and at the office of its agent an officers' certificate showing
the adjusted number of Warrant Shares that may be purchased at the Exercise
Price on exercise of this Warrant and the adjusted Exercise Price determined as
herein provided, setting forth in reasonable detail the facts requiring such
adjustment and the manner of computing such adjustment.  Each such officers'
certificate shall be signed by the Chief Executive Officer, President or Chief
Financial Officer of the Company.  Each such officers' certificate shall be made
available at all reasonable times for inspection by the Holder.  The Company
shall, promptly after each such adjustment, cause such certificate to be mailed
to the Holder.

          Section 9.  Warrant Register.  The Company will register this
                      ----------------
Warrant in the  Warrant Register in the name of the record holder to whom it has
been distributed or assigned in accordance with the terms hereof.  The Company
may deem and treat the registered Holder of this Warrant as the absolute owner
hereof (notwithstanding any notation of ownership or other writing hereon made
by anyone) for the purpose of any exercise hereof or any distribution to the
Holder and for all other purposes, and the Company shall not be affected by any
notice to the contrary.

                                       5
<PAGE>

          Section 10.  Representations and Warranties of the Company.  The
                       ---------------------------------------------
Company hereby represents and warrants to the Initial Holder as of the date of
this Agreement as follows:

          (a)  The Company is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware.  The Company has all
requisite corporate power and authority to execute and deliver this Warrant and
to perform its obligations hereunder.

          (b)  This Warrant has been duly authorized, executed and delivered by
the Company, and constitutes its valid and legally binding obligation,
enforceable in accordance with its terms except (i) as limited by any applicable
bankruptcy, insolvency, reorganization, moratorium, and other laws of general
application affecting enforcement of creditors' rights generally, and (ii) as
limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies.

          (c)  The Warrant Shares have been duly authorized and reserved for
issuance in accordance herewith, and, upon issuance in accordance with the terms
hereof, will be validly issued, fully paid and nonassessable, free and clear of
all liens, security interests, charges and other encumbrances or restrictions on
sale and free of all preemptive rights.

          Section 11.  Representations and Warranties of each Holder.  The
                       ---------------------------------------------
Holder hereby represents and warrants that:

          (a)  Purchase Entirely for Own Account.  This Warrant and the right to
               ---------------------------------
acquire the Common Stock issuable upon exercise of the Holder's rights contained
herein will be acquired for investment for the Holder's own account, not as a
nominee or agent, and not with a view to the resale or distribution of any part
thereof, and the Holder has no present intention of selling, granting any
participation in, or otherwise distributing the same.  The Holder does not have
any contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third person, with
respect to this Warrant or any of the shares of Common Stock issuable upon
exercise of the Holder's rights contained herein.

          (b)  Investment Experience.  The Holder (i) possesses sufficient
               ---------------------
knowledge and experience in financial and business matters (including experience
with investments of a similar nature) to be capable of evaluating the merits and
risks of an investment in the Company and (ii) has adequate net worth and means
of providing for its current needs and personal contingencies to sustain a
complete loss of its investment in the Company and has no need for liquidity in
his investment in the Company.

          (c)  Access to Information.  The Holder acknowledges that (i) it has
               ---------------------
been furnished or been afforded access to information describing the Company,
the terms of an investment in the Company, the Company's past, present and
anticipated future activities and any other matters the Holder has deemed
relevant to its decision to make an investment in the Company; (ii) it has been
provided an opportunity to obtain additional information concerning the Company,
the Company's past, present and anticipated future activities and any other
matters the Holder has deemed relevant to its decision to make an investment in
the Company; and (iii) it has been given the opportunity to ask questions of,
and receive answers from the Company concerning the Company, the Company's past,
present and anticipated future activities and any other matters the Holder has
deemed relevant to its decision to make an investment in the Company.

          (d)  Accredited Investor.  The Holder is an "accredited investor", as
               -------------------
that term is defined in Rule 501 of Regulation D as promulgated under the Act.

                                       6
<PAGE>

          (e)  Restricted Securities.  The  Holder understands that this Warrant
               ---------------------
and the shares of Common Stock issuable upon exercise hereof  have not been
registered under the Act nor registered or qualified under state securities laws
(including the securities laws of his, her or its state of residence) by reason
of specific exemptions therefrom, which exemptions depend upon, among other
things, the bona fide nature of Holder's investment intent as expressed herein.
The Holder understands that this Warrant and any shares of Common Stock issued
upon exercise hereof must be held indefinitely unless such securities are
subsequently registered under the Act and all applicable state securities laws
and regulations or an exemption from  such registration or qualification is
available, and that the Company is under no obligation to register or qualify
such securities.

          (f)  Restriction on Sale of Common Stock.  The Holder agrees that the
               -----------------------------------
Holder, together with its Affiliates, will not, in any 90-day period, sell,
contract to sell or otherwise sell, dispose of, loan, pledge or grant any rights
with respect to (or, with respect to any of the foregoing, offer to do so),
except, in any such case, to one or more Affiliates of the Holder, more than
250,000 shares of the Common Stock (subject to adjustment pursuant to Section
7).  "Affiliate" means an entity that directly or indirectly Controls, is
Controlled by or is under common Control with another entity.  "Control" means
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of another entity, whether by contract
or through the ownership of voting securities, including, without limitation,
the ownership of more than 50% of the equity, partnership or similar interest in
such entity.

          Section 12.  Successors.  All of the provisions of this Warrant by
                       ----------
or for the benefit of the Company or the Holder shall bind and inure to the
benefit of their respective successors and assigns.

          Section 13.  Headings.  The headings of sections of this Warrant
                       --------
have been inserted for convenience of reference only, are not to be considered a
part hereof and shall in no way modify or restrict any of the terms or
provisions hereof.

          Section 14.  Amendments.  The terms of this Warrant may be amended,
                       ----------
modified or waived only with the written consent of the Holder and the Company.

          Section 15.  Notices.  Unless otherwise provided in this Warrant,
                       -------
any notice or other communication required or permitted to be made or given to
any party hereto pursuant to this Warrant shall be in writing and shall be
deemed made or given if delivered by hand, on the date of such delivery to such
party or, if mailed, on the fifth day after the date of mailing, if sent to such
party by certified or registered mail, postage prepaid, addressed to it (in the
case of a Holder) at its address in the Warrant Register or (in the case of the
Company) at its address on the signature page hereto, or to such other address
as is designated by written notice, similarly given to each other party hereto.

          Section 16.  Governing Law.  This Warrant shall be governed by and
                       -------------
construed under and in accordance with the laws of the State of Washington
without giving effect thereof to the principles of conflict of laws.

                 [Remainder of page intentionally left blank]

                                       7
<PAGE>

          Section 17.  Counterparts.  This Agreement may be executed in any
number of counterparts, each of which shall be an original, and all of which
together will constitute one instrument.

          IN WITNESS WHEREOF, the Company has duly caused this Warrant to be
signed and attested by its duly authorized officer and to be dated as of June
26, 2000.

                                             drugstore.com, inc.

                                             By: /s/ Mark Silverman
                                                 ___________________

                                             Name:   Mark Silverman
                                                   _________________

                                             Title: Vice President,
                                                    Business Development

                                             13920 SE Eastgate Way
                                             Suite 300
                                             Bellevue, WA 98005
                                             Fax: 425-372-3808
                                             Attn: General Counsel

ACCEPTED AND AGREED:

Tel-Drug, Inc.

By: /s/ Eric Elliott
    __________________
    Title: President

    Tel-Drug, Inc.
    c/o CIGNA HealthCare, A-140
    900 Cottage Grove Road
    Hartford, CT 06512

    Attn: President, Tel-Drug, Inc.

                                       8
<PAGE>

                                 EXERCISE FORM
                                 -------------

1.   The undersigned, _______________, hereby irrevocably elects to purchase
     _____ shares of Common Stock pursuant to the terms of the attached Warrant
     and hereby makes payment of $__________ in payment of the purchase price of
     such shares in full, together with all applicable transfer taxes, if any.

2.   Please issue a certificate or certificates representing said shares of
     Common Stock in the name of the undersigned.

3.   The undersigned represents it is acquiring the shares of Common Stock
     solely for its own account and not as a nominee for any other party and not
     with a view toward the resale or distribution thereof and that such
     acquisition is in compliance with Section 4 and Section 5 of the Warrant.
     The undersigned further confirms and acknowledges the investment
     representations and warranties previously made to the Company in Section 11
     of the Warrant with respect to the shares being acquired upon exercise
     hereof.

Date:  __________, ___                  ________________________
                                             [Signed]

                                             _______________________
                                             [Print Name of Holder]

                                             _______________________
                                             [Street Address]

                                             _______________________
                                             [City and State]

                                       9
<PAGE>

                            WARRANT ASSIGNMENT FORM
                            -----------------------

          FOR VALUE RECEIVED, the undersigned, _______________ ("Assignor"),
hereby sells, assigns and transfers unto

Name:___________("Assignee")
       (Please type or print in block letters.)

Address: ___________________________________
         ___________________________________

This Warrant and all rights evidenced thereby and does hereby irrevocably
constitute and appoint the Company and any of its officers, secretary, or
assistant secretaries, as attorneys-in-fact to transfer the same on the books of
the Company, with full power of substitution in the premises.

Date:________, _____                    _________________________
                                             Name of Holder:
                                             Title:

In the presence of :_____________________

Note:   The signature of this Warrant Assignment must correspond to the name as
it appears on the face of this Warrant.  Officers of corporations and those
acting in a fiduciary or other representative capacity should file proper
evidence of authority to assign the foregoing Warrant.

                                       10<PAGE>

                                                                    EXHIBIT 10.1

                              DRUGSTORE.COM, INC.
                              -------------------

                            STOCK PURCHASE AGREEMENT
                            ------------------------

     This Stock Purchase Agreement (this "Agreement") is made as of July 30,
                                          ---------
2000 by and among drugstore.com, inc., a Delaware corporation (the "Company"),
and the investors listed on Schedule I attached hereto (each a "Purchaser" and
                                                                ---------
together the "Purchasers").
              ----------

     The parties hereby agree as follows:

     1.      Purchase and Sale of Common Stock.
             ---------------------------------

             1.1  Sale and Issuance of Common Stock.
                  ---------------------------------

             1.2  Subject to the terms and conditions of this Agreement, each of
the Purchasers agrees to purchase and the Company agrees to sell and issue to
such Purchaser that number of shares of Common Stock, par value $0.0001, of the
Company (the "Common Stock"), determined by dividing the Purchase Commitment
              ------------
listed opposite such Purchaser's name on Schedule I by $4.9375. The Company
shall have the right to amend Schedule I hereto to add additional Purchasers at
any time prior to the Closing, and any such Purchasers shall become parties to
this Agreement. The shares of Common Stock issued to the Purchasers pursuant to
this Agreement are hereinafter referred to as the "Stock."
                                                   ----

                  (a) The Common Stock shall have the rights and restrictions as
set forth in the Amended and Restated Certificate of Incorporation of
drugstore.com, inc. (the "Restated Certificate") attached hereto as Exhibit A.
                          --------------------                      ---------

                  (b) The parties hereto acknowledge that, concurrently
herewith, the Company is entering into a Series 1 Preferred Stock Purchase
Agreement with the several purchasers listed on Schedule I thereto (the
"Preferred Stock Purchase Agreement"), pursuant to which such purchasers have
 ----------------------------------
agreed to purchase, subject to the terms and conditions of the Preferred Stock
Purchase Agreement, at least 45,939 shares of Series 1 Preferred Stock, par
value $0.0001 per share, of the Company (the "Series 1 Preferred Stock"), having
                                              ------------------------
the rights, privileges, preferences and restrictions set forth in the
Certificate of Designations of the Series 1 Preferred Stock attached hereto as
Exhibit B (the "Certificate of Designations.") Upon the receipt of the approval
---------       ---------------------------
of the stockholders of the Company, the shares of Series 1 Preferred Stock shall
be converted into shares of Common Stock.

             1.3  Closing; Delivery.
                  -----------------

                  (a) The purchase and sale of the Stock shall take place at the
offices of Simpson Thacher & Bartlett (or such other location mutually agreeable
to the parties hereto) no later than 5 business days after the satisfaction or
(subject to applicable law) waiver of the
<PAGE>

conditions set forth in Sections 4 and 5 (excluding conditions that, by their
terms, cannot be satisfied until the Closing) (which time and place are
designated as the "Closing").
                   -------

                (b) At the Closing, the Company shall deliver to each Purchaser
a certificate or certificates for the number of shares of the Stock to be
purchased by such Purchaser pursuant to this Agreement against delivery of the
consideration therefor, by wire transfer of immediately available funds to the
Company's bank account.

    2.      Representations and Warranties of the Company.  The Company hereby
            ---------------------------------------------
represents and warrants to each Purchaser that:

            2.1 Good Standing. Each of Company and its Subsidiaries (i) is a
                -------------
a corporation duly organized, validly existing and in good standing under the
laws of its state of incorporation; (ii) has the power and authority to own,
lease and operate its properties and carry on its business as now conducted; and
(iii) is duly qualified, licensed to do business and in good standing as a
foreign corporation in each jurisdiction where the failure to be so qualified
could reasonably be expected to have a material adverse effect on the business,
assets, operations or financial condition of the Company ("Material Adverse
                                                           ----------------
Effect")
------

            2.2 Capitalization.
                --------------

                (a) The authorized capital of the Company consists of
250,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock,
$0.0001 per share (the "Preferred Stock"). The Common Stock has the rights,
                        ---------------
preferences and privileges set forth in the Company's Restated Certificate, and
the Preferred Stock has the rights, preferences and privileges set forth in the
Certificate of Designations.

                (b) As of the date of this Agreement, 52,962,714 shares of
Common Stock and no shares of Preferred Stock are issued and outstanding. All of
the outstanding shares of Common Stock have been, and when issued and paid for
in accordance with the terms of this Agreement the Stock will be, validly
issued, duly authorized, fully paid and nonassessable, and issued in compliance
with all applicable federal and state securities laws (in the case of the
issuance of the Stock, based in part upon the representations of the Purchasers
in Sections 3.4, 3.5, 3.6, 3.7 and 3.8). All of the shares of Series 1 Preferred
Stock, when issued and paid for in accordance with the terms of the Preferred
Stock Purchase Agreement, will be validly issued, duly authorized, fully paid
and nonassessable, and issued in compliance with all applicable federal and
state securities laws (based in part upon the representations of the purchasers
thereof contained in the Preferred Stock Purchase Agreement).

                (c) As of the date of this Agreement (i) 17,509,148 shares of
Common Stock are reserved for issuance under the Company's 1998 Stock Plan (of
which 8,000 shares have been issued pursuant to restricted stock agreements,
890,839 shares are issuable under outstanding options that are currently
exercisable, 10,367,423 shares are issuable under other outstanding options that
are not currently exercisable and 6,250,886 shares remain available for future
grants), (ii) 32,404 shares of Common Stock are reserved for issuance under the
Company's Beauty.com Inc. Stock Plan (of which 9,606 shares are issuable under
outstanding options, all of which are currently exercisable and 22,798 remain
available for

                                                                               2
<PAGE>

future grants) and (iii) 1,000,000 shares of Common Stock are reserved for
issuance under the Company's 1999 Employee Stock Purchase Plan (of which 87,719
have been issued to date).

             (d) Except for the conversion privileges of the Series 1 Preferred
Stock and except as set forth in (i) the warrant to purchase 500,000 shares of
Common Stock issued on June 26, 2000 to Tel-Drug, Inc. (the "Tel-Drug Warrant")
                                                             ----------------
and (ii) the warrant to purchase 2,500,000 shares of Common Stock issued on July
30, 2000 to Amazon.com, Inc. (the "Amazon Warrant"), as of the date of this
                                   --------------
Agreement there are no outstanding options, warrants, rights (including
conversion or preemptive rights and rights of first refusal or similar rights)
or agreements, oral or in writing, for the purchase or acquisition from the
Company of any shares of its capital stock.

             (e) The Stock shall constitute 14.25% of the Common Stock
outstanding as of the date of this Agreement, assuming (i) all warrants for
Common Stock outstanding as of the date of this Agreement have been exercised
for Common Stock, (ii) all options to purchase Common Stock outstanding as of
the date of this Agreement that are exercisable as of the date of this Agreement
have been exercised for Common Stock and (iii) all other rights outstanding as
of the date of this Agreement to acquire Common Stock or securities convertible
into Common Stock have been exercised for or converted into Common Stock. The
Company's only subsidiaries are DS Pharmacy, Inc., DS Non-Pharmaceutical Sales,
Inc., DS Distribution, Inc., DSGC Idaho, Inc., Beauty.com, Inc. and Beauty.com
Sales, Inc. (each a "Subsidiary" and together, the "Subsidiaries").
                     ----------                     ------------

       2.3   Authorization. All corporate action on the part of the Company, its
             -------------
officers, directors and stockholders necessary for the authorization, execution
and delivery of this Agreement and the Preferred Stock Purchase Agreement
(collectively, the "Agreements") and the performance of all obligations of the
                    ----------
Company hereunder and thereunder and the authorization, issuance and delivery of
the Stock and the Series 1 Preferred Stock has been taken or will be taken prior
to the Closing (subject, in the case of the conversion of the Series 1 Preferred
Stock into Common Stock, to the receipt of the Stockholder Approval (as defined
herein)), and the Agreements, when executed and delivered by the Company, will
constitute valid and legally binding obligations of the Company, enforceable
against the Company in accordance with their terms except as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance, and other laws of general application affecting enforcement of
creditors' rights generally, as limited by laws relating to the availability of
specific performance, injunctive relief, or other equitable remedies, and except
as may be limited by Section 6.2(c).

       2.4   Valid Issuance of Stock.  The Stock that will be issued to the
             -----------------------
Purchaser at Closing will have been duly and validly reserved for issuance and,
when issued and delivered in accordance with the terms hereof, will be duly
authorized, validly issued, fully paid and nonassessable, and free of
restrictions on transfer other than restrictions on transfer under this
Agreement and applicable state and federal securities laws.  Based in part upon
the representations of the Purchasers in this Agreement, the Stock will be
issued in compliance with all applicable federal and state securities laws.  The
Common Stock issuable upon conversion of the Series 1 Preferred Stock has been
duly and validly reserved for issuance, and

                                                                               3
<PAGE>

upon issuance in accordance with the terms of the Certificate of Designations,
will be duly authorized, validly issued, fully paid and nonassessable and free
of restrictions on transfer other than restrictions on transfer under the
Preferred Stock Purchase Agreement and applicable federal and state securities
laws and will be issued in compliance with all applicable federal and state
securities laws.

         2.5   Litigation.  There is no action, suit, proceeding or
               ----------
investigation pending or, to the Company's knowledge, currently threatened
against the Company or any of its subsidiaries that (i) questions the validity
of the Agreements or the right of the Company or any of its subsidiaries, as
applicable, to enter into them, or to consummate the transactions contemplated
hereby or thereby nor is the Company aware that there is any basis for the
foregoing or (ii) if adversely determined, would have a Material Adverse Effect.
Neither the Company nor any of its subsidiaries is a party or subject to the
provisions of any order, writ, injunction, judgment or decree of any court or
government agency or instrumentality that (i) challenges the validity of the
Agreements or the right of the Company or any of its subsidiaries, as
applicable, to enter into this Agreement, or to consummate the transactions
contemplated hereby and thereby or (ii) would have a Material Adverse Effect.

         2.6   Liabilities. The Company and its subsidiaries, on a consolidated
               -----------
basis, have no liabilities and there are no contingent liabilities, required by
generally accepted accounting principles to be disclosed on a balance sheet but
that are not disclosed on the Company's audited balance sheet as of January 2,
2000 and/or on the Company's unaudited balance sheet as of July 2, 2000 except
liabilities that would not have a Material Adverse Effect.  Subsequent to July
2, 2000, the Company and its subsidiaries, on a consolidated basis, have not
incurred any liabilities or any contingent liabilities required by generally
accepted accounting principles to be disclosed on the Company's balance sheet
except liabilities that would not have a Material Adverse Effect.

         2.7   Compliance with Other Instruments.  The execution, delivery and
               ---------------------------------
performance of the Agreements and the consummation of the transactions
contemplated hereby and thereby will not result in any violation or be in
conflict with or constitute, with or without the passage of time and giving of
notice, either a default under or cause acceleration under any provision of the
Restated Certificate or the bylaws of the Company or any instrument, judgment,
order, writ, decree or contract to which the Company or any of its Subsidiaries
is a party or by which it is bound, or any provision of any federal or state
statute, rule or regulation applicable to the Company or any of its
Subsidiaries, the effect of which would (i) have a Material Adverse Effect, (ii)
materially and adversely affect the ability of the Company and its Subsidiaries
to perform their respective obligations under the Agreements or (iii) result in
the creation of any material lien, charge or encumbrance upon any assets of the
Company or any of its Subsidiaries.

         2.8   Material Agreements.  The Company has filed with the SEC all
               -------------------
agreements in existence as of the date of this Agreement that (a) define or
affect the rights of security holders of the Company in their capacity as
security holders including, but not limited to, such security holders' voting
rights, registration rights or standstill rights or obligations, other than (i)
the Agreement dated June 23, 2000 between the Company and WellPoint Health

                                                                               4
<PAGE>

Networks Inc., (ii) the Tel-Drug Warrant and (iii) the Amazon Warrant or (b) are
required to be filed under Item 601 of Regulation S-K.

          2.9.   Financial Statements.  The financial statements of Company that
                 --------------------
have been delivered to the Investors (including those for the period ended July
2, 2000), (i) are in accordance with the books and records of Company and its
Subsidiaries, which have been maintained in accordance with good business
practice; (ii) have been prepared in conformity with GAAP (except as discussed
therein, the absence of footnotes for all unaudited periods and, in the case of
audited financial statements, as approved by the relevant firm of accountants);
and (iii) fairly present the consolidated financial position of Company as of
the dates presented therein and the results of operations, changes in financial
positions or cash flows, as the case may be, for the periods presented therein
(except, in the case of financial statements for the period ended July 2, 2000,
for normal year-end audit adjustments). None of the Company or any of the
Company's Subsidiaries has any contingent obligations, liability for taxes or
other outstanding obligations that are material in the aggregate, except as
disclosed in the unaudited financial statements for the period ended July 2,
2000 (except for normal year-end audit adjustments). None of the Company or its
Subsidiaries has any contingent obligations or liability for taxes that are
material in the aggregate and that would be required to be reflected or reserved
against in the latest balance sheet of the Company, except as disclosed in the
unaudited financial statements for the period ended July 2, 2000 (except for
normal year-end audit adjustments).

          2.10.  Investment Company.  None of Company or its Subsidiaries is
                 ------------------
subject to regulation under the Investment Company Act of 1940, or to any
federal or state statute or regulation limiting its ability to incur
indebtedness.

          2.11.  SEC Reporting; Information Provided.  As of the date each was
                 -----------------------------------
filed, none of the Company's registration statements, reports or other filings
made with the Securities and Exchange Commission, contained any untrue statement
of a material fact or omitted to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. Neither this agreement nor any document, certificate or
instrument furnished to any of the Purchasers by or on behalf of the Company
when taken in conjunction with any supplemental or revised information furnished
to any of the Purchasers in writing prior to the date hereof contains any untrue
statement of a material fact or omits, or will omit, to state a material fact
necessary to make the statements in such documents, certificates, instruments or
other information provided, in light of the circumstances in which they were
made, not misleading, except that with respect to any projected financial
information, the Company only represents that it was prepared in good faith and
the Company reasonably believes that the assumptions made in preparing such
projections were reasonable as of the date of such projections.

          2.12.  Absence of Certain Changes.  Since July 2, 2000, no event has
                 --------------------------
occurred and no condition exists which would have a Material Adverse Effect,
other than (i) any change in the price of the Common Stock or (ii) changes in
general economic conditions or conditions affecting the Company's industry
generally.

                                                                               5
<PAGE>

          2.13.  Real Property Holding Company.   The Company is not, and has
                 -----------------------------
not been, a "United States real property holding corporation" within the meaning
of Section 897(c)(2) of the Internal Revenue Code of 1986, as amended (the
"Code"), during the applicable period described in Section 897(c)(1)(A)(ii) of
 ----
the Code.

          2.14   Form S-3 Eligibility.  The Company and the transactions
                 ---------------------
contemplated by Section 6.2 of this Agreement meet the requirements for using
Form S-3 under the Securities Act for resale.

     3.   Representations and Warranties of the Purchasers.  Each Purchaser
          ------------------------------------------------
hereby represents and warrants to the Company with respect to itself that:

          3.1    Authorization.  Such Purchaser has full power and authority to
                 -------------
enter into and deliver this Agreement, and this Agreement, when executed and
delivered by the Purchaser, will constitute a valid and legally binding
obligation of the Purchaser, enforceable against the Purchaser in accordance
with its terms except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, and other laws of general
application affecting enforcement of creditors' rights generally, as limited by
laws relating to the availability of specific performance, injunctive relief, or
other equitable remedies, and except as may be limited by Section 6.2(c)..

          3.2    Litigation.  There is no action, suit, proceeding or
                 ----------
investigation pending or, to the Purchaser's knowledge, currently threatened
against the Purchaser or any of its subsidiaries that questions the validity of
this Agreement or the right of the Purchaser or any of its subsidiaries, as
applicable, to enter into this Agreement, or to consummate the transactions
contemplated hereby nor is the Purchaser aware that there is any basis for the
foregoing. Neither the Purchaser nor any of its subsidiaries is a party or
subject to the provisions of any order, writ, injunction, judgment or decree of
any court or government agency or instrumentality that challenges the validity
of this Agreement or the right of the Purchaser or any of its subsidiaries, as
applicable, to enter into this Agreement, or to consummate the transactions
contemplated hereby.

          3.3    Compliance with Other Instruments. The execution, delivery and
                 ---------------------------------
performance of this Agreement and the consummation of the transactions
contemplated hereby will not result in any violation or be in conflict with or
constitute, with or without the passage of time and giving of notice, either a
default under any provision of the governing documents of the Purchaser or any
instrument, judgment, order, writ, decree or contract to which the Purchaser or
any of its subsidiaries is a party or by which it is bound, or any provision of
any federal or state statute, rule or regulation applicable to the Purchaser or
any of its subsidiaries, the effect of which would have a material adverse
effect on the ability of the Purchaser and its subsidiaries to perform their
respective obligations under this Agreement or result in the creation of any
lien, charge or encumbrance upon any assets of the Purchaser or any of its
subsidiaries.

          3.4    Purchase Entirely for Own Account. This Agreement is made with
                 ---------------------------------
the Purchaser in reliance upon the Purchaser's representation to the Company,
which by

                                                                               6
<PAGE>

the Purchaser's execution of this Agreement, the Purchaser hereby confirms, that
the Stock to be acquired by the Purchaser will be acquired for investment for
the Purchaser's own account, not as a nominee or agent, and not with a view to
the resale or public distribution of any part thereof in violation of any
requirements of the Securities Act of 1933, as amended (the Securities Act") or
                                                            --------------
applicable state securities laws. The Purchaser has no present intention of
selling, granting any participation in, or otherwise distributing any Stock
purchased hereunder, including, without limitation, entering into any
arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of the Stock, whether any such transaction is to be
settled by delivery of Common Stock or other securities, in cash or otherwise.
By executing this Agreement, the Purchaser further represents that the Purchaser
does not presently have any contract, undertaking, agreement or arrangement with
any person to sell, transfer or grant participation to such person or to any
third person, with respect to any of the Stock.

         3.5   Disclosure of Information.  The Purchaser (i) has had an
               -------------------------
opportunity to discuss the Company's business, management, financial affairs and
the terms and conditions of the offering of the Stock with the Company's
management and (ii) has had an opportunity to review the Company's facilities.
The Purchaser understands that such discussions and reviews, as well as any
written information delivered by the Company to the Purchaser, were intended to
describe the aspects of the Company's business that it believes to be material.

         3.6   Restricted Securities.  The Purchaser understands that the Stock
               ---------------------
has not been, and will not be, registered under the Securities Act, by reason of
a specific exemption from the registration provisions of the Securities Act that
depends upon, among other things, the bona fide nature of the investment intent
and the accuracy of the Purchaser's representations as expressed herein. The
Purchaser understands that the shares of Stock are "restricted securities" under
applicable U.S. federal and state securities laws and that, pursuant to these
laws, the Purchaser must hold the shares of Stock indefinitely unless they are
registered with the Securities and Exchange Commission and qualified by state
authorities, or an exemption from such registration and qualification
requirements is available. The Purchaser acknowledges that the Company has no
obligation to register or qualify the Stock for resale except as set forth in
Section 6.2 hereof. The Purchaser further acknowledges that if an exemption from
registration or qualification is available, it may be conditioned on various
requirements including, but not limited to, the time and manner of sale, the
holding period for the Stock, and on requirements relating to the Company that
are outside of the Purchaser's control, and that the Company is under no
obligation, and may not be able, to satisfy.

         3.7   Legends.  The Purchaser understands that the Stock, and any
               -------
securities issued in respect thereof, may bear one or all of the following
legends:

               (a) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A
FORM

                                                                               7
<PAGE>

SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT OF 1933."

                (b) Any legend required by the "Blue Sky" laws of any state to
the extent such laws are applicable to the shares represented by the certificate
so legended.

         3.8    Accredited Investor.  The Purchaser is an accredited investor as
                -------------------
defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

  4.     Conditions of the Purchasers' Obligations at Closing.  The obligations
         ----------------------------------------------------
of the Purchasers to the Company under this Agreement are subject to the
fulfillment, on or before the Closing, of each of the following conditions,
unless otherwise waived by each Purchaser:

         4.1    Representations and Warranties.  The representations and
                ------------------------------
warranties of the Company shall be true and correct on and as of the date of the
Closing with the same effect as though such representations and warranties had
been made on and as of the date of the Closing (except with respect to the
representations and warranties contained in Section 2.2(b), 2.2(c) and the first
sentence of Section 2.2(e), which shall be true and correct in all material
respects as of the date of the Closing).

         4.2    Performance.  The Company shall have performed and complied with
                -----------
all covenants, agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on or before
the Closing and the Company shall have obtained any and all consents, permits
and waivers necessary or appropriate for consummation of the transactions
contemplated by the Agreements.

         4.3    Reservation of Shares.  The Stock issuable pursuant to this
                ---------------------
Agreement shall have been duly authorized and reserved for issuance at the
Closing.

         4.4    Compliance Certificate.  The President of the Company shall
                ----------------------
deliver to the Purchasers at the Closing a certificate certifying that the
conditions specified in Sections 4.1, 4.2 and 4.3 have been fulfilled.

         4.5    Qualifications. All authorizations, approvals or permits, if
                --------------
any, of any governmental authority or regulatory body of the United States or of
any state that are required in connection with the lawful issuance and sale of
the Stock pursuant to this Agreement shall be obtained and effective as of the
Closing including, without limitation, the expiration or termination of all
waiting periods under the Hart-Scott-Rodino Antitrust Improvement Act of 1976,
as amended (the "HSR Act").
                 -------

         4.6    Opinion of Company Counsel.  The Purchasers at the Closing shall
                --------------------------
have received from Simpson Thacher & Bartlett, counsel for the Company, an
opinion dated as of the Closing covering the matters set forth on Exhibit C.
                                                                  ---------

         4.7    Preferred Stock Purchase Agreement.  The Company and the
                ----------------------------------
purchasers parties thereto shall have executed and delivered the Preferred Stock
Purchase Agreement covering the purchase of at least 45,939 shares of Series 1
Preferred Stock.

                                                                               8
<PAGE>

         4.8   Delivery of Lockup Agreements. Each person listed on Exhibit D
               -----------------------------                        ---------
hereto shall have executed and delivered to the Company a lockup agreement in
the form attached hereto as Exhibit F (each, a "Lockup Agreement.")
                            ---------           ----------------

         4.9   Delivery of Voting Agreements.  Each person listed on Exhibit E
               -----------------------------                         ---------
hereto shall have executed and delivered to the Purchasers a voting agreement in
the form attached hereto an Exhibit G (each, a "Voting Agreement") to the effect
                            ---------           ----------------
that such person will vote its shares of Common Stock at the Stockholder Meeting
(as defined) in favor of the approval of the issuance of the Common Stock
issuable upon conversion of the Series A Preferred Stock.  The persons
delivering Voting Agreements shall represent a majority of the Common Stock.

         4.10. Minimum Investment at Closing.  At the Closing, Purchasers
               -----------------------------
investing at least $62,682,825 in the aggregate in the Company under the
Agreements shall have wired their respective investments in the Company into an
escrow account maintained by Brobeck, Phleger & Harrison or an escrow agent
mutually agreeable to the Company and purchasers of a majority of the Stock for
delivery to the Company (or with respect to amounts to be wired by Hearst
Communications Corp., as may be mutually agreed between Hearst Communications
Corp. and the Purchasers), before any Purchaser is obligated to close.

         4.11  Opinion of General Counsel to the Company.   The Purchasers at
               -----------------------------------------
the Closing shall have received from the General Counsel of the Company an
opinion dated as of the Closing covering the matters set forth on Exhibit H.
                                                                  ---------

     5.  Conditions of the Company's Obligations at Closing.  The obligations
         --------------------------------------------------
of the Company to the Purchasers under this Agreement are subject to the
fulfillment, on or before the Closing, of each of the following conditions,
unless otherwise waived:

         5.1   Representations and Warranties.  The representations and
               ------------------------------
warranties of the Purchasers contained in Section 3 shall be true and correct in
all material respects on and as of the date of the Closing with the same effect
as though such representations and warranties had been made on and as of the
date of the Closing (except to the extent such representations and warranties
speak as of the date of this Agreement, in which case they shall be true and
correct in all material respects on and as of the date of this Agreement).

         5.2   Performance. All covenants, agreements and conditions contained
               -----------
in this Agreement to be performed by the Purchasers on or prior to the Closing
shall have been performed or complied with in all material respects.

         5.3   Compliance Certificate. A senior executive officer of each of the
               ----------------------
Purchasers shall deliver to the Company at the Closing a certificate certifying
that the conditions specified in Sections 5.1 and 5.2 have been fulfilled.

         5.4   Qualifications. All authorizations, approvals or permits, if any,
               --------------
of any governmental authority or regulatory body of the United States or of any
state that are required in connection with the lawful issuance and sale of the
Stock pursuant to this Agreement shall be obtained and effective as of the
Closing including, without limitation, the expiration or termination of all
waiting periods under the HSR Act.

                                                                               9
<PAGE>

         5.5  Preferred Stock Purchase Agreement. The Company and the purchasers
              ----------------------------------
parties thereto shall have executed and delivered the Preferred Stock Purchase
Agreement covering the purchase of at least 45,939 shares of Series 1 Preferred
Stock.

         5.6  Delivery of Lockup Agreements. Each person listed on Exhibit D
              -----------------------------
hereto shall have executed and delivered to the Company a Lockup Agreement.

         5.7  Delivery of Voting Agreements. Each person listed on Exhibit D
              ----------------------------
hereto shall have executed and delivered to the Purchasers a Voting Agreement.
The persons delivering Voting Agreements shall represent a majority of the
Common Stock.

      6. Covenants.
         ---------

         6.1  HSR Act Filings. As soon as practicable after the execution of
              ---------------
this Agreement, the Company and each relevant Purchaser will separately file
with the Antitrust Division of the United States Department of Justice and the
United States Federal Trade Commission pursuant to the HSR Act all requisite
documents and notifications in order to provide for the issuance and sale of the
Stock pursuant to this Agreement. The parties will cooperate and coordinate with
one another in exchanging information and providing reasonable assistance as the
other party may request in connection with the foregoing.

         6.2  Registration Rights. (a) The Company hereby agrees: (i) to use its
              -------------------
best efforts to file a resale shelf registration statement (the "Registration
                                                                 ------------
Statement") under the Securities Act as soon as reasonably practicable covering
---------
resales of the Stock by the Purchasers and resales of the Common Stock issuable
upon conversion of the Series 1 Preferred Stock pursuant to the Preferred Stock
Purchase Agreement, (ii) to use its best efforts to cause the Registration
Statement to be declared effective as soon as reasonably practicable but in any
event within 60 days of the Closing and (iii) to maintain the effectiveness of
the Registration Statement until the earlier of (x) the eighteen month
anniversary of the effective date of the Registration Statement and (y) the date
on which all shares of Stock have been resold by the Purchasers. At any time
when the Registration Statement is effective, the Board of Directors of the
Company may determine, as indicated in a certificate signed by any Director of
the Company, the Chief Financial Officer of the Company or the Secretary of the
Company, to suspend offers and sales by Purchasers under the Registration
Statement if an event has occurred or is reasonably likely to occur that would
require additional disclosure by the Company and that the Company has a bona
fide business purpose for keeping confidential, and the nondisclosure of which
would reasonably be expected to cause the Registration Statement to fail to
comply with applicable disclosure requirements. The Company shall give the
Purchasers written notice of the Board of Directors' determination and the
Purchasers agree to suspend offers and sales under the Registration Statement
until the Company has delivered a subsequent notice to the Purchasers revoking
its prior notice; provided, however, that the eighteen month period during which
                  --------  -------
the Registration Statement is required to be effective shall be extended by the
number of days of such suspensions. The Company may not revoke the ability of
Purchasers to make offers and sales under the Registration Statement more than
three times or for more than 90 days in the aggregate.

     (b) For the period during which the Registration Statement is effective,
the

                                                                              10
<PAGE>

Company shall:

             (i)   furnish to the Purchaser with respect to the Stock registered
      under the Registration Statement (and to each underwriter, if any, of such
      Stock) such reasonable number of copies of prospectuses in order to
      facilitate the public sale or other disposition of all or any of the Stock
      by the Purchaser; provided, however, that the obligation of the Company
                        -------- -------
      to deliver copies of prospectuses to the Purchaser shall be subject to the
      receipt by the Company of reasonable assurances from the Purchaser that
      the Purchaser will comply with the applicable provisions of the Securities
      Act and of such other securities or blue sky laws as may be applicable in
      connection with any use of such prospectuses;

             (ii)  during the period when such prospectuses are required to be
      delivered under the Securities Act or the Securities Exchange Act of 1934,
      as amended (the "Exchange Act"), file all documents required to be filed
                       ------------
      with the Commission pursuant to Section 13, 14 or 15 of the Exchange Act
      within the time periods required by the Exchange Act and the rules and
      regulations promulgated thereunder;

             (iii) file documents required of the Company for normal blue sky
      clearance in states specified in writing by the Purchaser; provided,
                                                                 --------
      however, that the Company shall not be required to qualify to do business
      -------
      or consent to service of process in any jurisdiction in which it is not
      now so qualified or has not so consented;

             (iv)  authorize for listing on the Nasdaq National Market the
      shares of Stock by filing with the Nasdaq National Market a Notification
      of Listing of Additional Shares (or such other form, if any, as may be
      required by the Nasdaq National Market) as soon as reasonably practicable
      after the filing of the Registration Statement or otherwise in accordance
      with the rules and regulations of the Nasdaq National Market; and

             (v)   bear all expenses in connection with the procedures in this
      Section 6.2 and the registration of the Stock pursuant to the Registration
      Statement, other than fees and expenses, if any, of counsel or other
      advisers to the Purchaser or underwriting discounts, brokerage fees and
      commissions incurred by the Purchaser, if any.

     (c)     For purposes of this Section 6.2(c), the term "Registration
                                                            ------------
Statement" shall include any preliminary or final prospectus, exhibit,
---------
supplement or amendment included in or relating to the Registration Statement
referred to in Section 6.2(a).

             (i)   The Company agrees to indemnify and hold harmless each of the
      Purchasers and each of their respective directors, officers, members and
      partners, and each person, if any, who controls any Purchaser within the
      meaning of the Securities Act, against any losses, claims, damages,
      liabilities or expenses, joint or several, to which such Purchasers and
      each of their respective directors, officers, members and partners, or
      such controlling person may become subject, under the Securities Act, the
      Exchange Act, or any other federal or state statutory law or regulation,
      or at common law or otherwise (including in settlement of any litigation,
      if such settlement is effected

                                                                              11
<PAGE>

     with the written consent of the Company), insofar as such losses, claims,
     damages, liabilities or expenses (or actions in respect thereof as
     contemplated below) arise out of or are based upon any untrue statement or
     alleged untrue statement of any material fact contained in or incorporated
     by reference in the Registration Statement, including the prospectus,
     financial statements and schedules, and all other documents filed as a part
     thereof, as amended at the time of effectiveness of the Registration
     Statement, including the preliminary or final prospectus any information
     deemed to be a part thereof as of the time of effectiveness pursuant to
     paragraph (b) of Rule 430A, or pursuant to Rule 434, of the rules and
     regulations of the Commission under the Securities Act (the "Regulations"),
                                                                  -----------
     or the prospectus, in the form first filed with the Commission pursuant to
     Rule 424(b) of the Regulations, or filed as part of the Registration
     Statement at the time of effectiveness if no Rule 424(b) filing is required
     (the "Prospectus"), or any amendment or supplement thereto, or arise out of
           ----------
     or are based upon the omission or alleged omission to state in any of them
     a material fact required to be stated therein or necessary to make the
     statements in any of them, in light of the circumstances under which they
     were made, not misleading, or arise out of or are based in whole or in part
     on any failure of the Company to perform its obligations under or a
     violation of the Securities Act, the Exchange Act or any state securities
     law, and will reimburse each Purchaser and each of their respective
     directors, officers, members and partners, and each such controlling person
     for any legal and other expenses as such expenses are reasonably incurred
     by such Purchaser or such controlling person in connection with
     investigating, defending, settling, compromising or paying any such loss,
     claim, damage, liability, expense or action; provided, however, that the
                                                  --------  -------
     Company will not be liable in any such case to the extent that any such
     loss, claim, damage, liability or expense arises out of or is based upon
     (i) an untrue statement or alleged untrue statement or omission or alleged
     omission made in the Registration Statement, the Prospectus or any
     amendment or supplement thereto in reliance upon and in conformity with
     written information furnished to the Company by or on behalf of the
     Purchaser expressly for use therein, or (ii) the failure of such Purchaser
     to comply with the covenants and agreements contained in this Section 6.2
     respecting the sale of the Stock, or (iii) any statement or omission in any
     Prospectus that is corrected in any subsequent Prospectus that was
     delivered to the Purchaser prior to the pertinent sale or sales by the
     Purchaser.

           (ii) Each Purchaser will severally indemnify and hold harmless the
     Company, each of its directors, each of its officers who signed the
     Registration Statement and each person, if any, who controls the Company
     within the meaning of the Securities Act, against any losses, claims,
     damages, liabilities or expenses to which the Company, each of its
     directors, each of its officers who signed the Registration Statement or
     controlling person may become subject, under the Securities Act, the
     Exchange Act, or any other federal or state statutory law or regulation, or
     at common law or otherwise (including in settlement of any litigation, if
     such settlement is effected with the written consent of such Purchaser)
     insofar as such losses, claims, damages, liabilities or expenses (or
     actions in respect thereof as contemplated below) arise out of or are based
     upon any untrue or alleged untrue statement of any material fact contained
     in the Registration Statement, including the prospectus, financial
     statements and

                                                                              12
<PAGE>

     schedules, and all other documents filed as a part thereof, as amended at
     the time of effectiveness of the Registration Statement, including any
     information deemed to be a part thereof as of the time of effectiveness
     pursuant to paragraph (b) of Rule 430A, or pursuant to Rule 434 of the
     Regulations, or the Prospectus, or any amendment or supplement thereto, or
     arise out of or are based upon the omission or alleged omission to state
     therein a material fact required to be stated therein or necessary to make
     the statements in any of them, in light of the circumstances under which
     they were made, not misleading, or arise out of or are based in whole or in
     part on any failure of such Purchaser to perform its obligations under the
     Securities Act, the Exchange Act or any state securities law, and will
     reimburse the Company, each of its directors, each of its officers who
     signed the Registration Statement and each such controlling person for any
     legal and other expenses as such expenses are reasonably incurred by such
     Purchaser or such controlling person in connection with investigating,
     defending, settling, compromising or paying any such loss, claim, damage,
     liability, expense or action, in each case to the extent, but only to the
     extent, that such untrue statement or alleged untrue statement or omission
     or alleged omission was made in the Registration Statement, the Prospectus,
     or any amendment or supplement thereto, in reliance upon and in conformity
     with written information furnished to the Company by or on behalf of any
     Purchaser expressly for use therein.

          (iii)  Promptly after receipt by an indemnified party under this
     Section 6.2(c) of notice of the threat or commencement of any action, such
     indemnified party will, if a claim in respect thereof is to be made against
     an indemnifying party under this Section 6.2(c) promptly notify the
     indemnifying party in writing thereof; but the omission so to notify the
     indemnifying party will not relieve it from any liability which it may have
     to any indemnified party for contribution or otherwise than under the
     indemnity agreement contained in this Section 6.2(c) or to the extent it is
     not prejudiced as a result of such failure.  In case any such action is
     brought against any indemnified party and such indemnified party seeks or
     intends to seek indemnity from an indemnifying party, the indemnifying
     party will be entitled to participate in, and, to the extent that it may
     wish, jointly with all other indemnifying parties similarly notified, to
     assume the defense thereof with counsel reasonably satisfactory to such
     indemnified party; provided, however, if the defendants in any such action
     include both the indemnified party and the indemnifying party and the
     indemnified party shall have reasonably concluded that there may be a
     conflict between the positions of the indemnifying party and the
     indemnified party in conducting the defense of any such action or that
     there may be legal defenses available to it and/or other indemnified
     parties which are different from or additional to those available to the
     indemnifying party, the indemnified party or parties shall have the right
     to select separate counsel to assume such legal defenses and to otherwise
     participate in the defense of such action on behalf of such indemnified
     party or parties.  Upon receipt of notice from the indemnifying party to
     such indemnified party of its election so to assume the defense of such
     action and approval by the indemnified party of counsel, the indemnifying
     party will not be liable to such indemnified party under this Section
     6.2(c) for any legal or other expenses subsequently incurred by such
     indemnified party in connection with the defense thereof unless (i) the
     indemnified party shall have employed such counsel in connection with the
     assumption

                                                                              13
<PAGE>

     of legal defenses in accordance with the proviso to the preceding sentence
     (it being understood, however, that the indemnifying party shall not be
     liable for the expenses of more than one separate counsel, approved by such
     indemnifying party, representing all of the indemnified parties who are
     parties to such action) or (ii) the indemnifying party shall not have
     employed counsel reasonably satisfactory to the indemnified party to
     represent the indemnified party within a reasonable time after notice of
     commencement of action, in each of which cases the reasonable fees and
     expenses of counsel shall be at the expense of the indemnifying party.

          (iv)  If the indemnification provided for in this Section 6.2 is
     required by its terms but is for any reason held to be unavailable to or
     otherwise insufficient to hold harmless an indemnified party under
     paragraphs (i), (ii) or (iii) of this Section 6.2(c) in respect to any
     losses, claims, damages, liabilities or expenses referred to herein, then
     each applicable indemnifying party shall contribute to the amount paid or
     payable by such indemnified party as a result of any losses, claims,
     damages, liabilities or expenses referred to herein in such proportion as
     is appropriate to reflect the relative fault of the indemnifying party on
     the one hand and the indemnified party on the other in connection with the
     statements or omissions that resulted in such loss, claim, damage,
     liability or expense as well as any other relevant equitable
     considerations.  The relative fault of the Company and such Purchaser shall
     be determined by reference to, among other things, whether the untrue or
     alleged statement of a material fact or the omission or alleged omission to
     state a material fact relates to information supplied by the Company or by
     such Purchaser and the parties' relative intent, knowledge, access to
     information and opportunity to correct or prevent such statement or
     omission.  The amount paid or payable by a party as a result of the losses,
     claims, damages, liabilities and expenses referred to above shall be deemed
     to include, subject to the limitations set forth in paragraph (iii) of this
     Section 6.2(c), any legal or other fees or expenses reasonably incurred by
     such party in connection with investigating or defending any action or
     claim.  The provisions set forth in paragraph (iii) of this Section 6.2(c)
     with respect to the notice of the threat or commencement of any threat or
     action shall apply if a claim for contribution is to be made under this
     paragraph (iv); provided, however, that no additional notice shall be
                     -------- --------
     required with respect to any threat or action for which notice has been
     given under paragraph (iii) for purposes of indemnification.
     Notwithstanding the provisions of this Section 6.2(c)(iv), no Purchaser
     shall be required to contribute any amount in excess of the net proceeds of
     the offering received by such Purchaser, except in the case of willful
     fraud by such Purchaser.  No person guilty of fraudulent misrepresentation
     (within the meaning of Section 11(f) of the Securities Act) shall be
     entitled to contribution from any person who was not guilty of such
     fraudulent misrepresentation.  The Purchasers' obligations to contribute
     pursuant to this Section 6.2(c)(iv) are several and not joint.

          6.3   Stockholder Meeting.  The Company shall cause (i) a special
                -------------------
meeting of its common stockholders (the "Stockholder Meeting") to be held as
                                         -------------------
soon as practicable but in no event later than three months from the Closing,
for the purpose of approving the conversion of the Series 1 Preferred Stock
issued pursuant to the Preferred Stock Purchase Agreement into Common Stock or
(ii) holders of the requisite number of shares of Common

                                                                              14
<PAGE>

Stock to deliver written consents approving the conversion of the Series 1
Preferred Stock issued pursuant to the Preferred Stock Purchase Agreement into
Common Stock (the action called for in (i) and (ii), the "Stockholder
                                                          -----------
Approval").
--------

          6.4  No Waiver of Lockup Agreement.  The Company shall not waive any
               -----------------------------
provision of any Lockup Agreement without having obtained the prior consent of
the holders of at least sixty-seven percent (67%) of the shares of Stock
purchased hereunder; provided, that any Stock purchased hereunder by persons who
                     --------
have signed a Lockup Agreement shall not be deemed to be shares of Stock for
purposes of this Section 6.4; and provided, further, that the Company shall not
                                  --------  -------
in any event waive any provision of any Lockup Agreement with respect to any
person listed on Exhibit D without concurrently waiving the Lockup Agreement
with respect to all persons listed on Exhibit D.

     7.   Miscellaneous.
          -------------

          7.1  Survival of Warranties.  The warranties and representations of
               ----------------------
the Company and the Purchasers contained herein shall terminate on the second
anniversary of the Closing.

          7.2  Transfer; No Third Party Beneficiaries.  This Agreement and each
               --------------------------------------
party's rights and obligations hereunder shall not be assigned without the prior
written consent of the other party; provided, that a Purchaser may transfer its
                                    --------
rights hereunder to an affiliate, so long as such affiliate agrees in writing to
be bound by all obligations under this Agreement.  Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement.

          7.3  Governing Law.  This Agreement and all acts and transactions
               -------------
pursuant hereto and the rights and obligations of the parties hereto shall be
governed by and construed in accordance with the laws of the State of Delaware,
without giving effect to principles of conflicts of laws.

          7.4  Counterparts.  This Agreement may be executed in two or more
               ------------
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

          7.5  Titles and Subtitles.  The titles and subtitles used in this
               --------------------
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

          7.6  Notices.  Any notice required or permitted by this Agreement
               -------
shall be in writing and shall be deemed sufficient upon delivery, when delivered
personally or by overnight courier or sent by telegram or fax, or forty-eight
(48) hours after being deposited in the U.S. mail, as certified or registered
mail, with postage prepaid, addressed to the party to be notified at such
party's address as set forth on the signature page hereto, or as subsequently
modified by written notice, and if to the Company, with copies to the General
Counsel of the Company at the address of the Company set forth below and Simpson
Thacher & Bartlett, 3373

                                                                              15
<PAGE>

Hillview Avenue, Suite 250, Palo Alto, CA 94304, Attention: William H. Hinman,
telecopy no: (650)-251-5002), and if to any of Integral Capital Partners IV,
L.P., Integral Capital Partners IV MS Side Fund, L.P., Integral Capital Partners
V, L.P. and Integral Capital Partners V Side Fund, L.P. with a copy to Brobeck,
Phleger & Harrison, Spear Street Tower, One Market, San Francisco, CA 94105,
Attention: Ronald Moskovitz, telecopy no: (415-442-1010), and if to the Baron
Asset Fund or Baron Capital Funds Trust, with a copy to the Baron Asset Fund,
767 Fifth Avenue, 49/th/ Floor, New York, NY 10153, Attention: Linda S.
Martinson, Esq.

          7.7  Finder's Fee.  Each party represents that it neither is nor will
               ------------
be obligated for any finder's fee or commission in connection with this
transaction.  Each Purchaser agrees to indemnify and to hold harmless the
Company from any liability for any commission or compensation in the nature of a
finder's fee (and the costs and expenses of defending against such liability or
asserted liability) for which such Purchaser or any of its officers, employees,
or representatives is responsible.  The Company agrees to indemnify and hold
harmless each Purchaser from any liability for any commission or compensation in
the nature of a finder's fee (and the costs and expenses of defending against
such liability or asserted liability) for which the Company or any of its
officers, employees or representatives is responsible.

          7.8  Fees and Expenses.  The Company and the Purchasers shall pay
               -----------------
their respective fees and other expenses in connection with the negotiation,
execution, delivery and performance of the Agreements, provided that if the
Closing occurs the Company will pay the reasonable fees and expenses of counsel
for the Purchasers up to $20,000 in the aggregate.

          7.9  Attorney's Fees.  If any action at law or in equity (including
               ---------------
arbitration) is necessary to enforce or interpret the terms of any of the
Agreements, the prevailing party shall be entitled to reasonable attorney's
fees, costs and necessary disbursements in addition to any other relief to which
such party may be entitled.

          7.10 Amendments and Waivers.  Any term of this Agreement may be
               ----------------------
amended or waived only with the written consent of the Company and each of the
Purchasers.  Any amendment or waiver effected in accordance with this Section
7.10 shall be binding upon each Purchaser and each transferee of the Stock, each
future holder of all such Stock, and the Company.

          7.11 Severability.  If one or more provisions of this Agreement are
               ------------
held to be unenforceable under applicable law, the parties agree to renegotiate
such provision in good faith.  In the event that the parties cannot reach a
mutually agreeable and enforceable replacement for such provision, then (a) such
provision shall be excluded from this Agreement, (b) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (c) the
balance of the Agreement shall be enforceable in accordance with its terms.

          7.12 Delays or Omissions.  No delay or omission to exercise any right,
               -------------------
power or remedy accruing to any party under this Agreement, upon any breach or
default of any other party under this Agreement, shall impair any such right,
power or remedy of such non-breaching or non-defaulting party nor shall it be
construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter

                                                                              16
<PAGE>

occurring; nor shall any waiver of any single breach or default be deemed a
waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent or approval of any kind or character on the part of any
party of any breach or default under this Agreement, or any waiver on the part
of any party of any provisions or conditions of this Agreement, must be in
writing and shall be effective only to the extent specifically set forth in such
writing. All remedies, either under this Agreement or by law or otherwise
afforded to any party, shall be cumulative and not alternative.

          7.13 Entire Agreement.  This Agreement, and the documents referred to
               ----------------
herein, constitute the entire agreement between the parties hereto pertaining to
the subject matter hereof, and any and all other written or oral agreements
relating to the subject matter hereof existing between the parties hereto are
expressly canceled.

          7.14 Confidentiality.  Except as provided below, each party hereto
               ---------------
agrees that, except with the prior written permission of the other party, it
shall at all times keep confidential and not divulge, furnish or make accessible
to anyone any confidential information, knowledge or data concerning or relating
to the business or financial affairs of the other party to which such party has
been or shall become privy by reason of the Agreements, discussions or
negotiations relating to the Agreements, the performance of its obligations
thereunder or the ownership of Stock purchased hereunder.  Notwithstanding the
foregoing, nothing herein shall prevent any party from disclosing (i) such
information that has been publicly disclosed, (ii) such information that becomes
available to the party on a non-confidential basis from a source other than the
other party hereto, provided that such source is not bound by a confidentiality
agreement with such other party, (iii) information required to be disclosed
pursuant to subpoena or other court process or otherwise required to be
disclosed by law or the regulations of any securities exchange (provided that,
to the extent practicable, advance notice is given to the party whose
confidential information is to be disclosed so that such party can attempt to
obtain a protective order) and (iv) such information that was known to the party
prior to its first receipt from the other party.  Notwithstanding the foregoing,
the provisions of this Section 7.14 shall not be applicable to any Purchaser
that has executed a separate Non-Disclosure Agreement with the Company (such
agreement, a "Separate Agreement"), in which case the obligations of such
              ------------------
Purchaser shall continue in accordance with the provisions of such Separate
Agreement; provided, that the definition of "Confidential Information" in such
           --------
Separate Agreement shall be deemed to include all non-public information
received by the Purchaser to which such Purchaser shall become privy by reason
of its ownership of Stock purchased hereunder.  In the event of an express
inconsistency between a Separate Agreement and this Agreement, then this
Agreement shall govern.

          7.15 Publicity.  After the execution of this Agreement, any of the
               ---------
parties may issue a press release disclosing that the Purchasers have agreed to
invest in the Company and the terms of the future relationship between the
parties in a form approved by the other party, which approval will not be
unreasonably withheld, conditioned or delayed.  In addition, any party may
disclose such information regarding the Purchasers' investment and the
relationship between the parties as required by law or the regulations of any
securities exchange.

                                                                              17
<PAGE>

        7.16 Termination. This Agreement may be terminated and the transactions
             -----------
contemplated hereby may be abandoned at any time prior to the Closing:

        (i)  at any time by mutual written consent of the Company and each of
      the Purchasers; or

        (ii) by any party hereto if the Closing does not occur on or prior to
      October 31, 2000; (provided, that if on October 31, 2000 any
      authorization, approval or permit of any governmental authority or
      regulatory body of the United States or of any state that is required in
      connection with the lawful issuance and sale of the Stock pursuant to this
      Agreement has not been obtained, then no party shall be entitled to
      terminate this Agreement pursuant to this clause (ii) until December 15,
      2000 and then only if the Closing has not occurred on or prior to such
      date).

     Upon any such termination, this Agreement shall become void and of no
further effect, except for Sections 7.3, 7.7, 7.8, 7.9, 7.14 and this Section
7.16 which shall survive such termination.

                           [Signature Pages Follow]

                                                                              18
<PAGE>

     The parties have executed this Stock Purchase Agreement as of the date
first written above.

                                       COMPANY:

                                       DRUGSTORE.COM, INC.

                                       By:/s/ David Rostov
                                          ______________________________________
                                       Name:  David Rostov
                                       Title: Chief Financial Officer

                                       Address: 13920 SE Eastgate Way, Suite 300
                                                Bellevue, WA  98005

             Signature Page to the Common Stock Purchase Agreement
<PAGE>

                                 PURCHASERS:

                                 Integral Capital Partners IV, L.P.
                                 By: Integral Capital Management IV, LLC, its
                                 General Partner

                                 By:    /s/ Pamela K. Hagenah
                                        _______________________________________
                                 Name:      Pamela K. Hagenah
                                        _______________________________________

                                 Title: Manager
                                        _______________________________________
                                 Address: 2750 Sand Hill Road
                                          _____________________________________
                                          Menlo Park, CA 94025
                                          _____________________________________

                                 Integral Capital Partners IV MS Side Fund, L.P.
                                 By: Integral Capital Partners NBT, LLC, its
                                 General Partner

                                 By:    /s/ Pamela K. Hagenah
                                        _______________________________________
                                 Name:      Pamela K. Hagenah
                                        ______________________________________

                                 Title: Manager
                                        _______________________________________
                                 Address: 2750 Sand Hill Road
                                          _____________________________________
                                          Menlo Park, CA 94025
                                          _____________________________________

                                 Integral Capital Partners V, L.P.
                                 By: Integral Capital Management V, LLC, its
                                 General Partner

                                 By:    /s/ Pamela K. Hagenah
                                        _______________________________________
                                 Name:      Pamela K. Hagenah
                                        ______________________________________

                                 Title: Manager
                                        _______________________________________
                                 Address: 2750 Sand Hill Road
                                          _____________________________________
                                          Menlo Park, CA 94025
                                          _____________________________________

                                 Integral Capital Partners V Side Fund, L.P.
                                 By: ICP Management V, LLC, its General Partner

                                 By:    /s/ Pamela K. Hagenah
                                        _______________________________________
                                 Name:      Pamela K. Hagenah
                                        ______________________________________

                                 Title: Manager
                                        _______________________________________
                                 Address: 2750 Sand Hill Road
                                          _____________________________________
                                          Menlo Park, CA 94025
                                          _____________________________________

              Signature Page to the Common Stock Purchase Agreement

<PAGE>

                                 HEARST COMMUNICATIONS, INC.

                                 By:       /s/ Alfred C. Sikes
                                          -------------------------------------
                                               Alfred C. Sikes, Vice President

                                 Address:  959 Eighth Avenue
                                          -------------------------------------
                                           New York, NY 10019
                                          -------------------------------------

             Signature Page to the Common Stock Purchase Agreement

<PAGE>

                                     BARON ASSET FUND, on behalf of the Baron
                                     iOpportunity Fund series

                                     By:     /s/ Mork Schaja
                                            ------------------------------------
                                     Name:       Mork Schaja
                                            ------------------------------------
                                     Title:      President
                                            ------------------------------------

                                     Address: 767 Fifth Avenue, 49th Floor
                                              New York, NY 10153

                                     BARON ASSET FUND, on behalf of the Baron
                                     Growth Fund series

                                     By:     /s/ Mork Schaja
                                            ------------------------------------
                                     Name:       Mork Schaja
                                            ------------------------------------
                                     Title:      President
                                            ------------------------------------

                                     Address: 767 Fifth Avenue, 49th Floor
                                              New York, NY 10153

                                     BARON CAPITAL FUNDS TRUST, on behalf of the
                                     Baron Capital Asset Fund series

                                     By:     /s/ Linda S. Martinson
                                            ------------------------------------
                                     Name:       Linda S. Martinson
                                            ------------------------------------
                                     Title:      V.P. & General Counsel
                                            ------------------------------------

                                     Address: 767 Fifth Avenue, 49th Floor
                                              New York, NY 10153

             Signature Page to the Common Stock Purchase Agreement

<PAGE>

                  MAVERON EQUITY PARTNERS, L.P., a Delaware Limited Partnership

                                    By:   MAVERON GENERAL PARTNERS LLC,
                                          a Delaware Limited Liability Company

                                          /s/ Dan Levitan
                                          ____________________________________
                                    By:       Dan Levitan

                                    Its:  Manager
                                    Address: 800 Fifth Avenue, Suite 4100,
                                             Seattle, WA 98104

             Signature Page to the Common Stock Purchase Agreement

<PAGE>

                                      AMAZON.COM, INC.

                                      By:    /s/ Mark Britto
                                             ___________________________________
                                      Name:  Mark Britto
                                             ___________________________________
                                      Title: VP
                                             ___________________________________
                                      Address: P.O. Box 81226
                                               _________________________________
                                               Seattle, WA 98108-1226
                                               _________________________________

             Signature Page to the Common Stock Purchase Agreement
<PAGE>

                                  SCHEDULE I

Purchaser                                    Purchase Commitment
---------                                    -------------------

Integral Capital Partners IV, L.P.             $10,620,700.75
Integral Capital Partners IV MS                $    50,165.00
Side Fund, L.P.
Integral Capital Partners V, L.P.              $ 4,278,067.25
Integral Capital Partners V Side               $    51,068.57
Fund, L.P.
Hearst Communications, Inc.                    $    5,000,000
Baron Asset Fund, on behalf of the             $    2,000,000
Baron iOpportunity Fund series
Baron Asset Fund, on behalf of the             $   11,000,000
Baron Growth Fund series
Baron Capital Funds Trust, on                  $    2,000,000
behalf of the Baron Capital Asset
Fund Series
Maveron Equity Partners, L.P.                  $    2,000,000
Amazon.com, Inc.                               $    3,000,000

Total
-----
<PAGE>

                                   EXHIBITS
                                   --------

Exhibit A-Amended and Restated Certificate of Incorporation of the Company
Exhibit B-Certificate of Designation of Series 1 Preferred Stock
Exhibit C-Matters to be covered in legal opinion of Simpson Thacher & Bartlett
Exhibit D-Persons that will deliver Lockup Agreements
Exhibit E-Persons that will deliver Voting Agreements
Exhibit F-Form of Lockup Agreement
Exhibit G-Form of Voting Agreement
Exhibit H-Matters to be covered in opinion of General Counsel to the Company
<PAGE>

                                   EXHIBIT A
                                   ---------

                       AMENDED AND RESTATED CERTIFICATE
                        OF INCORPORATION OF THE COMPANY
<PAGE>

                                   EXHIBIT B
                                   ---------

            CERTIFICATE OF DESIGNATIONS OF SERIES 1 PREFERRED STOCK
<PAGE>

                                   EXHIBIT C
                                   ---------

                  MATTERS TO BE COVERED BY LEGAL OPINION OF
                          SIMPSON THACHER & BARTLETT
<PAGE>

                                   EXHIBIT D
                                   ---------

                    PERSONS THAT WILL SIGN LOCKUP AGREEMENTS

Kleiner Perkins Caufield & Byers VIII, L.P.

KPCB Life Sciences Zaibatsu Fund II, L.P.

KPCB VIII Founders Fund, L.P.

Amazon.com, Inc. (except in respect of 1,066,667 shares of Common Stock)

Maveron Equity Partners, L.P.

Vulcan Ventures Incorporated

Rite Investments Corp.

General Nutrition Investment Company

Peter Neupert

Peter Neupert and Sheryl Neupert, Tenants in Common

Kal Raman

David Rostov (other than in respect of 40,000 shares)

David Rostov, as custodian

Judith H. McGarry (other than in respect of 40,000 shares)

Drugstore.com Foundation

L. John Doerr
<PAGE>

                                   EXHIBIT E
                                   ---------

                    PERSONS THAT WILL SIGN VOTING AGREEMENTS

Kleiner Perkins Caufield & Byers VIII, L.P.

KPCB Life Sciences Zaibatsu Fund II, L.P.

KPCB VIII Founders Fund, L.P.

Amazon.com, Inc.

Maveron Equity Partners, L.P.

Vulcan Ventures Incorporated

Rite Investments Corp.

General Nutrition Investment Company

Peter Neupert

Peter Neupert and Sheryl Neupert, Tenants in Common

Kal Raman

Mark L. Silverman

David Rostov

David Rostov, as custodian

Judith H. McGarry

Drugstore.com Foundation

Hearst Communications, Inc.

Integral Capital Partners IV, L.P.

Integral Capital Partners IV MS Side Fund, L.P.

Integral Capital Partners V, L.P.

Integral Capital Partners V Side Fund, L.P.

Baron Asset Fund
<PAGE>

                             Exhibit E (Continued)
                             ---------------------

Baron Capital Funds Trust

L. John Doerr
<PAGE>

                                   EXHIBIT F
                                   ---------

                           FORM OF LOCKUP AGREEMENT
<PAGE>

                                   EXHIBIT G
                                   ---------

                           FORM OF VOTING AGREEMENT
<PAGE>

                                   EXHIBIT H
                                   ---------

           MATTERS TO BE COVERED BY THE OPINION OF GENERAL COUNSEL
                                TO THE COMPANY

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