Document:

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                                                                     Exhibit 4.1

                             AIRSPAN NETWORKS INC.

                               AND SUBSIDIARIES

                       2000 EMPLOYEE STOCK PURCHASE PLAN

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                             AIRSPAN NETWORKS INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

                     As approved by the Board of Directors
                         on May 17, 2000 and Airspan's
                         Shareholders on May 24, 2000

Airspan Networks Inc. (the "Company") does hereby establish its 2000 Employee
Stock Purchase Plan as follows:

1.   Purpose of the Plan.

     The purpose of this Plan is to provide eligible employees who wish to
     become shareholders in the Company with a convenient method of doing so. It
     is believed that employee participation in the ownership of the business
     will be to the mutual benefit of both the employees and the Company.

2.   Definitions.

     2.1  "Base pay" means regular base salary, excluding bonus or other special
          payments.

     2.2  "Account" shall mean the funds accumulated with respect to an
          individual employee as a result of deductions from their paycheck for
          the purpose of purchasing stock under this Plan. The funds allocated
          to an employee's account shall remain the property of the respective
          employee at all times and will be remitted to a separate deposit
          account within twenty days of the deduction from the paycheck.

3.   Employees Eligible to Participate.

     Any permanent employee of the Company or any of its subsidiaries who is in
     the employ of the Company or subsidiary on an Offering commencement date is
     eligible to participate in that Offering.

4.   Offerings.

     There will be six separate consecutive offerings (each an "Offering")
     pursuant to the Plan. The first Offering shall commence on the date on
     which the Company's registration statement for the registration under the
     Securities Act of 1933, as amended, of shares of the common stock of the
     Company becomes effective (the "IPO Date"), and shall continue through July
     31, 2001. Thereafter, Offerings shall commence on each subsequent August 1
     and shall last for a period of one year, and the final Offering under this
     Plan shall commence on August 1, 2005 and terminate on July 31, 2006. In
     order to become eligible to purchase shares, an employee must sign an
     Enrolment Agreement, and any other necessary papers on or before the
     commencement date (the IPO Date or August 1, as applicable) of the
     particular Offering in which they wish to participate. Participation in one
     Offering under the Plan shall neither limit, nor require, participation in
     any other Offering.

                                       1
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5.   Price.

     5.1  The first Offering

          The purchase price per share shall be the lesser of (1) 85% of the
          initial issue price of the stock at IPO; or (2) 85% of the fair market
          value of the stock on the last business day of the first Offering.
          Fair market value shall mean the closing bid price as reported on the
          National Association of Securities Dealers Automated Quotation System
          or, if the stock is traded on a stock exchange, the closing price for
          the stock on the principal such exchange.

     5.2  Subsequent Offerings

          The purchase price per share shall be the lesser of (1) 85% of the
          fair market value of the stock on the Offering date; or (2) 85% of the
          fair market value of the stock on the last business day of the
          Offering. Fair market value shall mean the closing bid price as
          reported on the National Association of Securities Dealers Automated
          Quotation System or, if the stock is traded on a stock exchange, the
          closing price for the stock on the principal such exchange.

6.   Offering Date.

     The "Offering date" as used in this Plan shall be the commencement date of
     the Offering, if such date is a regular business day in the United States,
     or the first regular business day in the United States following such
     commencement date. A different date may be set by resolution of the Board.

7.   Number of Shares to be Offered.

     The maximum number of shares that will be offered under the Plan is 500,000
     shares. The shares to be sold to participants under the Plan will be common
     stock of the Company. If the total number of shares for which options are
     to be granted on any date in accordance with Section 10 exceeds the number
     of shares then available under the Plan (after deduction of all shares for
     which options have been exercised or are then outstanding), the Company
     shall make a pro rata allocation of the shares remaining available in as
     nearly a uniform manner as shall be practicable and as it shall determine
     to be equitable. In such event, the payroll deductions to be made pursuant
     to the authorizations therefor shall be reduced accordingly and the Company
     shall give written notice of such reduction to each employee affected
     thereby.

8.   Participation.

     8.1  An eligible employee may become a participant by completing an
          Enrolment Agreement (See Attachment 1) provided by the Company and
          filing it with  Shareholder Services prior to the Commencement of the
          Offering to which it relates.

                                       2
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9.   Payroll Deductions.

     9.1  At the time a participant files their authorization for a payroll
          deduction, they shall elect to have deductions made from their pay on
          each payday during the time they are a participant in an Offering at
          the rate of 2%, 4%, 6%, 8%, or 10% of their base pay.

     9.2  Payroll deductions for a participant shall commence on the Offering
          date and shall end on the termination date of such Offering unless
          earlier terminated by the employee as provided in Paragraph 14.

     9.3  All payroll deductions made for a participant shall be credited to
          their account under the Plan. A participant may not make any separate
          cash payment into such account nor may payment for shares be made
          other than by payroll deduction.

     9.4  A participant may discontinue their participation in the Plan as
          provided in Section 14.  In addition, they may reduce their
          contribution once during an Offering, but no other change can be made
          during an Offering.

10.  Granting of Option.

     On the Offering date, this Plan shall be deemed to have granted to the
     participant an option for as many shares as they will be able to purchase
     with the payroll deductions credited to their account during their
     participation in that Offering.

11.  Exercise of Option.

     Each employee who continues to be a participant in an Offering on the last
     business day of that Offering shall be deemed to have exercised their
     option on such date and shall be deemed to have purchased from the Company
     such number of shares of common stock reserved for the purpose of the Plan
     as their accumulated payroll deductions on such date will pay for at the
     purchase price.

12.  Employee's Rights as a Shareholder.

     No participating employee shall have any right as a shareholder with
     respect to any shares until the shares have been purchased in accordance
     with Section 11 above and the stock has been issued by the Company.

13.  Evidence of Stock Ownership.

     13.1 Promptly following the end of each Offering, the number of shares of
          common stock purchased by each participant shall be deposited into an
          account established in the participant's name at a stock brokerage or
          other financial services firm designated by the Company (the "ESPP
          Broker").

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     13.2 The participant may direct, by written notice to the Company at the
          time of their enrolment in the Plan, that their ESPP Broker account be
          established in the names of the participant and one other person
          designated by the participant, as joint tenants with right of
          survivorship, tenants in common, or community property, to the extent
          and in the manner permitted by applicable law.

     13.3 A participant subject to payment of U.S. income taxes shall be free to
          undertake a disposition (as that term is defined in Section 424(c) of
          the Code) of the shares in their account at any time, whether by sale,
          exchange, gift, or other transfer of legal title, but in the absence
          of such a disposition of the shares, the shares must remain in the
          participant's account at the ESPP Broker until the holding period set
          forth in Section 423(a) of the Code has been satisfied. With respect
          to shares for which the Section 423(a) holding period has been
          satisfied, the participant may move those shares to another brokerage
          account of participant's choosing or request that a stock certificate
          be issued and delivered to them.

     13.4 A participant who is not subject to payment of U.S. income taxes may
          move their shares to another brokerage account of their choosing or
          request that a stock certificate be issued and delivered to them at
          any time, without regard to the satisfaction of the Section 423(a)
          holding period.

14.  Withdrawal.

     14.1 An employee may withdraw from an Offering, in whole but not in part,
          at any time prior to the last business day of such Offering by
          delivering a Withdrawal Notice (see Attachment 2) to the Company, in
          which event the Company will refund the entire balance of their
          deductions as soon as practicable thereafter.

     14.2 To re-enter the Plan, an employee who has previously withdrawn must
          file a new Enrolment Agreement in accordance with Section 8.1. The
          employee's re-entry into the Plan will not become effective before the
          beginning of the next Offering following their withdrawal, and if the
          withdrawing employee is an officer of the Company within the meaning
          of Section 16 of the Securities Exchange Act of 1934 they may not re-
          enter the Plan before the beginning of the second Offering following
          their withdrawal.

15.  Carryover of Account.

     At the termination of each Offering, the Company shall automatically re-
     enroll the employee in the next Offering, and the balance in the employee's
     account shall be used for option exercises in the new Offering, unless the
     employee has advised the Company otherwise. Upon termination of the Plan,
     the balance of each employee's account shall be refunded to them.

16.  Interest.

     Interest earned on the account will be distributed pro-rata between the
     employees on the basis of the balance in each employee's account.  This
     interest will be added to the total of the payroll deductions when
     calculating the number of shares which may be purchased.

                                       4
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17.  Rights Not Transferable.

     No employee shall be permitted to sell, assign, transfer, pledge, or
     otherwise dispose of or encumber either the payroll deductions credited to
     their account or any rights with regard to the exercise of an option or to
     receive shares under the Plan other than by will or the laws of descent and
     distribution, and such right and interest shall not be liable for, or
     subject to, the debts, contracts, or liabilities of the employee. If any
     such action is taken by the employee, or any claim is asserted by any other
     party in respect of such right and interest whether by garnishment, levy,
     attachment or otherwise, such action or claim will be treated as an
     election to withdraw funds in accordance with Section 14.

18.  Termination of Employment.

     Upon termination of employment for any reason whatsoever, including but not
     limited to death or retirement, the balance in the account of a
     participating employee shall be paid to the employee or their estate.

19.  Amendment or Discontinuance of the Plan.

     The Board shall have the right to amend, modify, or terminate the Plan at
     any time without notice, provided that no employee's existing rights under
     any Offering already made under Section 4 hereof may be adversely affected
     thereby, and provided further that no such amendment of the Plan shall,
     except as provided in Section 20, increase above 500,000 shares the total
     number of shares to be offered unless shareholder approval is obtained
     therefor.

20.  Changes in Capitalization.

     In the event of reorganization, recapitalization, stock split, stock
     dividend, combination of shares, merger, consolidation, offerings of
     rights, or any other change in the structure of the common shares of the
     Company, the Board may make such adjustment, if any, as it may deem
     appropriate in the number, kind, and the price of shares available for
     purchase under the Plan, and in the number of shares which an employee is
     entitled to purchase.

21.  Share Ownership.

     Notwithstanding anything herein to the contrary, no employee shall be
     permitted to subscribe for any shares under the Plan if such employee,
     immediately after such subscription, owns shares (including all shares
     which may be purchased under outstanding subscriptions under the Plan)
     possessing 5% or more of the total combined voting power or value of all
     classes of shares of the Company or of its parent or subsidiary
     corporations. For the foregoing purposes the rules of Section 425(d) of the
     Internal Revenue Code of 1986 shall apply in determining share ownership.
     In addition, no employee shall be allowed to subscribe for any shares under
     the Plan which permits their rights to purchase shares under all "employee
     stock purchase plans" of the Company and its subsidiary corporations to
     accrue at a rate which exceeds $25,000 for each calendar year in which such
     right to subscribe is outstanding at any time.

                                       5
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22.  Administration.

     The Plan shall be administered by the Board. The Board may delegate any or
     all of its authority hereunder to such committee of the Board or officer of
     the Company as it may designate. The administrator shall be vested with
     full authority to make, administer, and interpret such rules and
     regulations as it deems necessary to administer the Plan, and any
     determination, decision, or action of the administrator in connection with
     the construction, interpretation, administration, or application of the
     Plan shall be final, conclusive, and binding upon all participants and any
     and all persons claiming under or through any participant.

23.  Notices.

     All notices or other communications by a participant to the Company under
     or in connection with the Plan shall be deemed to have been duly given when
     received by Shareholder Services of the Company or when received in the
     form specified by the Company at the location, or by the person, designated
     by the Company for the receipt thereof.

24.  Termination of the Plan.

     This Plan shall terminate at the earliest of the following:

     24.1 July 31, 2006.

     24.2 The date of the filing of a Statement of Intent to Dissolve by the
          Company or the effective date of a merger or consolidation wherein the
          Company is not to be the surviving corporation, which merger or
          consolidation is not between or among corporations related to the
          Company.  Prior to the occurrence of either of such events, on such
          date as the Company may determine, the Company may permit a
          participating employee to exercise the option to purchase as many
          shares as the balance of their account will allow at the price set
          forth in accordance with Section 5.  If the employee elects to
          purchase shares, the remaining balance of their account will be
          refunded to them after such purchase.

     24.3 The date the Board acts to terminate the Plan in accordance with
          Section 19 above.

     24.4 The date when all shares reserved under the Plan have been purchased.

25.  Limitations on Sale of Stock Purchased under the Plan.

     The Plan is intended to provide common stock for investment and not for
     resale. The Company does not, however, intend to restrict or influence any
     employee in the conduct of their own affairs. An employee, therefore, may
     sell stock purchased under the Plan at any time they choose, subject to the
     Company's policy on Insider Trading and compliance with any applicable
     Federal or state securities laws. THE EMPLOYEE ASSUMES THE RISK OF ANY
     MARKET FLUCTUATIONS IN THE PRICE OF THE STOCK.

                                       6
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26.  Governmental Regulation.

     The Company's obligation to sell and deliver shares of the Company's common
     stock under this Plan is subject to the approval of any governmental
     authority required in connection with the authorization, issuance, or sale
     of such shares.

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                                 ATTACHMENT 1

                             AIRSPAN NETWORKS INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

                                ENROLMENT FORM

     Your attention is drawn to the following:

     Under current United Kingdom legislation, Employer's National Insurance
     Contributions are payable by the Company when the employee purchases the
     shares.  This is currently calculated at 12.2% of the `discount', i.e. the
     difference between the purchase price and the fair market value at the date
     of the purchase. However, draft legislation has been published in the
     United Kingdom which will allow the Company to pass on the statutory
     liability for payment of this to the employee by means of a joint election.
     Should either this legislation not become law, or should it not be possible
     under the legislation for the employee to pay all of the Employer's
     National Insurance Contributions arising on the purchase of shares under
     this Plan, then this scheme will be terminated immediately, and any
     deductions already processed through the payroll will be returned
     forthwith.

     Current legislation in some countries dictates that tax and Employee's and
     Employer's National Insurance Contributions are payable on exercise of
     share options. Employees in these countries may wish to consider selling a
     proportion of their shares in order to provide funds for the payment of
     these deductions, and in any event the Company may require that the
     employee makes good the amount of tax (including Employee's and Employer's
     National Insurance Contributions) arising on the exercise of the option,
     within 30 days of the exercise of the option or such earlier time as the
     Company may reasonably require.

                                       8
<PAGE>

                             AIRSPAN NETWORKS INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

                                ENROLMENT FORM

I, _____________________________, wish / do not wish  (please delete as
appropriate) to apply to participate in the Airspan Networks Inc. 2000 Employee
Stock Purchase Plan.

I authorise the Company to deduct an amount from my salary equal to      % of my
base pay, as defined in Paragraph 2.1 of the Plan, per pay run.

I wish my ESPP broker account to be established in the name(s) of:

______________________________     and     ______________________________

I understand that, on exercise, I will be responsible for the relevant tax and
Employee's and Employer's National Insurance Contributions (to the extent
permitted by law) as noted in Paragraph 11 of the Plan.

I have read and understood the terms and conditions attaching to the Plan.

I understand that the market value of the shares can fall as well as rise.

I understand that if I fail (within seven (7) days of receipt from the Company
of a notice requiring the same) to enter into any further agreement or election
reasonably required by the Company which will enable me to pay the entirety of
the Employer's National Insurance Contributions arising when I purchase shares
in the Company under this Plan then my right to purchase shares under this Plan
will be suspended and any deduction already processed through the payroll will
be returned forthwith to me.

_____________________________________         ______________________________
Signature                                     Date

                                       9
<PAGE>

                                 ATTACHMENT 2

                             AIRSPAN NETWORKS INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

                          WITHDRAWAL / AMENDMENT FORM

I,__________________________________, wish to reduce my contributions to the
Airspan Networks Inc. 2000 Employee Stock Purchase Plan.

I authorise the Company to deduct an amount from my salary equal to      % of my
base pay, as defined in Paragraph 2.1 of the Plan, per pay run commencing from
the next pay run to be processed.

I,__________________________________, wish to withdraw from the Airspan
Networks Inc. 2000 Employee Stock Purchase Plan.

I understand that I will not be able to re-enter the plan until the next
Offering date.

(Section 16 employees will not be able to re-enter the plan until the next but
one Offering date).

_____________________________________         ______________________________
Signature:                                    Date:

                                       10<PAGE>

                                                                     EXHIBIT 4.3

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:              Amazon.com, Inc.
                                             (the "Initial Holder")

     No. W-3                                 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 two-year period beginning on the date
hereof and ending on July 30, 2002.

                                       1
<PAGE>

          "Exercise Price" means $ 4.9375 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 that may be
issued pursuant to Section 4 hereof in substitution or exchange for or upon
transfer of this warrant, any warrant that 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.
                        -------------------
          (a) 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.

          (b) Notwithstanding the payment provisions set forth above, the Holder
may surrender this Warrant and, in lieu of payment of the Exercise Price in
cash, elect to have the Company cancel such number of Warrant Shares as may be
sufficient to satisfy the Exercise Price.  If the Holder so elects, then the
Company shall issue to the Holder the number of Warrant Shares determined as
follows:

                                       2
<PAGE>

                                 X = Y (A - B)
                                     ---------
                                       A
     Where:    X = the number of shares of Common Stock to be issued to the
                   Holder
               Y = the number of Warrant Shares subject to this Warrant
               A = the Fair Market Value (as defined below) of one (1) Warrant
                   Share
               B = the Exercise Price
               Y-X = the number of Warrant Shares cancelled to satisfy the
                     Exercise Price

          For purposes of the above calculation, the "Fair Market Value" shall
be determined by the average of the closing bid and asked prices of the
Company's capital stock as quoted in the Over-the-Counter Market Summary or the
last reported sale price of the capital stock or the closing price quoted on the
Nasdaq National Market System or on any exchange on which such capital stock is
then listed, whichever is applicable, for the five trading days prior to the
date of exercise of this Warrant, provided, however, that if no public market
for the Company's capital stock exists at the time of such exercise, "Fair
Market Value" of a Warrant Share shall be determined in good faith by the Board
of Directors of the Company.  For purposes of a transaction specified in Section
7(b), "Fair Market Value" of a Warrant Share shall mean the value of the
consideration (determined, in the case of non-cash consideration, in good faith
by the Company's Board of Directors) to be received pursuant to such transaction
by the holder of one share of Warrant Stock.

          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 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

                                       3
<PAGE>

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.

          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

                                       4
<PAGE>

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, 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.

                                       5
<PAGE>

          (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.

          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

                                       6
<PAGE>

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
its 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.

          (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 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.

          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 is a wholly owned subsidiary of the
Holder

          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.

                                       7
<PAGE>

          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]

                                       8
<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 July
30, 2000.

                                    drugstore.com, inc.

                                    By:/s/ Peter M. Neupert
                                       ----------------------------------

                                    Name: Peter M. Neupert
                                         --------------------------------

                                    Title: CEO
                                          -------------------------------

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

ACCEPTED AND AGREED:

Amazon.com, Inc.

By:/s/ Mark Britto
   -----------------------------

Name: Mark Britto
     ---------------------------

Title: VP
      --------------------------

1200 S. 12th, Ste. 1200
Seattle, WA 98144
Attn: General Counsel

                                       9
<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, or

     [_]  tenders the attached Warrant for cancellation to the extent necessary
     to effect the payment therefor in accordance with the net exercise
     provision of Section 2 (b) of the attached Warrant.

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]

                                       10
<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.

                                       11

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