Document:

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                                                                   EXHIBIT 10.28

                                                                  Execution Copy

                                 Confidential
                        INTERACTIVE MARKETING AGREEMENT
                        -------------------------------

     This Interactive Marketing Agreement (the "Agreement"), dated as of
February 4, 2000 (the "Effective Date"), is between America Online, Inc.
("AOL"), a Delaware corporation, with offices at 22000 AOL Way, Dulles, Virginia
20166, and Onvia.com, Inc. ("Onvia"), a Washington corporation, with offices at
1000 Dexter Ave. N., 4th Floor, Seattle, WA  98109-3574.  AOL and Onvia may be
referred to individually as a "Party" and collectively as the "Parties."

                                 INTRODUCTION
                                 ------------

     To the extent set forth herein, AOL and Onvia each desires to enter into an
interactive marketing relationship whereby AOL will provide Onvia with
distribution across certain AOL properties via promotion of an interactive site
referred to (and further defined) herein as the Co-Branded Site, and Onvia will
build a web-based buying directory by leveraging Netscape's programming,
services and tools with Onvia's expertise.  This Agreement describes the
relationship more fully below and sets forth additional material terms and
conditions.  Defined terms used but not defined in the body of the Agreement
will be as defined on Exhibit B attached hereto.

                                     TERMS
                                     -----

1.   PROMOTION, DISTRIBUTION AND MARKETING.
     -------------------------------------

     1.1.  AOL Promotion of Co-Branded Site.  AOL will provide Onvia with the
           --------------------------------
           promotions for the Co-Branded Site described on Exhibit A attached
           hereto (however, the parties recognize that AOL does not have the
           authority to bind AOL Canada, and carriage thereon is subject to AOL
           Canada's agreement, provided that AOL will use commercially
           reasonable efforts to enter into an agreement with AOL Canada before
           Onvia's carriage thereon is scheduled to begin, and if such an
           agreement cannot be entered into, AOL will provide Onvia comparable
           promotional placements in appropriate alternative areas of the AOL
           Network). Subject to Onvia's approval not to be unreasonably
           withheld, AOL will have the right to fulfill its promotional
           commitments with respect to any of the foregoing by providing Onvia
           comparable promotional placements in appropriate alternative areas of
           the AOL Network. In addition, if AOL is unable to deliver any
           particular Promotion, AOL will work with Onvia to provide Onvia a
           mutually agreed comparable promotional placement, which if so
           provided shall constitute Onvia's sole remedy. If the Parties cannot
           mutually agree on a comparable placement despite good faith efforts
           to do so, then the Parties will attempt to resolve any disagreement
           in accordance with the provisions of Section 7 hereof. AOL reserves
           the right to redesign or modify the organization, structure, "look
           and feel," navigation and other elements of the AOL Network at any
           time. In the event such redesigns or modifications materially and
           adversely affect any specific Promotion, AOL will work with Onvia to
           provide Onvia a comparable promotional placement as soon as is
           commercially reasonable, and if so provided such comparable placement
           shall constitute Onvia's sole remedy. Notwithstanding anything to the
           contrary herein, with respect to any Integrated Impressions set forth
           on Exhibit A, the Parties expressly acknowledge and agree that any
           reference anywhere herein to `comparable placements' for such
           Integrated Impressions shall be calculated at a [* * *] rate.

     1.2.  Impressions Commitment.  During the Term, AOL shall deliver [* * *]
           ----------------------
           Impressions to the Co-Branded Site through the Promotions (the
           "Impressions Commitment"), except as otherwise set forth herein
           (e.g., Section 3.4 hereof with respect to the Integrated
           Impressions). With respect to the Impressions targets specified on
           Exhibit A, AOL will not be obligated to provide in excess of any
           Impressions target amounts in any year, subject to the make-good
           commitment set forth below in this Section 1.2. In the event there is
           (or

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           will be in AOL's reasonable judgment) a shortfall in Impressions as
           of the end of the Initial Term (including with respect to the
           Integrated Impressions) (a "Final Shortfall"), AOL will provide
           Onvia, as its sole remedy (other than the pro rata refund provided
           for later in this Section 1.2), with an extension of its existing
           promotional obligations hereunder (i.e. promoting the Co-Branded Site
           consistent with the terms hereof, e.g., Exhibit A hereto) until the
           Impressions Commitment has been satisfied, up to a maximum of six (6)
           months (and Onvia shall not be required to pay additional carriage
           fees for such an extension). In the event that the Impressions
           Commitment still has not been satisfied at the end of such six month
           extension period, AOL will provide Onvia, as its sole remedy, with a
           refund of a pro rata percentage of the total Fixed Payment Amount
           paid by Onvia pursuant to Section 3.1 hereof, to the extent that AOL
           has actually received such payments from Onvia and such payments
           remain unearned at the time of refund (i.e., a proportionate
           percentage of the Impressions Commitment has not been delivered at
           the time of termination). Except as otherwise set forth herein or
           otherwise mutually agreed, after the Co-Branded Site has been created
           and launched in accordance with this Agreement, AOL will use good
           faith efforts, on a quarterly basis, to distribute Impressions to
           standard, non-integrated, rotating buttons and banners (excluding any
           fixed or permanent placements) reasonably consistently over the
           course of the Initial Term, provided that the Parties understand that
           such consistency may be affected by such factors as seasonality and
           special offers. In addition, with respect to all the Promotions
           hereunder (i.e., not only the standard, non-integrated, rotating
           buttons and banners discussed in the previous sentence), AOL will use
           good faith efforts to deliver approximately [* * *] of the
           Impressions Commitment during the first six months of the Term,
           approximately [* * *] of the Impressions Commitment during the first
           full year of the Term, and one hundred percent (100%) of the
           Impressions Commitment during the entire Term; provided that if AOL
           fails to achieve any such percentage target despite good faith
           efforts to do so, such failure shall not constitute a breach hereof,
           but AOL shall use commercially reasonable efforts to make up a
           shortfall in either of the first two percentage targets in the
           following six month period.

     1.3.  Content of Promotions.  Except as otherwise set forth herein, the
           ---------------------
           Promotions will link only to the Co-Branded Site and will promote
           only the Onvia Products described (and to the extent permitted) on
           Exhibit D. The specific Onvia Content to be contained within the
           Promotions described in Exhibit A (the "Promo Content") will be
           determined by Onvia, subject to AOL's technical limitations, the
           terms of this Agreement and AOL's then-applicable policies relating
           to advertising and promotions. Onvia will submit in advance to AOL
           for its review a quarterly online marketing plan with respect to the
           Co-Branded Site. The Parties will meet in person or by telephone at
           least monthly to review operations and performance hereunder,
           including a review of the Promo Content to ensure that it is designed
           to maximize performance, and use good faith efforts to attempt to
           optimize performance. Onvia will consistently update the Promo
           Content no less than twice per week. Except to the extent expressly
           described herein, the specific form, placement, duration and nature
           of the Promotions will be as determined by AOL in its reasonable
           editorial discretion (consistent with the editorial composition of
           the applicable screens).

     1.4.  Onvia Promotion of Co-Branded Site and AOL.  To the extent set forth
           ------------------------------------------
           in Exhibit C, Onvia will provide AOL with certain contextually
           relevant promotions and placement. Under all circumstances, Onvia
           will promote AOL as a preferred access provider to the content and
           services as contemplated herein.

2.   CO-BRANDED SITE.
     ---------------

     2.1.  Creation of Co-Branded Site.    Onvia will create a customized,
           ---------------------------
           co-branded version of Onvia's Standard Site as the Co-Branded Site
           (to the extent consistent with the terms hereof), including distinct
           versions of the Co-Branded Site for each applicable property of the
           AOL Network (i.e., each brand in which Onvia has carriage hereunder,
           except for AOL Canada) as set forth in Exhibit H hereto (e.g., one
           for linking from the AOL Service which

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           is co-branded with the AOL brand, one for linking from the CompuServe
           Service which is co-branded with the CompuServe brand, etc., except
           for AOL Canada, in which case, the site(s) linked to therefrom shall
           not include any AOL co-branding, but all other requirements in this
           Agreement relating to the Co-Branded Site shall apply to such
           site(s)). Onvia will use commercially reasonable efforts to include
           certain distinct Content within each such distinct version of the Co-
           Branded Site, tailored and targeted to the applicable audience as
           mutually agreed (the "Brand Specific Content"). Onvia will comply
           with AOL's and its affiliates' then generally applicable
           customization standards and design guideline templates for each
           property with respect to headers, footers, co-branding and URLs, by
           way of example as set forth on Exhibit H attached hereto. Each page
           of the Co-Branded Site shall (i) have AOL or AOL affiliate branded
           headers and footers, (ii) be located on a co-branded URL with the
           appropriate AOL affiliate as the primary domain (e.g.,
           www.onvia.aol.com or www.onvia.netscape.com, except as otherwise
           -----------------    ----------------------
           expressly set forth in Section 2.3) such that AOL receives credit for
           traffic thereto, in each case in accordance with AOL's (or the
           applicable AOL affiliate's) then-current generally applicable
           standards, and (c) contain navigational links to the appropriate
           property of the AOL Network. AOL agrees to make reasonable efforts to
           work with Onvia to enable the two then-most widely quoted,
           nationally-recognized third party Internet traffic measurement and
           reporting services (such as Media Metrix or Neilson Net Rating) (the
           "Ratings Agencies") to attribute secondary credit for traffic to the
           Co-Branded Site to Onvia (e.g., through a syndicated report or such
           other report developed by the Ratings Agencies) as part of Onvia's
           overall network (i.e., so that if and where Onvia is mentioned in any
           publicly announced traffic measurements or reports (other than the
           Top 50 Reports as defined below) of the Ratings Agencies regarding [*
           * *], such measurements or reports will combine as part of a single
           total the traffic of [* * *] (as the case may be) to the Standard
           Site and Co-Branded Site (collectively, the "Onvia Desired Result"),
           by, if and to the extent necessary to achieve such Onvia Desired
           Result, (a) issuing a duly authorized letter to the Rating Agencies
           requesting such credit for Onvia (the "Traffic Letter"); and (b) if
           issuance of the Traffic Letter does not achieve such Onvia Desired
           Result in [* * *], as Onvia's sole remedy, locating the one main
           home/entry page of the Co-Branded Site on an Onvia owned URL that
           includes appropriate AOL branding to the left of the Onvia domain
           (e.g., www.aol.onvia.com) (but expressly not any other pages of the
                  -----------------
           Co-Branded Site, which shall all remain on an AOL URL as set forth
           above). So long as AOL satisfies the express requirements of this
           section, failure to achieve the Onvia Desired Result shall not be
           considered a breach of this Agreement by AOL. The Parties acknowledge
           and agree that the Onvia Desired Result cannot currently be
           accomplished with respect to reports or measurements by the Ratings
           Agencies of the top 50 Internet sites (the "Top 50 Reports"), and
           that if traffic of unique visitors to the Co-Branded Site and
           Standard Site in the aggregate reaches a level which otherwise would
           qualify those sites together as a top 50 Internet site, AOL and Onvia
           will work in good faith to discuss a mutually acceptable means of
           attributing such traffic to Onvia and AOL. AOL shall have the right
           to change or modify its design guideline templates and co-branding
           requirements during the Term, to conform to general changes made to
           the AOL Network or portions thereof, so long as it does not impair
           Onvia's ability to receive credit for traffic in accordance with this
           Section 2.1. In the event that any such changes result in significant
           redesign costs or reduction in placement value, the Parties will work
           together in good faith to attempt to minimize such financial impact.
           Within a reasonable amount of time following the Effective Date
           (Onvia shall make commercially reasonable efforts to ensure that such
           amount of time does not exceed sixty (60) days, and in no event shall
           it exceed ninety (90) days), Onvia will integrate into the Co-Branded
           Site, AOL's tools and technology for Quick Checkout. In addition,
           within a reasonable amount of time following the Effective Date
           (Onvia shall make commercially reasonable efforts to ensure that such
           amount of time does not exceed sixty (60) days, and in no event shall
           it exceed ninety (90) days), Onvia shall use commercially reasonable
           efforts to integrate into the Co-Branded Site, AOL's tools and
           technology for Shopping Cart and Search, if and as applicable and
           commercially reasonable in each case, plus such other tools and
           technology as the

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           Parties may further mutually agree.  Notwithstanding the foregoing,
           the Parties acknowledge that Onvia shall have a reasonable amount of
           time (Onvia shall make commercially reasonable efforts to ensure that
           such amount of time does not exceed thirty (30) days, and in no event
           shall it exceed sixty (60) days) from and after the execution hereof
           to build the Co-Branded Site, including the Co-Branded Site Buying
           Directory, during which such time AOL may elect to instead link to
           the Standard Site, and during which such time, Onvia will ensure that
           the Standard Site does not promote any Interactive Service other than
           AOL.

     2.2.  Content and Programming.  Onvia will make available through the Co-
           -----------------------
           Branded Site (and the AOL Buying Directory and the RFQ/RFI
           Promotional Area) the comprehensive offering of Products and related
           Content described on Exhibit D in accordance with the terms thereof.
           Except as mutually agreed in writing by the Parties, the Co-Branded
           Site will contain only Content that is directly related to the Onvia
           Products listed on Exhibit D. Notwithstanding the foregoing, Onvia
           may promote, sell, offer or otherwise distribute products through its
           "Request for Quote" services (by which a business can specify a
           request for products or services and obtain responses from merchants
           interested in satisfying such requests) existing as of the Effective
           Date and as updated from time to time in accordance with this
           Agreement (the "RFQ Services") or "Request for Information" services
           (by which a business can specify a request for information and obtain
           responses from providers interested in satisfying such requests)
           existing as of the Effective Date and as updated from time to time in
           accordance with this Agreement (the "RFI Services") on any page of
           the Co-Branded Site if and to the extent permitted by Exhibit D
           hereto. Onvia will review, delete, edit, create, update and otherwise
           manage all Content available on or through the Co-Branded Site in
           accordance with the terms of this Agreement. Onvia will ensure that
           the Content of the Promotions and the Co-Branded Site do not in any
           respect promote, advertise, market or distribute the products,
           services or content of any other Interactive Service, and that the
           Content of the Promotions does not in any respect promote any entity
           reasonably construed to be in competition with any third party with
           which AOL has an exclusive or premier relationship, as identified by
           the Restricted Categories and Prohibited Categories of Exhibit D
           hereto. Onvia will provide AOL and the Co-Branded Site with the
           programming, content, and services set forth on Exhibit A-1. AOL will
           integrate Onvia's content, programming and services in the manner and
           areas set forth in Exhibit A-1.

     2.3.  Production Work.  Except as agreed to in writing by the Parties
           ---------------
           pursuant to the "Production Work" section of the Standard Online
           Commerce Terms & Conditions attached hereto as Exhibit F, and except
           as otherwise expressly set forth herein, Onvia will be responsible
           for all hosting and production work associated with the Co-Branded
           Site (including the Co-Branded Site Buying Directory), including all
           related costs and expenses. Onvia will provide, maintain, and support
           all necessary software and hardware. Onvia will modify links within
           the Co-Branded Site, where appropriate, to re-circulate users to the
           appropriate AOL property. Onvia will ensure that all AOL users in the
           Co-Branded Site (including the Co-Branded Site Buying Directory) will
           not be able to access any additional links to the Standard Site,
           except as expressly stated in this Agreement. Except as otherwise
           expressly set forth herein, the AOL Buying Directory shall reside
           within the AOL Network (but be provided to AOL and managed in
           accordance with the terms hereof by Onvia), such that AOL shall be
           responsible for hosting such AOL Buying Directory (except the results
           pages thereof, which shall be hosted by Onvia) and the AOL Aggregated
           RFQ Area, and Onvia shall be responsible for production and
           operation/management thereof, in accordance with the terms hereof. In
           addition, for a period of 60 days from and after the Effective Date
           hereof, the Parties shall discuss in good faith the possibility of
           AOL hosting the results page of the AOL Buying Directory rather than
           Onvia, and if so the terms and conditions applicable thereto (e.g.,
           the costs and charges Onvia would pay to AOL in return therefor).

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     2.4.  Technology.  Onvia will optimize the performance of the AOL Buying
           ----------
           Directory, Co-Branded Site Buying Directory, RFQ/RFI Promotional
           Areas and the Co-Branded Site for integration on the AOL properties
           (e.g., without limitation, by taking all commercially reasonable
           steps necessary to conform its promotion and sale of Products through
           the Co-Branded Site to the then-existing technologies identified by
           AOL which are optimized for the AOL Service, provided that Onvia
           shall have a reasonable time in which to do so following notice from
           AOL). AOL will be entitled to require reasonable changes to the
           Content (including, without limitation, the features or
           functionality) within any linked pages of the Co-Branded Site to the
           extent such Content will, in AOL's reasonable good faith judgment,
           adversely affect any operational aspect of any portion of the AOL
           Network. AOL reserves the right to review and test the Co-Branded
           Site from time to time to determine whether the site is compatible
           with AOL's then-available client and host software and the AOL
           Network.

     2.5.  Product Offering.  Onvia will ensure that the Products and other
           ----------------
           Content offered on the Co-Branded Site shall, in all material
           respects, be substantially equivalent to or better than all of the
           Products and other Content (including, without limitation, any
           features, offers, contests, functionality or technology) that are
           then made available by or on behalf of Onvia through any Additional
           Onvia Channel; provided, however, that (i) the inclusion of certain
           Products or Content will not be required where it is commercially or
           technically impractical to either Party (i.e., inclusion would cause
           either Party to incur substantial incremental costs); and (ii) the
           specific changes in scope, nature and/or offerings required by such
           inclusion will be subject to AOL's review and reasonable approval and
           the terms of this Agreement.

     2.6.  Pricing and Terms.  Onvia will ensure that: (i) on the whole, the
           -----------------
           prices (and any other required consideration) for Products in the Co-
           Branded Site do not generally exceed the prices for the Products or
           substantially similar Products offered by or on behalf of Onvia
           through any Additional Onvia Channel; and (ii) the terms and
           conditions related to Products in the Co-Branded Site are generally
           no less favorable than the terms and conditions for the Products or
           substantially similar Products offered by or on behalf of Onvia
           through any Additional Onvia Channel.

     2.7.  Exclusive Offers/Member Benefits.  Onvia will generally promote
           --------------------------------
           through the Co-Branded Site any program of special or promotional
           offers made available by or on behalf of Onvia through any Additional
           Onvia Channel. In addition, Onvia shall promote through the Co-
           Branded Site on a reasonably regular and consistent basis special
           offers exclusively available to AOL Users (the "AOL Exclusive
           Offers"). The AOL Exclusive Offers made available by Onvia shall
           provide a substantial member benefit to AOL Users (but may be by
           means other than price (e.g., product enhancement, free shipping,
           unique service benefit or other special feature)). Onvia will use
           good faith efforts to provide AOL with reasonable prior notice of AOL
           Exclusive Offers so that AOL can market the availability of such AOL
           Exclusive Offers in the manner AOL deems appropriate in its editorial
           discretion reasonably exercised.

     2.8.  Operating Standards.  Onvia will ensure that the Co-Branded Site
           -------------------
           complies at all times with the standards set forth in Exhibit E. To
           the extent site standards are not established in Exhibit E with
           respect to any aspect or portion of the Co-Branded Site (or the
           Products or other Content contained therein), Onvia will provide such
           aspect or portion at a level of accuracy, quality, completeness, and
           timeliness which meets or exceeds prevailing standards in the
           business-to-business industry. In the event Onvia fails to comply
           with any material terms of this Agreement or any Exhibit attached
           hereto, AOL will have the right (in addition to any other remedies
           available to AOL hereunder) to decrease the promotion it provides to
           Onvia hereunder (and to decrease or cease any other contractual
           obligation hereunder) until such time as Onvia corrects its non-
           compliance (and in such event, AOL will be relieved of the
           proportionate amount of any promotional commitment made to

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           Onvia by AOL hereunder corresponding to such decrease in promotion)
           and any revenue threshold(s) set forth in Section 3 will each be
           adjusted proportionately to correspond to such decrease in promotion
           and other obligations during the period of non-compliance.

     2.9.  Advertising Sales.  AOL will own and manage all Co-Branded Site
           -----------------
           Advertising Inventory.  AOL will have the exclusive right to license
           and/or sell all Advertisements in the Co-Branded Site Advertising
           Inventory. Except for advertising inventory sold in the Co-Branded
           Site Buying Directory pages (including any Co-Branded Site Buying
           Directory category pages, sub-category pages, or results pages, and
           related pages), AOL agrees not to sell such Co-Branded Site
           Advertising Inventory to any of the entities listed in Schedule 2.9
           hereto. Onvia may not incorporate or link to any Advertisement or
           other commercial elements without AOL's prior written approval,
           except as otherwise expressly stated herein.

     2.10. Traffic Flow.  Onvia will take reasonable efforts to ensure that AOL
           ------------
           traffic is either kept within the Co-Branded Site or channeled back
           into the AOL Network (with the exception of advertising links sold
           and implemented pursuant to the Agreement). The Parties will work
           together on implementing mutually acceptable links from the Co-
           Branded Site back to the AOL Service. In the event that AOL points to
           the Co-Branded Site or any other Onvia Interactive Site or otherwise
           delivers traffic to such site hereunder, Onvia will ensure that
           navigation back to the AOL Network from such site, whether through a
           particular pointer or link, the "back" button on an Internet browser,
           the closing of an active window, or any other return mechanism, shall
           not be interrupted by Onvia through the use of any intermediate
           screen or other device not specifically requested by the user,
           including without limitation through the use of any html popup window
           or any other similar device. Rather, such AOL traffic shall be
           pointed directly back to the AOL Network as designated by AOL. Onvia
           will modify links within the co-branded pages, where appropriate, to
           re-circulate users to the appropriate AOL property. Onvia will ensure
           that all AOL Users in the co-branded areas will not be able to access
           any additional links to Onvia's Standard Site, except that links to
           certain mutually agreed newsfeed ("Newsfeed"), forms and proprietary
           tutorial content areas therein shall be permitted if and only to the
           extent that the Content in such areas is provided by third parties
           which forbid Onvia to sublicense the right to display such Content
           ("Permitted Third Party Unbranded Content"); provided, however, that
           such links shall link only and directly to the Permitted Third Party
           Unbranded Content (e.g., a particular news story) and the pages
           containing the Permitted Third Party Unbranded Content shall not
           contain any unrelated Content or Advertising preceding or framing
           such Permitted Third Party Unbranded Content (and the editorial
           content of such pages shall not contain promotions for Interactive
           Services other than AOL, it being understood that the editorial
           content within any such Newsfeeds (i.e., the text of the news story)
           shall not be deemed such a promotion). The number of pages containing
           Permitted Third Party Unbranded Content may not exceed five percent
           (5%) of the Content of the Co-Branded Site.

3.   PAYMENTS.
     --------

     3.1.  Guaranteed Payments.  Onvia will pay AOL Eighteen Million One Hundred
           -------------------
           Sixty Thousand Eight Hundred Four Dollars (US $18,160,804.00) (the
           "Fixed Payment Amount"), payable as follows:

          (i)                 Three Million Eighty Seven Thousand Three Hundred
                 Forty Dollars (US $3,087,340) within five (5) days of execution
                 hereof; and

          (ii)                Two Million Five Hundred Twelve Thousand Two
                 Hundred Forty Four Dollars (US $2,512,244) on the three (3),
                 six (6), nine (9), twelve (12), fifteen

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                 (15) and eighteen (18) month anniversaries of the date of
                 execution hereof, until fully paid;

          provided however, if during the Term, Onvia engages in any debt,
          ----------------
          equity, or other financing arrangement or series of arrangements
          raising proceeds equal to or in excess of $10,000,000 ("Funding
          Event"), then 35% of the then total remaining payments (excluding any
          past due amounts, which shall still be fully due and payable) will be
          due and payable to AOL on such Funding Event date and any further
          payment balance amounts still owing thereafter will be payable to AOL
          on a straight-lined basis over the balance of the term in quarterly
          payments until the total placement fee has been paid.  In addition to
          the foregoing, if no such Funding Event occurs within sixty (60) days
          of execution hereof, then Onvia shall pay AOL Two Million Five Hundred
          Twelve Thousand Two Hundred Forty Four Dollars (US $2,512,244) no
          later than five (5) days after that sixtieth day.  Such payment shall
          take the place of the installment payment which was to have been paid
          on the eighteen (18) month anniversary of the date of execution
          hereof, and all other terms of this Section 3.1 shall remain
          unchanged.  The Fixed Payment Amount provided for herein shall be
          refundable if and to the extent called for by Sections 1.2 and 5.4
          hereof.

    3.2.  Sharing of Transaction Margins.  During the Initial Term, Onvia shall
          ------------------------------
          retain [* * *] of the Transaction Margins generated by Onvia in the
          Co-Branded Site.

    3.3.  Sharing of Advertising Revenues.  AOL shall own the rights to
          -------------------------------
          Advertising Revenues generated through the Co-Branded Site Advertising
          Inventory, including without limitation in the Co-Branded Site Buying
          Directory, subject to the restrictions set forth in Section 2.9. AOL
          will pay to Onvia, [* * *] of Advertising Revenues received by AOL for
          such Advertisements in the Co-Branded Site Advertising Inventory,
          including without limitation in the Co-Branded Site Buying Directory,
          as described herein on a quarterly basis.

    3.4.  Performance Revenue.  Attached as Schedule 3.4 is a list of
          -------------------
          aspirational quarterly targets ("New Customer Targets") of users
          transacting for products or services (including registering for RFQ
          Services or RFI Services, entering into transactions in the Co-Branded
          Site Buying Directory, or registering for paid enhanced content or
          services) via the Co-Branded Site or otherwise directly via any
          Promotion hereunder ("New Customers"). For each quarter during the
          Term, if the number of New Customers meets or exceeds such quarter's
          applicable New Customer Target as so listed on Schedule 3.4, then for
          each New Customer beyond such New Customer Target (up to an aggregate
          maximum of [* * *] New Customers above such targets during the Term),
          Onvia shall pay to AOL an amount equal to [* * *] of the average cost
          to Onvia per New Customer, as calculated by dividing [* * *] [* * *]
          of the Fixed Payment Amount) by the total number of New Customers for
          such quarter (the "Performance Revenue"). The Performance Revenue
          attributable to a particular quarter shall be paid to AOL within
          thirty (30) days following the close of that quarter. In addition, if
          at the time which is eighteen (18) months from and after the Effective
          Date, AOL achieves the aggregate New Customer Target amount of New
          Customers for such 18 month period, then AOL shall have no more
          Impressions or other promotional obligations or commitments with
          respect to the AOL Buying Directory and the AOL Aggregated RFQ Area
          thereafter. If any New Customer Target is not achieved in any quarter,
          such event shall not constitute a breach hereof.

    3.5.  Late Payments; Wired Payments.  All amounts owed hereunder not paid
          -----------------------------
          when due and payable will bear interest from the date such amounts are
          due and payable at the prime rate in effect at such time. All payments
          required hereunder will be paid in immediately available, non-
          refundable U.S. funds wired to the "America Online" account, Account
          Number [* * *] at The Chase Manhattan Bank, 1 Chase Manhattan Plaza,
          New York, NY 10081 (ABA: [* * *]).

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    3.6.  Auditing Rights.  (a) Onvia will maintain complete, clear and accurate
          ---------------
          records of all expenses, revenues and fees in connection with the
          performance of this Agreement. For the sole purpose of ensuring
          compliance with this Agreement, AOL (or its representative) will have
          the right to conduct a reasonable and necessary inspection of portions
          of the books and records of Onvia which are relevant to Onvia's
          performance pursuant to this Agreement. Any such audit may be
          conducted after twenty (20) business days prior written notice to
          Onvia. AOL shall bear any and all of the reasonable, direct, out-of-
          pocket costs and expenses of any audit conducted pursuant to this
          Section 3.6 unless such audit shows an error in AOL's favor amounting
          to a deficiency to AOL in excess of five percent (5%) of the actual
          amounts paid and/or payable to AOL hereunder, in which event Onvia
          shall bear the reasonable expenses of the audit. Onvia shall pay AOL
          the amount of any deficiency discovered by AOL within thirty (30) days
          after receipt of notice thereof from AOL. (b) For the sole purpose of
          ensuring compliance with Sections 3.3 and 3.9 of this Agreement, Onvia
          will have the right to a reasonable and necessary inspection to be
          conducted by an independent third party selected in good faith by AOL,
          of portions of the books and records of AOL which are relevant to
          AOL's performance pursuant to those sections. Such right may not be
          exercised more than two times per year. AOL shall select such third
          party auditor within twenty (20) business days of Onvia's written
          notice to AOL of its desire for such audit, and the audit shall begin
          within a reasonable amount of time following such selection. Onvia
          shall bear any and all of the reasonable, direct, out-of-pocket costs
          and expenses of any audit conducted pursuant to this Section 3.9
          unless such audit shows an error in Onvia's favor amounting to a
          deficiency to Onvia in excess of five percent (5%) of the actual
          amounts paid and/or payable to Onvia hereunder, in which event AOL
          shall bear the reasonable expenses of the audit.

    3.7.  Taxes.  Onvia will collect and pay and indemnify and hold AOL harmless
          -----
          from, any sales, use, excise, import or export value added or similar
          tax or duty not based on AOL's net income, including any penalties and
          interest, as well as any costs associated with the collection or
          withholding thereof, including reasonable attorneys' fees.

    3.8.  Reports.
          -------

          3.8.1  Sales Reports. Onvia will provide AOL in an automated manner
                 -------------
                 with reports in an AOL-designated format, detailing the
                 following activity in such period (and any other information
                 mutually agreed upon by the Parties or reasonably required for
                 measuring revenue activity by Onvia through the Co-Branded
                 Site): (i) summary sales information by day (i.e., date, number
                 of Products, number of orders, total Transaction Margins); and
                 (ii) detailed sales information (i.e., e-mail address or
                 screenname, category of service provided (e.g., RFQ Services,
                 RFI Services, etc.), and, if and to the extent Onvia
                 categorizes its services into vertical market segments, then
                 the applicable vertical market segment) (in information in
                 clauses (i) and (ii), "Sales Reports"). If and to the extent
                 required to comply with this section, Onvia shall tailor its
                 privacy policy for the Standard Site for use with the Co-
                 Branded Site. Onvia shall use commercially reasonable efforts
                 to provide such reports monthly or as otherwise requested by
                 AOL, and shall in any event provide them at least quarterly.
                 AOL will be entitled to use the Sales Reports in its business
                 operations, subject to the terms of this Agreement. AOL
                 acknowledges that such reports may contain Confidential
                 Information as defined herein. More generally, each payment to
                 be made by Onvia pursuant to this Section will be accompanied
                 by a report containing information which supports the payment,
                 including information identifying (i) gross Transaction Margins
                 and all items deducted or excluded from gross Transaction
                 Margins to produce Transaction Margins, including, without
                 limitation, chargebacks and credits for returned or canceled
                 goods or services (and, where possible, an explanation of the
                 type of reason therefor, e.g., bad credit card information,
                 poor customer service, etc.); (ii) any applicable Advertising
                 Revenues; and (iii) any Performance

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                 Revenue, including the basis for the calculation thereof
                 (including each New Customer, and the means by which such New
                 Customer was acquired (e.g., nature of transaction). AOL will
                 ensure that its use of the information obtained from Onvia
                 users by virtue of their use of the Co-Branded Site as
                 contemplated under the Agreement complies with the applicable
                 privacy policy on the Co-Branded Site, provided that AOL shall
                 have reasonable input as to the privacy policy applicable to
                 the Co-Branded Site.

          3.8.2  Usage Reports.  AOL shall provide Onvia with standard usage
                 -------------
                 information related to the Promotions (e.g. a schedule of the
                 Impressions delivered by AOL at such time) which is similar in
                 substance and form to the reports provided by AOL to other
                 interactive marketing partners similar to Onvia. Onvia
                 acknowledges that such information may be Confidential
                 Information as defined herein.

          3.8.3  Fraudulent Transactions.  To the extent permitted by applicable
                 -----------------------
                 laws, Onvia will provide AOL with monthly reports of all
                 fraudulent orders, including the date, screenname or email
                 address and amount associated with such order, following Onvia
                 obtaining knowledge that such orders are, in fact, fraudulent.

     3.9  Integration Revenue. During the Initial Term, AOL shall pay to Onvia
          -------------------
     [* * *] of the revenue received by it for integration of third parties into
     the AOL Buying Directory by Onvia to the extent received by AOL from its
     third party merchant partners for such integration into such directory by
     Onvia at AOL's request in accordance with Exhibit I hereof (and including
     only such portion of the total revenues from such third parties directly
     attributable to such integration as set forth in more detail in this
     Section 3.9) (the "Integration Revenue").  More specifically, the
     Integration Revenue shall consist only of all cash actually paid to (to the
     extent actually collected by) AOL by such third parties for integration
     into the AOL Buying Directory by Onvia, at such time as such cash is
     recognized as revenue attributable to such integration by AOL in accordance
     with applicable generally accepted account principles, less (i) actual
     third party commissions, (ii) AOL sales expenses not to exceed fifteen
     percent (15%) of such aggregate amount, (iii) all other amounts, fees and
     revenues received by AOL that are not attributed to third party integration
     into the AOL Buying Directory by Onvia, including without limitation,
     license fees, web design fees, fees for any other promotions by AOL of the
     same third party (e.g., unrelated carriage within the AOL Network other
     than in the AOL Buying Directory or for standard (non-integrated)
     promotional carriage in the traditional advertising space on the AOL Buying
     Directory), and revenues from software sales, and (iv) any amounts not
     collected by AOL and/or more than ninety (90) days past due.

4.   [Intentionally Omitted]

5.   TERM; RENEWAL; TERMINATION.
     --------------------------

     5.1.  Term.  Unless earlier terminated as set forth herein, the initial
           ----
           term of this Agreement will be twenty-four (24) months from and after
           the Effective Date (the "Initial Term").

     5.2.  Renewal.  (a) Upon conclusion of the Initial Term, AOL will have the
           -------
           right to renew the Agreement for a one-year renewal term (the
           "Renewal Term" and together with the Initial Term, the "Term"),
           provided that: (1) during such Renewal Term: (i) there shall be no
           Impressions Commitment, (ii) Onvia shall not be obligated to pay an
           additional carriage fee, (iii) AOL shall not be obligated to provide
           any promotions provided for hereunder (e.g., as set forth in Exhibit
           A hereto), (iv) AOL may, at its option, remove any links to, or
           promotion or mention of, the RFQ Services and/or RFI Services
           (including but not limited to the RFQ/RFI Promotional Area) from the
           AOL Network following the expiration of the Term, unless mutually
           agreeable terms for retaining such links and promotion can be agreed
           upon; and (v) Onvia shall pay AOL the greater of (x) [* * *] of all
           Transaction Margins arising from the sale of any products (e.g.,
           regardless of whether such products are

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           produced by Onvia or are provided to Onvia by a third party merchant)
           on the Co-Branded Site during the Renewal Term, but not services
           (unless mutually agreed), or (y) the most preferable rates offered
           under Onvia's then current affiliate program (in either case, payment
           must be made on a quarterly basis within forty-five (45) days
           following the end of the quarter in which the Transaction Margins
           were generated); and (2) if, during the final quarter of the Initial
           Term, Onvia consistently experiences substantial costs of maintaining
           and upgrading the Co-Branded Site and AOL Buying Directory due to the
           requirements of this Agreement, separate and apart from the costs
           incurred by Onvia in maintaining and upgrading the other Onvia
           Interactive Sites, the Parties will negotiate in good faith to arrive
           at renewal terms which reduce those costs (provided that if
           alternative renewal terms cannot be agreed upon, AOL shall have the
           right to renew this Agreement as otherwise set forth herein). The
           Renewal Term shall automatically commence following the expiration of
           the Initial Term (or prior Renewal Term, as the case may be),
           provided that AOL shall be entitled to terminate any such Renewal
           Term with thirty (30) days prior written notice to Onvia. The Parties
           may mutually agree to extend the Agreement for multiple additional
           Renewal Terms. (b) In addition to the foregoing, at least sixty (60)
           days before the end of the Initial Term, the Parties shall discuss in
           good faith the possibility of agreeing on an alternative Impressions
           Commitment, carriage plan, carriage fee, and related items which will
           control during the Renewal Term instead of the terms set forth in
           subpart (a)(1) above. (c) At the end of the Term when the AOL Buying
           Directory is to be no longer maintained by Onvia hereunder, there
           will be a reasonable transition period (the "Transition Period") of
           mutually agreeable duration (not to be less than ninety (90) days)
           during which the Parties' rights and obligations with respect to the
           AOL Buying Directory shall survive and during which such period the
           Parties will cooperate to facilitate the migration of AOL's third
           party merchant partners that have been integrated into the AOL Buying
           Directory, and AOL's AOL Buying Directory customers obtained during
           the Term, to a different tool selected by AOL.

     5.3.  Continued Links. Upon expiration of the Term, AOL may, at its
           ---------------
           discretion, continue to promote one or more "pointers" or links from
           the AOL Network to the Standard Site and continue to use Onvia's
           trade names, trade marks and service marks in connection therewith
           (collectively, a "Continued Link"). So long as AOL maintains a
           Continued Link, (a) Onvia shall pay AOL the most preferable rates
           offered under Onvia's then current affiliate program (within thirty
           (30) days of the end of each quarter during which the Continued Link
           is maintained), or if no such affiliate program is then in effect,
           Onvia shall pay AOL [* * *] of all Transaction Margins arising from
           the sale of any products (e.g., regardless of whether such products
           are produced by Onvia or are provided to Onvia by a third party
           merchant) on the Standard Site (on a quarterly basis within forty-
           five (45) days following the end of the quarter in which the
           Transaction Margins were generated); (b) Sections 3.5, 3.6 and 3.7
           along with the terms of Exhibit G hereto shall continue to apply with
           respect to the Continued Link and any transactions arising therefrom;
           (c) Onvia will continue to promote the Keyword Search Term provided
           to it hereunder in accordance with the requirements of this
           Agreement; and (d) all of AOL's rights with respect to the area on
           which the AOL Buying Directory resides shall continue as they existed
           during the Term.

     5.4.  Termination for Breach.  Except as expressly provided elsewhere in
           ----------------------
           this Agreement, either Party may terminate this Agreement at any time
           in the event of a material breach of the Agreement by the other Party
           which remains uncured after thirty (30) days written notice thereof
           to the other Party (or such shorter period as may be specified
           elsewhere in this Agreement); provided that AOL will not be required
           to provide notice to Onvia in connection with Onvia's failure to make
           any payment to AOL required hereunder, and the cure period with
           respect to any scheduled payment will be fifteen (15) days from the
           date for such payment provided for herein. Notwithstanding the
           foregoing, in the event of a material breach of a provision that
           expressly requires action to be completed within an express period
           shorter than 30 days, either Party may terminate this Agreement if
           the breach remains uncured after written notice thereof to the other
           Party. In the event of a

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           material breach of this Agreement by AOL, AOL may refund a pro rata
           percentage of the carriage fee paid by Onvia pursuant to Section 3.1
           hereof, to the extent that AOL has actually received such payments
           from Onvia and such payments remain unearned at the time of refund
           (i.e., a proportionate percentage of the Impressions Commitment has
           not yet been delivered).

     5.5.  Termination for Bankruptcy/Insolvency.  Either Party may terminate
           -------------------------------------
           this Agreement immediately following written notice to the other
           Party if the other Party (i) ceases to do business in the normal
           course, (ii) becomes or is declared insolvent or bankrupt, (iii) is
           the subject of any proceeding related to its liquidation or
           insolvency (whether voluntary or involuntary) which is not dismissed
           within ninety (90) calendar days or (iv) makes an assignment for the
           benefit of creditors.

     5.6.  Termination on Change of Control.
           --------------------------------
           (a)      (i) Onvia shall promptly notify AOL in writing in the event
           that Onvia enters into any agreement with any Interactive Service
           intending to consummate or to potentially consummate any Change of
           Control of Onvia or which could reasonably result in an Interactive
           Service controlling Onvia (other than a Qualifying Investor (as
           defined below)), notifying AOL of the existence of such agreement and
           the nature of the transaction contemplated thereby (subject to any
           applicable confidentiality provisions therein and any applicable
           securities laws) (and in any event, such notice shall occur no later
           than one (1) day following any press release or other public
           announcement thereof by Onvia). For purposes hereof, a "Qualifying
           Investor" shall mean any current investor in Onvia which is listed on
           Schedule 5.6 hereto, if and to the extent that either, (1) such
           investor is not an Interactive Service or (2) if such investor is an
           Interactive Service, at any time, then such investor only so
           qualifies because of a distinctly operating subsidiary of the same
           parent (each, a "Distinct Affiliate"), in which case, such investor
           shall be considered a Qualified Investor only if and to the extent
           that the Distinct Affiliate(s) which cause it to qualify as an
           Interactive Service are (and are planned in the foreseeable future by
           such investor to be) held and operated separately from the operations
           of Onvia as contemplated by this Agreement (in which case, neither
           Onvia nor such investor may cause or permit AOL User data or
           Confidential Information to be shared between Onvia and such other
           Distinct Affiliate). Such notice shall be referred to herein as the
           "Agreement Notice". In negotiating such an agreement, Onvia shall use
           commercially reasonable efforts to avoid confidentiality provisions
           which would restrict its ability to provide AOL with the Agreement
           Notice as described herein. However, if Onvia is restricted from
           providing such Agreement Notice immediately upon entering into such
           an agreement due to applicable confidentiality restrictions of such
           agreement or applicable securities laws, then Onvia shall notify AOL
           of the existence and nature of such agreement as soon as such
           restrictions no longer prevent it from doing so. (ii) Onvia also
           shall provide prompt written notice to AOL of the occurrence of the
           Change of Control (such notice to be referred to herein as the
           "Consummation Notice"). (iii) In the event that Onvia enters into an
           agreement with an Interactive Service as contemplated in this
           section, AOL shall have the right to terminate this Agreement on or
           after the date that is the earlier of (a) six (6) months after the
           date of the Agreement Notice, or (b) the date of the Change of
           Control; provided, however, that AOL must give Onvia thirty (30) days
           prior written notice of its intent to terminate.

           (b)      In the event of a Change of Control of AOL (other than the
           consummation, in any form, of AOL's planned acquisition of, or merger
           or consolidation with, Time Warner Inc., which was announced to the
           public on January 10, 2000), AOL may terminate this Agreement by
           providing sixty (60) days prior written notice of such intent to
           terminate.

     5.7.  Press Releases.  Each Party will submit to the other Party, for its
           ---------------
           prior written approval, which will not be unreasonably withheld or
           delayed, any press release or any other public

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           statement regarding the transactions contemplated hereunder ("Press
           Release"). The Parties shall obey all applicable securities laws
           (e.g., governing any applicable "quiet period" relating to any
           securities filings). Notwithstanding the foregoing, either Party may
           issue Press Releases and other disclosures as required by law without
           the consent of the other Party and in such event, the disclosing
           Party will provide at least three (3) business days prior written
           notice of such disclosure. The failure by one Party to obtain the
           prior written approval of the other Party prior to issuing a Press
           Release (except as required by law) shall be deemed a material breach
           of this Agreement. Because it would be difficult to precisely
           ascertain the extent of the injury caused to the non-breaching party,
           in the event of such material breach under this Section 5.7, the non-
           breach party may elect to either (a) terminate this Agreement
           immediately upon notice to the other Party, or (b) as liquidated
           damages, elect to modify the Impression commitment hereunder by
           fifteen percent (15%) (either an increase in Impressions if AOL has
           materially breached the Agreement or a decrease in Impressions if
           Onvia has materially breached the Agreement). The Parties agree that
           the liquidated damages set forth are a reasonable approximation of
           the injury that would be suffered by the non-breaching Party.

6.   NETSCAPE TOOLS, UTILITIES & PROGRAMMING.
     ---------------------------------------

     6.1.  Netscape Business Directory.  Onvia will make commercially reasonable
           ---------------------------
           efforts to integrate the Netscape Business Directory into
           contextually relevant areas of its Standard Site. Onvia's business
           users shall have access to and use of the Netscape Business Directory
           (subject to all generally applicable terms thereof, as available
           online). If mutually agreed, Onvia and its business users integrated
           into the Netscape Business Directory will qualify for specific
           Netscape "members only" reduced-price and/or enhanced value products
           and services. In addition, if mutually agreed, Onvia business users
           will be able to search for and find buyers and sellers and to
           leverage Netscape generally available value-added business-to-
           business e-commerce hosted services such as auctions, catalog buying,
           and bid-quote. Onvia understands and agrees that the Netscape
           Business Directory product may be structured by AOL to be provided by
           Netscape or by a third party, and that, if provided by a third party,
           AOL shall not be required to force such third party to accept the
           terms of this Section 6.1, and Onvia may not be able to so
           participate.

     6.2.  Netscape Business Card.  Onvia will evaluate in good faith whether
           ----------------------
           it will agree to its integration into a co-branded Netscape Business
           Card (with any such integration to be subject to all generally
           applicable terms thereof), enabling Onvia to provide specific photos
           and programming related to its products and services and leverage
           Netscape generally available value-added business-to-business e-
           commerce services. If mutually agreed, Onvia and Netscape will use
           good faith efforts to enable Onvia to customize content and
           programming into a Netscape Business Card. If mutually agreed, Onvia
           will offer to its partners and users accessing Onvia's generally
           available web sites, the opportunity to be integrated into a co-
           branded Netscape Business Card (subject to all generally applicable
           terms thereof).

     6.3.  Netscape Programming.  Netscape will provide Onvia with content and
           --------------------
           programming targeted at its business users through co-branded areas.
           Onvia will use commercially reasonable efforts to integrate
           Netscape's content and programming in contextually relevant areas of
           the Onvia web based applications, and to provide navigational links
           within contextually relevant areas of the Onvia web based
           applications to the co-branded areas containing the Netscape
           programming. The Parties will mutually agree upon the nature of
           Netscape content and programming to be integrated on the Onvia web
           based applications and the carriage/integration plan for such content
           and programming. Any and all such programming shall appear only in
           the Co-Branded Site or, if on the Standard Site, then only on a co-
           branded screen or screens thereof (a "Co-Branded Area of the Standard
           Site") upon terms to be mutually agreed.

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     6.4.  AOL Buying Directory.  Onvia will build, operate and provide to AOL a
           --------------------
           best-of-breed, ingredient-branded buying directory in a manner set
           forth herein (including without limitation in this Section 6.4,
           Exhibit A-1 and Exhibit I) (the "AOL Buying Directory").

           6.4.1.  Clickstream.  Subject to AOL's right to redesign (or modify,
                   -----------
                   etc.) elements of the AOL Network pursuant to Section 1.1
                   hereof, the AOL Buying Directory will be linked to as
                   follows: (i) the [* * *] page (or substantively similar area)
                   within Netcenter (initially, and later within the [* * *]),
                   will contain an [* * *] link to, among other areas, a
                   Netcenter [* * *] area (or substantively similar area); (ii)
                   which will contain [* * *] links to, among other areas, the
                   AOL Buying Directory, and the AOL Aggregated RFQ Area; (iii)
                   with respect to the AOL Buying Directory, the directory
                   products and services categories space shall be approximately
                   [* * *] of the programmable page, with [* * *] placement;
                   (iv) with respect to the AOL Aggregated RFQ Area page, Onvia
                   shall have, on the [* * *] of the page, a total of [* * *] of
                   the aggregate available partner page real estate (including
                   an area constituting [* * *] of the area above the fold and
                   an area constituting [* * *] of the area below the fold), to
                   provide its RFQ/RFI Promotional Area in accordance herewith,
                   with the exact placement on such page to be mutually agreed;
                   (v) with respect to the AOL Buying Directory sub-category
                   page, to the extent such page is deemed advisable by AOL, the
                   sub-categories space shall be up to [* * *] of the
                   programmable page, with [* * *] placement; (vi) the results
                   page of the AOL Buying Directory shall contain an [* * *]
                   link to the RFQ Services on the Co-Branded Site; (vii) for [*
                   * *] from and after the date on which the Co-Branded Site
                   first launches, there shall be [* * *] on the [* * *] to the
                   [* * *] and [* * *] to the [* * *] (and prior to launch of
                   such areas, AOL shall instead link directly to the relevant
                   portion of the [* * *]); and (viii) with respect to the AOL
                   Buying Directory search results page, the search results
                   space shall be approximately [* * *] of the programmable
                   page, and at least one Onvia search result shall be placed [*
                   * *] (no [* * *] than other general [* * *] merchant partner
                   search results (standard page type size, font, etc. to be
                   determined by AOL)) (subject to Onvia's having a directly
                   relevant product); AOL controls the order of the search
                   results, but initially, the list of products or services
                   shall be sorted by the following criteria: default is by [* *
                   *], and/or by [* * *] (e.g., [* * *] to AOL), but could also
                   be sorted by, e.g., [* * *]; provided, AOL shall have the
                   right to (a) add up to [* * *] additional sort criteria and
                   (b) change the sort order up to [* * *] times during the
                   Term, unless otherwise agreed to by the Parties. Additional
                   links also may be integrated throughout the [* * *] (or a
                   comparable area if the [* * *] is not launched).
                   Notwithstanding anything to the contrary herein, any
                   reference in this Agreement to placement on any search and/or
                   results page or area shall in each case be subject to
                   qualification under the parameters of such search or result.

           6.4.2.  Management; Operations.  The AOL Buying Directory will
                   ----------------------
                   enable AOL Users to search across Onvia's inventory of
                   products and services along with such other third-party
                   inventory integrated into the AOL Buying Directory in
                   accordance Exhibit A-1 and Exhibit I hereto. AOL will have
                   design approval rights for user interface and display
                   elements of the AOL Buying Directory and results pages (e.g.,
                   the manner in which results pages will list AOL third party
                   partner inventory as well as Onvia inventory). As long as
                   Onvia's products and services are directly relevant to the
                   queried item or service, AOL will list at least one of
                   Onvia's products or services [* * *] on the first results
                   page. Upon AOL's request, Onvia will integrate into the AOL
                   Buying Directory (including without limitation the results
                   pages thereof), third-party services and products, in a
                   manner specified by AOL and in accordance with the schedule
                   set forth in Exhibit A-1 and Exhibit I hereto. The products
                   and services of Onvia to be integrated into the AOL Buying
                   Directory are limited to the categories of products and
                   services set forth in Exhibit

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                  D hereto but shall include a comprehensive offering of such
                  categories as set forth on Exhibit A-1. Although the AOL
                  Buying Directory may reside within the AOL Network rather than
                  the Co-Branded Site, all express obligations, representations
                  and warranties of Onvia herein with respect to the Co-Branded
                  Site (e.g., management, quality, competitiveness, etc.), shall
                  apply equally with respect to the AOL Buying Directory (except
                  as otherwise expressly set forth in this Section 6.4).
                  Notwithstanding anything to the contrary, AOL owns, operates
                  and controls all areas on which the AOL Buying Directory
                  resides, including the Advertising inventory therein; provided
                  that Onvia retains any existing ownership of (i) any
                  proprietary underlying technology related to the AOL Buying
                  Guide as provided by Onvia to AOL, and (ii) the Co-Branded
                  Site Buying Directory (defined below), subject to the terms
                  hereof. In addition to the other operational requirements of
                  this Agreement, Onvia shall ensure that the AOL Buying
                  Directory performs searches and displays results at least as
                  quickly as the buying directory then-currently available on
                  the Standard Site. Such results shall be displayed in a manner
                  designated by AOL from time to time, which may include two
                  columns. If and when (in AOL's discretion) AOL launches the
                  B2B Area, then Onvia shall promptly make the AOL Buying
                  Directory available to AOL for integration therein as set
                  forth in Exhibits A-1 and I, and Onvia shall cooperate with
                  AOL to assist in such integration.

          6.4.3.  Co-Branded Site Buying Directory.  In addition to the AOL
                  --------------------------------
                  Buying Directory (which shall incorporate certain AOL merchant
                  partners and be located within the AOL Network, to the extent
                  set forth herein, including as set forth in Exhibits A-1 and
                  I), Onvia shall also provide and operate the same (or a
                  substantially similar version of the same) or substantially
                  similar buying directory within the Co-Branded Site (subject
                  to all requirements applicable to the Co-Branded Site,
                  including without limitation, co-branding thereof), which such
                  version of such directory may or may not also incorporate
                  AOL's merchant partners therein as required for the AOL Buying
                  Directory (the "Co-Branded Site Buying Directory").

          6.4.4.  [* * *] Buying Directory.  Subject to Onvia's continued
                  ------------------------
                  compliance with the terms hereof (including without limitation
                  by supplying a consistently "best-of-breed" buying directory
                  product and satisfying other performance requirements in
                  compliance with the terms of Exhibit A-1, E and J as to the
                  AOL Buying Directory), AOL shall not [* * *] buying directory
                  as the [* * *] buying directory in the [* * *] during the [* *
                  *]. Notwithstanding anything to the contrary herein, AOL may,
                  even within the [* * *], (i) sell Advertisements to, and
                  otherwise promote, any providers of similar directories, (ii)
                  promote any [* * *] related buying guides and any [* * *]
                  buying guide, and (iii) promote any [* * *] directory in any
                  [* * *] communities (e.g., a [* * *] industry [* * *]
                  directory or an [* * *] industry [* * *] directory) in the [*
                  * *] (even if such [* * *] directory includes traditional [* *
                  *] products (e.g., a printer, even if sold within a [* * *]
                  industry [* * *] directory)).

     6.5  RFQ Services and RFI Services.   Onvia will build, operate and provide
          -----------------------------
          to AOL best-of-breed areas for the RFQ Services and RFI Services in a
          manner set forth herein, to be operated via the Co-Branded Site, but
          promoted via links and related promotional and/or explanatory content
          in the AOL Network (such promotional areas, linking to such services
          in the Co-Branded Site, the "RFQ/RFI Promotional Areas"), for AOL to
          incorporate non-exclusively into the AOL Network (including without
          limitation in any B2B Area (including without limitation in any AOL
          owned and operated RFQ and RFI area(s) programmed by AOL in its
          discretion) aggregating third party RFQ and/or RFI partners of AOL)
          (the "AOL Aggregated RFQ Area")).  AOL will have design approval
          rights for user interface and display elements of the entire AOL
          Aggregated RFQ Area, including without limitation in the RFQ/RFI
          Promotional Areas.  Although the RFQ/RFI Promotional Areas may reside

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                                                                  Execution Copy

          within the AOL Network rather than the Co-Branded Site, all express
          obligations, representations and warranties of Onvia herein with
          respect to the Co-Branded Site (e.g., management, quality,
          competitiveness, etc.) shall apply equally with respect to the RFQ/RFI
          Promotional Areas (except as otherwise expressly set forth in this
          Section 6.5).  In addition to the other operational requirements of
          this Agreement, Onvia shall ensure that the RFQ/RFI Promotional Areas
          perform at least as quickly as the comparable areas then-currently
          available on the Standard Site and such results are displayed in a
          manner reasonably designated by AOL from time to time.  If and when
          AOL launches the B2B Area, then Onvia shall promptly make the RFQ/RFI
          Promotional Areas available to AOL for integration therein as set
          forth on Exhibits A-1 and I, and Onvia shall cooperate with AOL to
          assist in such integration.  Onvia will provide data for AOL's then-
          standard API (e.g., an HTTP application interface which accepts as
          input the user's screenname and returns the following data items in
          XML encoded form:  user ID, RFQ (or RFI) number, number of bids, low
          bid, high bid, and any other applicable information) within the
          RFQ/RFI Promotional Area, with Onvia's consent (not to be unreasonably
          withheld or delayed), and any other mutually agreeable location.

7.   MANAGEMENT COMMITTEE/ARBITRATION.
     --------------------------------

     7.1. Management Committee.  The Parties will act in good faith and use
          ---------------------
          commercially reasonable efforts to promptly resolve any claim,
          dispute, claim, controversy or disagreement (each a "Dispute") between
          the Parties or any of their respective subsidiaries, affiliates,
          successors and assigns under or related to this Agreement or any
          document executed pursuant to this Agreement or any of the
          transactions contemplated hereby. If the Parties cannot resolve the
          Dispute within such time frame, the Dispute will be submitted to the
          Management Committee for resolution. For ten (10) days following
          submission of the Dispute to the Management Committee, the Management
          Committee will have the exclusive right to resolve such Dispute;
          provided further that the Management Committee will have the final and
          exclusive right to resolve Disputes arising from any provision of the
          Agreement which expressly or implicitly provides for the Parties to
          reach mutual agreement as to certain terms. If the Management
          Committee is unable to amicably resolve the Dispute during the ten-day
          period, then the Management Committee will consider in good faith the
          possibility of retaining a third party mediator to facilitate
          resolution of the Dispute. In the event the Management Committee
          elects not to retain a mediator, the dispute will be subject to the
          resolution mechanisms described below. "Management Committee" will
          mean a committee made up of a senior executive from each of the
          Parties for the purpose of resolving Disputes under this Section 7 and
          generally overseeing the relationship between the Parties contemplated
          by this Agreement. Neither Party will seek, nor will be entitled to
          seek, binding outside resolution of the Dispute unless and until the
          Parties have been unable amicably to resolve the Dispute as set forth
          in this Section 7 and then, only in compliance with the procedures set
          forth in this Section 7.

     7.2. Arbitration.  Except for Disputes relating to issues of (i)
          ------------
          proprietary rights, including but not limited to intellectual property
          and confidentiality, and (ii) any provision of the Agreement which
          expressly or implicitly provides for the Parties to reach mutual
          agreement as to certain terms (which will be resolved by the Parties
          solely and exclusively through amicable resolution as set forth in
          Section 7.1), any Dispute not resolved by amicable resolution as set
          forth in Section 7.1 will be governed exclusively and finally by
          arbitration. Such arbitration will be conducted by the American
          Arbitration Association ("AAA") in Washington, D.C. and will be
          initiated and conducted in accordance with the Commercial Arbitration
          Rules ("Commercial Rules") of the AAA, including the AAA Supplementary
          Procedures for Large Complex Commercial Disputes ("Complex
          Procedures"), as such rules will be in effect on the date of delivery
          of a demand for arbitration ("Demand"), except to the extent that such
          rules are inconsistent with the provisions set forth herein.
          Notwithstanding the foregoing, the Parties may agree in good faith
          that the Complex

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          Procedures will not apply in order to promote the efficient
          arbitration of Disputes where the nature of the Dispute, including
          without limitation the amount in controversy, does not justify the
          application of such procedures.

     7.3. Selection of Arbitrators.  The arbitration panel will consist of three
          -------------------------
          arbitrators.  Each Party will name an arbitrator within ten (10) days
          after the delivery of the Demand. The two arbitrators named by the
          Parties may have prior relationships with the naming Party, which in a
          judicial setting would be considered a conflict of interest. The third
          arbitrator, selected by the first two, should be a neutral
          participant, with no prior working relationship with either Party. If
          the two arbitrators are unable to select a third arbitrator within ten
          (10) days, a third neutral arbitrator will be appointed by the AAA
          from the panel of commercial arbitrators of any of the AAA Large and
          Complex Resolution Programs. If a vacancy in the arbitration panel
          occurs after the hearings have commenced, the remaining arbitrator or
          arbitrators may not continue with the hearing and determination of the
          controversy, unless the Parties agree otherwise.

     7.4. Governing Law.  The Federal Arbitration Act, 9 U.S.C. Secs. 1-16, and
          --------------
          not state law, will govern the arbitrability of all Disputes. The
          arbitrators will allow such discovery as is appropriate to the
          purposes of arbitration in accomplishing a fair, speedy and cost-
          effective resolution of the Disputes. The arbitrators will reference
          the Federal Rules of Civil Procedure then in effect in setting the
          scope and timing of discovery. The Federal Rules of Evidence will
          apply in toto. The arbitrators may enter a default decision against
          any Party who fails to participate in the arbitration proceedings.

     7.5. Arbitration Awards.  The arbitrators will have the authority to award
          -------------------
          compensatory damages only.  Any award by the arbitrators will be
          accompanied by a written opinion setting forth the findings of fact
          and conclusions of law relied upon in reaching the decision. The award
          rendered by the arbitrators will be final, binding and non-appealable,
          and judgment upon such award may be entered by any court of competent
          jurisdiction. The Parties agree that the existence, conduct and
          content of any arbitration will be kept confidential and no Party will
          disclose to any person any information about such arbitration, except
          as may be required by law or by any governmental authority or for
          financial reporting purposes in each Party's financial statements.

     7.6. Fees.  Each Party will pay the fees of its own attorneys, expenses of
          ----
          witnesses and all other expenses and costs in connection with the
          presentation of such Party's case (collectively, "Attorneys' Fees").
          The remaining costs of the arbitration, including without limitation,
          fees of the arbitrators, costs of records or transcripts and
          administrative fees (collectively, "Arbitration Costs") will be borne
          equally by the Parties. Notwithstanding the foregoing, the arbitrators
          may modify the allocation of Arbitration Costs and award reasonable
          Attorneys' Fees in those cases where fairness dictates a different
          allocation of Arbitration Costs between the Parties and an award of
          reasonable Attorneys' Fees to the prevailing Party as determined by
          the arbitrators.

     7.7. Non Arbitratable Disputes.  Any Dispute that is not subject to final
          --------------------------
          resolution by the Management Committee or to arbitration under this
          Section 7 or by law (collectively, "Non-Arbitration Claims") will be
          brought in a court of competent jurisdiction in the Commonwealth of
          Virginia. Each Party irrevocably consents to the exclusive
          jurisdiction of the courts of the Commonwealth of Virginia and the
          federal courts situated in the Commonwealth of Virginia, over any and
          all Non-Arbitration Claims and any and all actions to enforce such
          claims or to recover damages or other relief in connection with such
          claims.

8.   iPLANET.  Netscape and Onvia will use good faith efforts to evaluate a
     -------
     relationship with iPlanet for transaction and commerce related applications
     and enterprise software on terms to be mutually agreed upon by the Parties.
     The Parties will use good faith efforts to develop a

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                                                                  Execution Copy

     specifications requirements document. Netscape will dedicate sufficient
     resources to develop and customize such a solution in accordance with the
     terms hereof.

9.   MISCELLANEOUS.  Onvia will approach AOL and allow AOL to commence timely,
     -------------
     meaningful, mutual discussions regarding the opportunity for AOL to
     participate in future small business, SOHO, vertical trading community
     activities provided by Onvia, including, without limitation, access,
     vertical trading community platforms, and trading systems, before having
     extensive discussions or entering into agreements or commitments with any
     Interactive Service other than AOL regarding the same. If Onvia approaches
     AOL regarding the possibility of a reasonably potential business
     relationship with respect to a new business-to-business product or service
     to be offered by AOL on the AOL Network, AOL will use good faith efforts to
     discuss the possibility of such a relationship with Onvia.

10.  STANDARD TERMS.  The Standard Online Commerce Terms & Conditions set forth
     --------------
     on Exhibit F attached hereto and Standard Legal Terms & Conditions set
     forth on Exhibit G attached hereto are each hereby made a part of this
     Agreement.

                           [SIGNATURE PAGE FOLLOWS]

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                                                                  Execution Copy

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
Effective Date.

AMERICA ONLINE, INC.                        ONVIA.COM, INC.

By: /s/                                     By: /s/
    -------------------------------             -------------------------------
Name                                        Name:
Title:                                      Title:

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<PAGE>

                                                                  Execution Copy

                                   EXHIBIT A
                              Placement/Promotion
                              -------------------

I.   Carriage Plan

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
              AREA                                              DESCRIPTION

-----------------------------------------------------------------------------------------------------
<S>           <C>                                               <C>
              Level 1 Promotions                                [* * *] Impressions
-----------------------------------------------------------------------------------------------------
      1       Netscape Netcenter - Business/Business            Rotational Banners
              Toolkit Articles
-----------------------------------------------------------------------------------------------------
      2       Netscape Netcenter - Business/Business            Rotational Banners
              Toolkit Articles
-----------------------------------------------------------------------------------------------------
      3       Netscape Netcenter - Business /Small              Rotational Banners and text links
              Business - Main
-----------------------------------------------------------------------------------------------------
      4       Netscape Netcenter - Small Business               Rotational Banners
              /Office Supplies - Sponsorship
-----------------------------------------------------------------------------------------------------
      5       Netscape Netcenter - Business/Business -          Rotational Text
              Daily News
-----------------------------------------------------------------------------------------------------
      6       Netscape Netcenter - Web Site Garage Tune         Rotational Banners
              - Up
-----------------------------------------------------------------------------------------------------
      7       Netscape Netcenter - Business/E Business:         Rotational Banners
              Online Essentials Step 5 (improve your
              site) Sponsorship
-----------------------------------------------------------------------------------------------------
      8       Netscape Netcenter - Site Central -               Rotational Text
              Business
-----------------------------------------------------------------------------------------------------
      9       AOL Service - Business News Center                Rotational Banners
-----------------------------------------------------------------------------------------------------
     10       AOL Service - Industry - Computers &              Rotational Banners
              Technology
-----------------------------------------------------------------------------------------------------
     11       AOL Service - AOL Workplace                       Rotational Banners
-----------------------------------------------------------------------------------------------------
     12       AOL.com - Business & Careers/ Office              Rotational Banners
              Supplies Directory
-----------------------------------------------------------------------------------------------------
     13       CompuServe - Business/Business - Main             Rotational Banners
-----------------------------------------------------------------------------------------------------
     14       CompuServe - Business/Forum - Business            Rotational Banners
-----------------------------------------------------------------------------------------------------
      3       Cross Brands - Classifieds Plus - AOL.com         Rotational Banners
              - Business Services
-----------------------------------------------------------------------------------------------------
      4       Cross Brands - Search 2000: Business Main         Rotational Banners
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
</TABLE>

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                                                                  Execution Copy

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
              Level 2 Promotions                                [* * *] Impressions
-----------------------------------------------------------------------------------------------------
<S>           <C>                                               <C>
      1       Netscape Netcenter - Tech/Computing - Run         Rotational Banner and text links
              of Netscape Channel
-----------------------------------------------------------------------------------------------------
      2       Netscape Netcenter - Tech/Computing -             Rotational Banners
              Computing - Smart Update
-----------------------------------------------------------------------------------------------------
      3       Netscape Netcenter - Tech/Computing - Run         Rotational Banners and text links
              of Computing and Internet
-----------------------------------------------------------------------------------------------------
      4       Netscape Netcenter - Site Central                 Rotational Banners
              Business - Run of Site Central: Computing
-----------------------------------------------------------------------------------------------------
      5       Netscape Netcenter - Tech/Computing -             Rotational Banners
              DevEdge sponsorship
-----------------------------------------------------------------------------------------------------
      6       AOL Service - Business/Business Newswire          Rotational Banners
              Press Release
-----------------------------------------------------------------------------------------------------
      7       AOL Service - Business Newswire Press             Rotational Banners
              Release
-----------------------------------------------------------------------------------------------------
      8       AOL Service - Business News / News Feeds          Rotational Banners
-----------------------------------------------------------------------------------------------------
      9       AOL Service - Business/Market Day Report          Rotational Banners
-----------------------------------------------------------------------------------------------------
     10       AOL Service - Business Week / Cover Story         Rotational Banners
-----------------------------------------------------------------------------------------------------
     11       AOL Service - Market Player Sponsorship/          Rotational Banners
              Market Player Button
-----------------------------------------------------------------------------------------------------
     12       AOL Service - Market Player Sponsorship/          Rotational Banners
              Market Player Badge
-----------------------------------------------------------------------------------------------------
     13       AOL Service - Computing/Search & Explore          Rotational Banners
              AOL Computing Permanent Sponsorship
-----------------------------------------------------------------------------------------------------
     14       AOL Service - Computing/ Run of Computing         Rotational Banners
-----------------------------------------------------------------------------------------------------
     15       AOL.com - Business & Careers/ Yellow              Rotational Banners
              Pages - Computers/Software
-----------------------------------------------------------------------------------------------------
     16       CompuServe - Business/Forum - Computing           Rotational Banners
              Support
-----------------------------------------------------------------------------------------------------
     17       CompuServe - Run of Computing                     Rotational Banners
-----------------------------------------------------------------------------------------------------
     18       [* * *]                                           Rotational Banners
-----------------------------------------------------------------------------------------------------
     19       [* * *]                                           Rotational Banners
-----------------------------------------------------------------------------------------------------
     20       [* * *]                                           Rotational Banners
-----------------------------------------------------------------------------------------------------
</TABLE>

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                                                                  Execution Copy

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
              Level 3 Promotions:                               [* * *] Impressions
-----------------------------------------------------------------------------------------------------
<S>           <C>                                               <C>
      1       Netscape Netcenter -  Run of Personal             Rotational Banners and Text links
              Finance
-----------------------------------------------------------------------------------------------------
      2       Netscape Netcenter - Site Central/Run of          Rotational Banners and Text links
              Site Central
-----------------------------------------------------------------------------------------------------
      3       AOL Service - Market Player                       Rotational Banners
              Sponsorship/Personal Finance Stock Quotes
-----------------------------------------------------------------------------------------------------
      4       AOL Service - Market Player                       Rotational Banners
              Sponsorship/Run of Personal Finance
-----------------------------------------------------------------------------------------------------
      5       AOL.com - Computing/Run of Computing              Rotational Banners
-----------------------------------------------------------------------------------------------------
      6       CompuServe  - Run of Personal Finance             Rotational Banners
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
              Level 4 Promotions:                               [* * *] Impressions
-----------------------------------------------------------------------------------------------------
      1       Netscape Netcenter - Homepage integration         Integrated Banner
-----------------------------------------------------------------------------------------------------
      2       Netscape Netcenter - Homepage                     Rotational Banners
-----------------------------------------------------------------------------------------------------
      3       AOL.com - Run of Yellow Pages                     Rotational Banners
-----------------------------------------------------------------------------------------------------
      4       [* * *]                                           Rotational Banners
-----------------------------------------------------------------------------------------------------
      5       Cross Brands - Run of Calendar                    Rotational Banners
-----------------------------------------------------------------------------------------------------
      6       Cross Brands - Run of Classifieds Plus            Rotational Banners
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
              Level 5 Promotions:                               [* * *] Impressions
-----------------------------------------------------------------------------------------------------
      1       Netscape Netcenter - Run of Service               Rotational Textlinks
              textlinks
-----------------------------------------------------------------------------------------------------
      2       AOL Service - Run of Service                      Rotational Banners
-----------------------------------------------------------------------------------------------------
      3       AOL Service - Run of Email in-box                 Rotational Banners
-----------------------------------------------------------------------------------------------------
      4       CompuServe - Run of Compuserve.com                Rotational Banners
-----------------------------------------------------------------------------------------------------
      5       CompuServe - Run of CompuServe
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
              Level 6 Promotions:                               [* * *] Impressions
-----------------------------------------------------------------------------------------------------
      1       [* * *]                                           Rotational Banners
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
</TABLE>

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                                                                  Execution Copy

                            Integrated Impressions:

<TABLE>
<CAPTION>
              Integrated Impressions per Section 3.4:           [* * *] Impressions (over 18 months)
-----------------------------------------------------------------------------------------------------
<S>           <C>                                               <C>
     1        AOL Buying Directory*                             Fixed Placement on [* * *] page as [* *
                                                                *] by [* * *]
-----------------------------------------------------------------------------------------------------
     2        AOL Aggregated RFQ Area*                          Fixed Placement
-----------------------------------------------------------------------------------------------------
</TABLE>

* Prior to launch of the AOL Buying Directory or the AOL Aggregated RFQ Area,
Impressions linking to the Co-Branded Site Buying Directory, or to the RFQ
Services or RFI Services within the Co-Branded Site, shall count as such
Integrated Impressions.

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<PAGE>

                                                                  Execution Copy

                              AOL Canada Carriage:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
              AREA                                              DESCRIPTION

----------------------------------------------------------------------------------------------------------
              Netscape.ca Promotions                            [* * *] Impressions
----------------------------------------------------------------------------------------------------------
<S>           <C>
     1        Netscape.ca - Founding Co-Sponsor: Small          Rotational Banners
              Business Channel
----------------------------------------------------------------------------------------------------------
     2        Netscape.ca - Small Business/Main page -          Permanent Placement
              Tip of the Day - Permanent placement
----------------------------------------------------------------------------------------------------------
     3        Netscape.ca - Small Business/Business             Rotational Banners
              Finance - Banner rotation
----------------------------------------------------------------------------------------------------------
     4        Netscape.ca - Small Business/ Best of             Rotational Banners
              E-commerce for small business - banner
              rotation
----------------------------------------------------------------------------------------------------------
     5        Netscape.ca - Homepage                            Rotational Banners & Text links
----------------------------------------------------------------------------------------------------------
     6        Netscape.ca - Smart Update                        Rotational Banners
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
              AOL.ca  Promotions                                [* * *] Impressions
----------------------------------------------------------------------------------------------------------
     1        AOL.ca - Homepage: Branded Button -               Permanent Placement
              Permanent Placement
----------------------------------------------------------------------------------------------------------
     2        AOL.ca/Onvia - Co-branded Small Business          Onvia creating separate linking URL for
              Channel -                                         AOL.ca  members that leads directly to
                                                                Oniva's Canadian content. This will be
                                                                linked to from AOL.ca homepage and
                                                                provide Onvia with permanent, integrated
                                                                placement.
----------------------------------------------------------------------------------------------------------
</TABLE>

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                                                                  Execution Copy

     Tier Exchange.  Except for any Promotions identified as permanent
     -------------
     placements (e.g., Anchor Tenancies), Onvia may elect to redistribute
     Promotions among the tier levels listed herein in accordance with the
     procedures set forth herein and AOL's then-current guidelines for re-
     allocating promotions.  The exchange value of a new Promotion (with respect
     to the number of Impressions received by Onvia for such new Promotion)
     shall be based upon AOL's then current rate card rate for such new
     Promotion in comparison to AOL's then-current rate card rate for the
     replaced Promotion.  All redistribution of Promotions shall be subject to
     availability (including without limitation, availability limited by AOL
     exclusivity and other preferential commitments) as reasonably determined by
     AOL.  Unless AOL otherwise consents in writing, in no event may Onvia:  (i)
     exchange Level 2, Level 3, Level 4 or Level 5 Impressions for Level 1 or
     Level 6 Impressions; (ii) exchange Impressions within the AOL Canada
     Carriage for other Impressions, or vice versa; or (iii) exchange Integrated
     Impressions for other Impressions, or vice versa.  Impressions may be
     exchanged in blocks of a minimum of [* * *] Impressions.  All exchanges of
     Promotions and Impressions shall be permitted only for Promotions or
     Impressions within the same AOL property (e.g., exchanges of Promotions
     within the AOL Service may be made only for other Promotions within the AOL
     Service).  Requests by Advertiser to redistribute Impressions may be placed
     no more frequently than twice per quarter, unless AOL otherwise agrees in
     writing.  No such request may be made until more than forty five (45) days
     have elapsed since the commercial launch of the Co-Branded Site in
     accordance with Section 2.1.  For any reallocation of Impressions between
     or among Levels which Onvia chooses to make pursuant hereto, Onvia agrees
     and acknowledges that the reallocated Impressions may be delivered
     differently than as originally described herein.

II.  During the Term, subject to the terms and conditions hereof, Onvia shall
     have the right to use the following Keyword Search Term on the AOL Service
     (and the "Go Word" on CompuServe): "Onvia", linking to the Co-Branded Site.

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                                                                  Execution Copy

                                  EXHIBIT A-1
      Products, Services, Programming, Applications and Integration Plan
      ------------------------------------------------------------------

A.   Programming.  Onvia shall deliver, update on a regular and consistent basis
     -----------
     (e.g., at least twice per day), and keep accurate and reasonably
     competitive, the following products, services, programming and other
     Content (the "Programming"), for use in the Co-Branded Site, or, upon AOL's
     reasonable request, for promotion (e.g., promotions of special offers (as
     described in Section 2.7) from time to time as determined by AOL) in whole
     or in part, in the AOL Network (including without limitation in the B2B
     Area), as determined by AOL in its reasonable discretion (except to the
     extent otherwise set forth herein):

     1.   Tools.  The best-of-breed (i) AOL Buying Directory, and (ii) RFQ/RFI
          -----
          Promotional Area (including the RFQ Services and RFI Services);

     2.   RFQ Service.  a comprehensive offering of RFQ Service products,
          -----------
          services, programming and other Content, including the following:
          Seller Activity, Seller Inbox Description, How to become a Seller, How
          the system works, Buyer Activity, View Buyer Inbox, Submit Quote
          Request, Billing Information, Shipping Information, Order Tracking,
          View Past Orders;

     3.   RFI Service.  a comprehensive offering of RFI Service products,
          -----------
          services, programming and other Content, including the following:
          Seller Activity, Seller Inbox Description, How to become a Seller, How
          the system works, Buyer Activity, View Buyer Inbox, Submit Quote
          Request, Billing Information, Order Tracking, View Past Orders;

     4.   Other B2B Products and Services. a comprehensive offering of
          -------------------------------
          additional small business or business-to-business targeted products,
          services, programming and other Content, including the following: The
          Onvia Community, Success Toolkit, Road To Success, Expert Advice,
          Forms, Worksheets, & How-To's, Networking, Finance, Marketing,
          Management, Human Resources, Office Technology, Legal, Training,
          Databank, Links, Databases, Cover Story, Charting small-business
          success in the new economy, Breaking News, Up-to-the-minute reporting
          of major business events, SOHO Corner, Small Business Today,
          Washington Wire, Quick Clicks, and any other products and services
          offered on the Standard Site as reasonably requested by AOL from time
          to time; and

     5.   AOL Buying Directory Listings. the following additional products,
          -----------------------------
          services, programming and other Content with respect to the AOL Buying
          Directory: Access to Onvia's approximately 25,000 business products,
          including computer hardware, software, office supplies, business
          machines, and best in class business services.

B.   The AOL Buying Directory.   The AOL Buying Directory (including without
     ------------------------
     limitation, the category page, any sub-category pages, any results pages,
     and any pages related thereto) shall reside within the AOL Network
     (including without limitation in the B2B Area), except as otherwise
     expressly set forth herein, and not in the Co-Branded Site.  Onvia shall
     use commercially reasonable efforts to build the AOL Buying Directory
     within ninety (90) days from and after the execution hereof (and in no
     event shall such period exceed one hundred twenty (120) days).  Until the
     AOL Buying Directory has been completed and is operational, including but
     not limited to the integration of AOL's third party merchant partners
     according to the schedule set forth herein, AOL may elect to link to the
     Co-Branded Site Buying Directory (or, if the Co-Branded Site Buying
     Directory is not completed and operational in accordance with the terms
     hereof, to the corresponding buying directory on the Standard Site, which
     shall appear to AOL Users with the branded headers and footers described in
     Section 2.1 hereof).  Onvia shall program the AOL Buying Directory such
     that, if a user of the AOL Buying Directory clicks on an AOL merchant

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     partner's result on a search results page, such user shall be linked
     directly to such AOL merchant partner's Interactive Site and the relevant
     product detail page therein.  The Parties expressly acknowledge and agree
     that, as set forth in further detail in Section 6.4 (and subject to Onvia's
     ownership rights expressly set forth in such Section 6.4), as between AOL
     and Onvia, AOL owns and controls the AOL Network (and all portions thereof,
     including without limitation the areas on which the AOL Buying Directory
     and the AOL Aggregated RFQ Area reside), and AOL shall have editorial
     discretion over the content on the AOL Buying Directory (including without
     limitation, the category page, any sub-category pages and any results
     pages) and shall own the advertising inventory therein.

     1.   Clickstream and Placement.  AOL and Onvia further agree that a
          -------------------------
          `clickstream' path to access the AOL Buying Directory or the AOL
          Aggregated RFQ Area shall be as set forth in Section 6.4 hereof.

     2.   Ingredient Branding.  The AOL Buying Directory shall be branded as AOL
          -------------------
          determines in its reasonable discretion (but may only include
          secondary "ingredient branding" of Onvia, which such secondary
          attribution may be significantly less prominent than AOL's primary
          branding (e.g. "AOL's Buying Directory -- powered by Onvia.com"),
          e.g., in a relative level of prominence similar to PersonaLogic's
          ingredient branding AOL Auto Center New Car Guide area or AOL Cats for
          Kids areas as of the Effective Date, as available at:

               http://www021.personalogic.aol.com/pl/system/pl.qanda?pl sid=c46q
               -----------------------------------------------------------------
               4sgv-1l31mwx-5480k&info=aol%2CSILVER%2Cautocenter&product=
               ----------------------------------------------------------
               cars%2Caol%2Cautocenter
               -----------------------

               or

               http://www025.personalogic.aol.com/pl/system/pl.qanda?pl sid=c46q
               -----------------------------------------------------------------
               6gv0-1l31mwy-60xlq&info=aol%2CSILVER%2Ckids&product=
               ----------------------------------------------------
               cats%2Caol%2Ckids
               -----------------

               respectively (and as also shown on the following pages).

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                                                                  Execution Copy

          [NOTE:  replace this page with print-out of following site]

http://www021.personalogic.aol.com/pl/system/pl.qanda?pl sid=c46q4sgv-1l31mwx-
-----------------------------------------------------------------------------
5480k&info=aol%2CSILVER%2Cautocenter&product=cars%2Caol%2Cautocenter
--------------------------------------------------------------------

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                                                                  Execution Copy

          [NOTE:  replace this page with print-out of following site]

http://www025.personalogic.aol.com/pl/system/pl.qanda?pl sid=c46q6gv0-1l31mwy-
-----------------------------------------------------------------------------
60xlq&info=aol%2CSILVER%2Ckids&product=cats%2Caol%2Ckids
--------------------------------------------------------

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                                                                  Execution Copy
                                   EXHIBIT B
                                  Definitions
                                  -----------

The following definitions will apply to this Agreement:

Additional Onvia Channel.  Any other distribution channel (e.g., an Interactive
------------------------
Service other than AOL) through which Onvia makes available an offering
comparable in nature to the Co-Branded Site.

Advertising Revenues.  Aggregate amounts collected by AOL or its agents, as the
--------------------
case may be, arising from the license or sale of Advertisements that appear
within the Co-Branded Site Advertising Inventory in accordance with Section 2.9
of this Agreement, less AOL's Advertising Sales Commissions.  Advertising
Revenues do not include amounts arising from Advertisements on any screens or
forms preceding, framing or otherwise directly associated with the Co-Branded
Site, which such screens and forms are owned and controlled exclusively by AOL.

Advertising Sales Commission.  (i) Actual amounts paid as commission to third
----------------------------
party agencies by either buyer or seller in connection with sale of the
Advertisement or (ii) [* * *], in the event the Party has sold the Advertisement
directly and will not be deducting any third party agency commissions.

Advertisements. (a) Any advertisements, links, pointers, sponsorships, buttons,
--------------
banners, navigation, or any other placements or promotions; or (b) any other
services or rights to the extent generally recognized and used as a medium for
advertisements (including without limitation `affiliate programs' or referral
sales), in each case, whether for a fixed placement fee or a bounty based on
sales.

AOL Aggregated RFQ Areas.  As defined in Section 6.5.
------------------------

AOL Buying Directory.  As defined in Section 6.4.
--------------------

AOL Canada.  The standard AOL Canada branded Canadian version of the AOL
----------
Service, which is optimized for narrow-band distribution, specifically excluding
(a) AOL.com, Netcenter or any other AOL Interactive Site, (b) the America Online
brand service and the international versions of the America Online service
(other than the Canadian version thereof) (e.g., AOL Japan), (c) the
CompuServe(R) brand service and any other CompuServe products or services (d)
"Driveway," "ICQ(TM)," "AOL NetFind(TM)," "AOL Instant Messenger(TM)," "Digital
City," "NetMail(TM)," "Electra," "Thrive," "Real Fans", "Love@AOL",
"Entertainment Asylum," "AOL Hometown," "My News" or any similar independent
product, service or property which may be offered by, through or with the
Canadian version of the America Online(R) brand service, (e) any programming or
Content area offered by or through the Canadian version of the America Online(R)
brand service over which AOL does not exercise complete operational control
(including, without limitation, Content areas controlled by other parties and
member-created Content areas), (f) any yellow pages, white pages, classifieds or
other search, directory or review services or Content offered by or through the
Canadian version of the America Online(R) brand service, and (g) any other
version of an America Online service which is materially different from the
standard narrow-band Canadian version of the America Online(R) brand service, by
virtue of its branding, distribution, functionality, Content or services,
including, without limitation, any co-branded version of the service or any
version distributed through any broadband distribution platform or through any
platform or device other than a desktop personal computer, provided, however,
that Onvia's rights herein, if any, in relation to any property, feature,
product or service which AOL or its affiliates may acquire subsequent to the
Effective Date and which then become part of AOL Canada, will be subject to
preexisting agreements to which AOL or any of its affiliates is bound as a
result of such acquisition

AOL Interactive Site.  Any Interactive Site which is managed, maintained, owned
--------------------
or controlled by AOL or its agents.

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AOL Look and Feel.  The elements of graphics, design, organization,
------------------
presentation, layout, user interface, navigation and stylistic convention
(including the digital implementations thereof) which are generally associated
with AOL Interactive Sites.

AOL Member.  Any authorized user of the AOL Service or CompuServe, including any
----------
sub-accounts using the AOL Service under an authorized master account.

AOL Network.  (i) The AOL Service, (ii) AOL.com, (iii) CompuServe, (iv) Digital
-----------
City, (v) Netcenter, (vi) the B2B Area, (vii) AOL Canada, and (viii) any other
product or service owned, operated, distributed or authorized to be distributed
by or through AOL or its affiliates worldwide (and including those properties
excluded from the definitions of the AOL Service or AOL.com), and including the
AOL Buying Directory and the AOL Aggregated RFQ Area (including the RFQ/RFI
Promotional Area therein), but excluding the Co-Branded Site (including the Co-
Branded Site Buying Directory).  It is understood and agreed that the rights of
Onvia relate only to the AOL properties to the extent expressly set forth herein
and not generally to the AOL Network.

AOL Purchaser.  Any person or entity who enters the Co-Branded Site from the AOL
-------------
Network including, without limitation, from any third party area therein (to the
extent entry from such third party area is traceable through both Parties'
commercially reasonable efforts), and generates Transaction Margins (regardless
of whether such person or entity provides an e-mail address during registration
or entrance to the Co-Branded Site which includes a domain other than an
"AOL.com" domain), and provided that any person or entity who has previously
satisfied the definition of AOL Purchaser will remain an AOL Purchaser, and any
subsequent purchases by such person or entity (e.g., as a result of e-mail
solicitations or any off-line means for receiving orders requiring purchasers to
reference a specific promotional identifier or tracking code) will also give
rise to Transaction Margins hereunder (and will not be conditioned on the person
or entity's satisfaction of clauses (i) or (ii) above).

AOL Service. The standard narrow-band U.S. version of the America Online brand
-----------
service, specifically excluding (a) AOL.com, Netcenter or any other AOL
Interactive Site, (b) the international versions of an America Online service
(e.g., AOL Japan), (c) the CompuServe(R) brand service and any other CompuServe
products or services (d) "Driveway," "ICQ(TM)," "AOL NetFind(TM)," "AOL Instant
Messenger(TM)," "Digital City," "NetMail(TM)," "Electra", "Thrive", "Real Fans",
"Love@AOL", "Entertainment Asylum," "AOL Hometown," "My News" or any similar
independent product, service or property which may be offered by, through or
with the U.S. version of the America Online(R) brand service, (e) any
programming or Content area offered by or through the U.S. version of the
America Online(R) brand service over which AOL does not exercise complete
operational control (including, without limitation, Content areas controlled by
other parties and member-created Content areas), (f) any yellow pages, white
pages, classifieds or other search, directory or review services or Content
offered by or through the U.S. version of the America Online(R) brand service,
and (g) any other version of an America Online service which is materially
different from the standard narrow-band U.S. version of the America Online brand
service, by virtue of its branding, distribution, functionality, Content or
services, including, without limitation, any co-branded version of the service
or any version distributed through any broadband distribution platform or
through any platform or device other than a desktop personal computer; provided,
however, that Onvia's rights herein, if any, in relation to any property,
feature, product or service which AOL or its affiliates may acquire subsequent
to the Effective Date and which then become part of the AOL Service, will be
subject to preexisting agreements to which AOL or any of its affiliates is bound
as a result of such acquisition.

AOL User.  Any user of the AOL Service, AOL.com, CompuServe, Digital City,
--------
Netcenter, or the AOL Network.

AOL.com.  AOL's primary Internet-based AOL Interactive Site marketed under the
-------
"AOL.COM(TM)" brand, specifically excluding (a) the AOL Service, (b) Netcenter,
(c) any international versions of such site, (d) "ICQ," "AOL NetFind(TM)," "AOL
Instant Messenger(TM)," "NetMail(TM)," "AOL Hometown," "My News" or any similar
independent product or service offered by or through such site or any other AOL
Interactive Site, (e) any programming or Content area offered by or through such
site over which AOL does not exercise

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complete operational control (including, without limitation, Content areas
controlled by other parties and member-created Content areas), (f) any
programming or Content area offered by or through such site which was operated,
maintained or controlled by the former AOL Studios division (e.g., Electra), (g)
any yellow pages, white pages, classifieds or other search, directory or review
services or Content offered by or through such site or any other AOL Interactive
Site, and (h) any other version of an AOL Interactive Site which is materially
different from AOL's primary Internet-based Interactive Site marketed under the
"AOL.COM(TM)" brand, by virtue of its branding, distribution, functionality,
Content or services, including, without limitation, any co-branded versions or
any version distributed through any broadband distribution platform or through
any platform or device other than a desktop personal computer; provided,
however, that Onvia's rights herein, if any, in relation to any property,
feature, product or service which AOL or its affiliates may acquire subsequent
to the Effective Date and which then become part of AOL.com, will be subject to
preexisting agreements to which AOL or any of its affiliates is bound as a
result of such acquisition.

B2B Area.  The targeted, special purpose, business-to-business area, owned and
--------
controlled by AOL (which may be linked to from other areas of the AOL Network in
AOL's sole discretion), and which is the area expected to initially be a sub-
channel within the Small Business channel of Netcenter (and, at a later point,
possibly may, at AOL's option, form the entirety of the content of the Small
Business channel or be made into a Netcenter channel separate from the Small
Business channel, or may be an independently [* * *] area).  The term "B2B Area"
specifically excludes:  (a) the AOL Service, (b) other areas within Netcenter,
(c) any international versions of such site, (d) "ICQ," "AOL NetFind(TM)," "AOL
Instant Messenger(TM)," "NetMail(TM)," "AOL Hometown," "My News" or any similar
independent product or service offered by or through such site or any other AOL
Interactive Site, (e) any programming or Content area offered by or through such
site over which AOL does not exercise complete operational control (including,
without limitation, Content areas controlled by other parties and member-created
Content areas), (f) any programming or Content area offered by or through such
site which was operated, maintained or controlled by the former AOL Studios
division (e.g., Electra), (g) any yellow pages, white pages, classifieds or
other search, directory or review services or Content offered by or through such
site or any other AOL Interactive Site, and (h) any other version of an AOL
Interactive Site which is materially different from AOL's primary Internet-based
Interactive Site marketed under the "AOL.COM(TM)" brand, by virtue of its
branding, distribution, functionality, Content or services, including, without
limitation, any co-branded versions or any version distributed through any
broadband distribution platform or through any platform or device other than a
desktop personal computer; provided, however, that Onvia's rights herein, if
any, in relation to any property, feature, product or service which AOL or its
affiliates may acquire subsequent to the Effective Date and which then become
part of the B2B Area, will be subject to preexisting agreements to which AOL or
any of its affiliates is bound as a result of such acquisition.

Co-Branded Site.  The specific customized area or web site to be promoted and
---------------
distributed by AOL hereunder through which Onvia will market and complete
transactions regarding its Products or services, as more fully described in
Section 2.

Co-Branded Site Advertising Inventory.   Traditional advertising space
-------------------------------------
(including standard banners, buttons, text links, pointers, and sponsorships) in
the Co-Branded Site (including in the Co-Branded Site Buying Directory).  Co-
Branded Site Advertising Inventory expressly excludes (i) any fully integrated
promotions (e.g., not banners or buttons), and (ii) any promotions for Onvia's
merchant partners which link to other areas within the Co-Branded Site (rather
than to a third party site) (e.g., where Onvia grants "premiere" status to
certain merchants).  Co-Branded Site Advertising Inventory also shall be deemed
to exclude any and all advertising inventory on the AOL Network (which such
inventory is owned by AOL), including without limitation the B2B Area, AOL
Buying Directory (including the category pages, subcategory pages, and results
pages therein), and the AOL Aggregated RFQ Area (including the RFQ/RFI
Promotional Area).

Co-Branded Site Buying Directory.  As defined in Section 6.4.
--------------------------------

Change of Control.  (a) The consummation of a reorganization, merger,
-----------------
consolidation, sale or other disposition of substantially all of the assets of a
party (other than for the sole purpose of changing the

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party's jurisdiction of incorporation) or (b) the acquisition by any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Securities Exchange Act of 1933, as amended) of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under such Act) of more than 50%
of either (i) the then outstanding shares of common stock of such party; or (ii)
the combined voting power of the then outstanding voting securities of such
party entitled to vote generally in the election of directors.

CompuServe.  The standard, narrow-band U.S. version of the CompuServe brand
-----------
service, specifically excluding (a) any international versions of such service,
(b) any web-based service including "compuserve.com", "cserve.com" and "cs.com",
or any similar product or service offered by or through the U.S. version of the
CompuServe brand service, (c) Content areas owned, maintained or controlled by
CompuServe affiliates or any similar "sub-service," (d) any programming or
Content area offered by or through the U.S. version of the CompuServe brand
service over which CompuServe does not exercise complete or substantially
complete operational control (e.g., third-party Content areas), (e) any yellow
pages, white pages, classifieds or other search, directory or review services or
Content and (f) any co-branded or private label branded version of the U.S.
version of the CompuServe brand service, and (g) any version of the U.S. version
of the CompuServe brand service which offers Content, distribution, services
and/or functionality materially different from the Content, distribution,
services and/or functionality associated with the standard, narrow-band U.S.
version of the CompuServe brand service, including, without limitation, any
version of such service distributed through any platform or device other than a
desktop personal computer; provided, however, that Onvia's rights  herein, if
any, in relation to any property, feature, product or service which AOL or its
affiliates may acquire subsequent to the Effective Date and which then become
part of CompuServe, will be subject to preexisting agreements to which AOL or
any of its affiliates is bound as a result of such acquisition.

Confidential Information.  Any information relating to or disclosed in the
------------------------
course of the Agreement, which is or should be reasonably understood to be
confidential or proprietary to the disclosing Party, including, but not limited
to, the material terms of this Agreement, information about AOL Members, AOL
Users, AOL Purchasers and Onvia users, technical processes and formulas, source
codes, product designs, sales, cost and other unpublished financial information,
product and business plans, projections, and marketing data.  "Confidential
Information" will not include information (a) already lawfully known to or
independently developed by the receiving Party, (b) disclosed in published
materials consistent with this Agreement, (c) generally known to the public, or
(d) lawfully obtained from any third party.

Content.  Text, images, video, audio (including, without limitation, music used
-------
in synchronism or timed relation with visual displays) and other data, products,
services, advertisements, promotions, URLs, links, pointers and software,
including any modifications, upgrades, updates, enhancements and related
documentation.

Digital City.   The standard, narrow-band U.S. version of Digital City's local
-------------
content offerings marketed under the Digital City(R) brand name, specifically
excluding (a) the AOL Service, AOL.com, Netcenter, or any other AOL Interactive
Site, (b) any international versions of such local content offerings, (c) the
CompuServe(R) brand service and any other CompuServe products or services (d)
"Driveway," "ICQ(TM)," "AOL NetFind(TM)," "AOL Instant Messenger(TM)," "Digital
City," "NetMail(TM)," "Electra", "Thrive", "Real Fans", "Love@AOL",
"Entertainment Asylum," "AOL Hometown," "My News" or any similar independent
product, service or property which may be offered by, through or with the
standard narrow band version of Digital City's local content offerings, (e) any
programming or Content area offered by or through such local content offerings
over which AOL does not exercise complete operational control (including,
without limitation, Content areas controlled by other parties and member-created
Content areas), (f) any yellow pages, white pages, classifieds or other search,
directory or review services or Content offered by or through such local content
offerings, (g) any other version of a Digital City local content offering which
is materially different from the narrow-band U.S. version of Digital City's
local content offerings marketed under the Digital City(R) brand name, by virtue
of its branding, distribution, functionality, Content or services, including,
without limitation, any co-branded version of the offerings or any version
distributed through any broadband distribution platform or through any platform
or device other than a desktop personal computer, and (i) Digital City- branded
offerings in any local area where such offerings are not owned or operationally
controlled by America Online, Inc. or DCI (e.g., Chicago, Orlando, South
Florida,

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                                                                  Execution Copy

and Hampton Roads); provided, however, that Onvia's rights herein, if any, in
relation to any property, feature, product or service which AOL or its
affiliates may acquire subsequent to the Effective Date and which then become
part of Digital City, will be subject to preexisting agreements to which AOL or
any of its affiliates is bound as a result of such acquisition.

Impression.  User exposure to the applicable Promotion, as such exposure may be
----------
reasonably determined and measured by AOL in accordance with its standard
methodologies and protocols.

Interactive Service.  An entity, other than Onvia (subject to the product and
-------------------
services restrictions in this Agreement), which is or offers one or more of the
following: (i) online or Internet connectivity services (e.g., an Internet
service provider ("ISP")); (ii) any Portal; and (iii) communications software
capable of serving as the principal means through which a user creates, sends
and receives electronic mail or real time online messages; provided, however,
that an entity otherwise satisfying one or more of these criteria shall not be
considered an Interactive Service if and to the extent that major divisions or
subsidiaries of such entity offer products and services which, if offered by an
unrelated entity, would not make such entity an Interactive Service (e.g., an
entity which offers an ISP service or which serves as a Portal would not be
considered an Interactive Service if and only to the extent that separate major
divisions or subsidiaries thereof offer products and services unrelated to the
ISP service (e.g., such that the Co-Branded Site could promote laser printers
offered by a separate division or subsidiary of such ISP or Portal, but not the
ISP or Portal services themselves)), provided, however, that any entity which is
primarily an Interactive Service (e.g., a reasonably significant portion of its
products or services satisfy one or more of the three criteria above) shall not
be excluded from the definition of Interactive Service regardless of the product
or service in question (e.g., even laser printers from Yahoo! would fall outside
the scope of this exception, and may not be promoted in the Co-Branded Site).

Interactive Site. Any interactive site or area, including, by way of example and
----------------
without limitation, (i) a site on the World Wide Web portion of the Internet or
(ii) a channel or area delivered through a "push" product such as the Pointcast
Network or interactive environment such as Microsoft's Active Desktop.

Keyword Search Terms.  (a) The Keyword(TM) online search terms made available
---------------------
on the AOL Service, combining AOL's Keyword(TM) online search modifier with a
term or phrase specifically related to Onvia (and determined in accordance with
the terms of this Agreement), and (b) the Go Word online search terms made
available on CompuServe, combining CompuServe's Go Word online search modifier
with a term or phrase specifically related to Onvia and determined in accordance
with the terms of this Agreement).

Licensed Content.  All Content offered through the Co-Branded Site, plus the AOL
----------------
Buying Directory, the RFQ/RFI Promotional Areas (including the the RFQ Services
and the RFI Services), and the Programming, pursuant to this Agreement or
otherwise provided by Onvia or its agents in connection herewith (e.g., offline
or online promotional Content, Promotions, AOL "slideshows" , etc.), including
in each case, any modifications, upgrades, updates, enhancements, and related
documentation.

Netcenter.   Netscape Communications Corporation's primary Internet-based
---------
Interactive Site marketed under the "Netscape Netcenter(TM)" brand, specifically
excluding (a) the AOL Service, (b) AOL.com, (c) any international versions of
such site, (d) "ICQ," "AOL Netfind(TM)," "AOL Instant Messenger(TM),"
"NetMail(TM)," "AOL Hometown," "My News," "Digital City(TM)," or any similar
independent product or service offered by or through such site or any other AOL
Interactive Site, (e) any programming or Content area offered by or through such
site over which AOL does not exercise complete operational control (including,
without limitation, Content areas controlled by other parties and member-created
Content areas), (f) any programming or Content area offered by or through the
U.S. version of the America Online(R) brand service which was operated,
maintained or controlled by the former AOL Studios division (e.g., Electra), (g)
any yellow pages, white pages, classifieds or other search, directory or review
services or Content offered by or through such site or any other AOL Interactive
Site, and (h) any other version of an AOL or Netscape Communications Corporation
Interactive Site which is materially different from Netscape Communications
Corporation's primary Internet-based Interactive Site marketed under the
"Netscape

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Netcenter-TM" brand, by virtue of its branding, distribution, functionality,
Content or services, including, without limitation, any co-branded versions and
any version distributed through any broadband distribution platform or through
any platform or device other than a desktop personal computer (e.g. Custom
NetCenters built specifically for third parties); provided, however, that
Onvia's rights herein, if any, in relation to any property, feature, product or
service which AOL or its affiliates may acquire subsequent to the Effective Date
and which then become part of Netcenter, will be subject to preexisting
agreements to which AOL or any of its affiliates is bound as a result of such
acquisition.

Portal.  Any interactive site or service, other than Onvia (subject to the
------
product and services restrictions in this Agreement), providing links to or
aggregation of (e.g., a portal such as Yahoo! or MSN.com), or search or
navigation of (e.g., a search engine such as Excite or Lycos), interactive sites
or services, in each case consolidating a broad selection of aggregated third
party interactive content or marketing a broad selection of multiple third party
product lines and/or services across numerous industries (e.g., by way of
example only, a commerce site which sells or promotes books, flowers, candy,
music and t-shirts from various third parties).  However, the term "Portal"
shall not include a commerce or content provider, no matter how large, if only
in one vertical industry and market (e.g., by way of example only:  (1) a news
content provider, such as Reuters, whose focus is just to provide news reports,
even though such reports may be numerous and far reaching across a variety of
topics (e.g., financial news, technology news, and international news; or (2) an
online bookstore, whose focus is just to sell books, even though such books may
be numerous and far reaching across a variety of topics (e.g., children's books,
reference books, and mystery books)).

Product.  Any product, good or service which Onvia (or others acting on its
-------
behalf or as distributors) offers, sells, provides, distributes or licenses to
AOL Users directly or indirectly through (i) the Co-Branded Site (including
through any Interactive Site linked thereto), (ii) any Onvia Interactive Site
(including through any Interactive Site linked thereto), (iii) any other
electronic means directed at AOL Users (e.g., e-mail offers), or (iv) an
"offline" means (e.g., toll-free number) for receiving orders related to
specific offers within the Co-Branded Site or any Onvia Interactive Site
requiring purchasers to reference a specific promotional identifier or tracking
code, including, without limitation, products sold through surcharged downloads
(to the extent expressly permitted hereunder).

Promotions.  The promotions described on Exhibit A, any comparable promotions
-----------
delivered by AOL in accordance with Section 1.1, and any additional promotions
of the Co-Branded Site provided by AOL (including, without limitation,
additional Keyword Search Terms and other navigational tools).

Remnant Inventory.   Advertising inventory which is unsold at the end of the
------------------
business day prior to the day on which that inventory will run.  If Onvia has
purchased Remnant Inventory, Onvia's creative will be slotted into such unsold
inventory by AOL from time to time in accordance with internal AOL policies.
AOL does not guarantee that Remnant Inventory Impressions will be delivered on
any particular day(s) or that such Impressions will be delivered evenly over the
Term.  Further, AOL does not guarantee placement on any particular screen or
group of screens (except that Channel level Remnant Inventory will be run only
within the specified Channel).

RFI Services.  As defined in Section 2.2.
------------

RFQ/RFI Promotional Areas.  As defined in Section 6.5.
-------------------------

RFQ Services.  As defined in Section 2.2.
------------

Run of Service Inventory or ROS.  A collection of inventory made up of all areas
------------------------    ---
of the relevant AOL property or service.  If Advertiser has purchased Run of
Service Inventory, AOL will place Advertiser's creative in different locations
throughout the relevant property or service in accordance with AOL internal
policies.  Advertiser may not control placement within a Run of Service
Inventory purchase and AOL does not guarantee placement on any particular screen
or group of screens (except that run of channel Inventory will be run only in
the specified channel).

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Standard Site.  Onvia's generally available web site, currently located at URL
-------------
http://www.onvia.com, or any successor thereto or replacement thereof.
--------------------

Transaction Margins.  Aggregate amounts paid by AOL Purchasers in connection
-------------------
with the sale, licensing, distribution or provision of any products, including,
in each case, handling, shipping, service charges (except to the extent that
such handling, shipping and service charges reflect Onvia's actual costs), and
excluding, in each case, (a) amounts collected for sales or use taxes or duties,
(b) credits and chargebacks for returned or canceled goods or services, and (c)
cost of goods sold and similar costs or expenses directly related thereto.

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                                   EXHIBIT C
                             Onvia Cross-Promotion
                             ---------------------

A.  Within the Standard Site, Onvia shall include the following (the "AOL
    Promos"): a continuous promotional banner, button or text link (with such
    banner or button to be at least 90 x 30 pixels or 70 x 70 pixels in size, or
    other size if mutually agreed) appearing prominently within any areas
    promoting internet access or connectivity products or services , to promote
    AOL Internet access or connectivity products or services as AOL may
    designate (for example, the America Online (R) brand service, the CompuServe
    (R) brand service, etc.) and, at AOL's option, download or order the then-
    current version of client software for such products or services. AOL will
    provide the creative content to be used in the AOL Promos (including
    designation of links from such content to other content pages), subject to
    Onvia's reasonable approval, not to be unreasonably withheld or delayed.
    Onvia shall use commercially reasonable efforts to post (or update, as the
    case may be) the creative content supplied by AOL within the spaces for the
    AOL Promos within five days of its receipt of such content from AOL. Without
    limiting any other reporting obligations of the Parties contained herein,
    Onvia shall use commercially reasonable efforts to provide AOL with monthly
    written reports specifying the number of impressions to the pages containing
    the AOL Promos during the prior month, and in any event shall provide such
    reports no less frequently than quarterly. In the event that AOL elects to
    serve the AOL Promos in accordance with this paragraph to the Standard Site
    from an ad server controlled by AOL or its agent, Onvia shall take all
    reasonable operational steps necessary to facilitate such ad serving
    arrangement including, without limitation, inserting HTML code designated by
    AOL on the pages of the Standard Site on which the AOL Promos will appear.
    In addition, within the Standard Site, Onvia shall provide prominent
    promotion for the keywords granted to Onvia hereunder. Onvia may participate
    in the standard, generally applicable `Affiliate Program', if any exists
    from the corresponding AOL brand. Onvia will need to comply with any general
    program guidelines relating to any such Affiliate Program as set forth by
    the applicable AOL brand. Information about AOL's generally applicable
    Affiliate Program is currently located at:

    http://affiliate.aol.com/affiliate/welcome.html.  When promoting AOL as
    -----------------------------------------------
    contemplated herein, Onvia will promote AOL as the preferred access provider
    through which a user can access the Standard Site, and Onvia shall not
    implement or authorize any other promotions on behalf of any third parties
    which are inconsistent herewith.

B.  In Onvia's television advertisements, radio advertisements of at least 30
    seconds in length, print advertisements and outdoor advertisements (e.g.,
    buses and billboards), and in any publications, programs, features or other
    forms of media over which Onvia exercises at least partial editorial
    control, except (1) when promoting a Prohibited Category (as set forth in
    Exhibit D) and (2) to the extent otherwise permitted by this Agreement where
    Onvia is promoting an Interactive Service other than AOL (which promotions
    will not account for more than five percent (5%) of the total advertising
    covered by this section), Onvia will include specific references or mentions
    (verbally where possible) of the availability of the Co-Branded Site through
    the AOL Network, which are at least as prominent as any references that
    Onvia makes to the Standard Site (by way of site name, related company name,
    URL or otherwise), and will promote AOL as a preferred access provider
    content aggregator. Without limiting the generality of the foregoing,
    Onvia's listing of the "URL" for the Standard Site (other than any
    customized or co-branded sites tailored for use with a third party
    Interactive Service) will be accompanied by an equally prominent listing of
    the "keyword" term on AOL for the Co-Branded Site. This will be done with
    the following treatment: "America Online Keyword: Onvia" or another AOL
    approved method.

C.  In any area on the Standard Site promoting internet connectivity services
    (including without limitation connectivity via ISP or DSL), Onvia will
    integrate all of AOL's connectivity services (e.g., AOL TV, AOL Service, and
    CompuServe) to an extent no less favorable than that for other providers of
    such services on the same site. To the extent that Onvia offers or promotes
    any products or services for sale which are similar to any Component
    Products (as defined herein), Onvia will use commercially reasonable efforts
    to provide equal or greater promotions for such AOL-designated products. In
    addition to the above, Onvia will include links to other AOL products or
    services from the Standard Site. Moreover, to the extent that Onvia
    integrates functionality similar to a Component Product in its Standard
    Site, Onvia shall discuss in good faith the possibility of using AOL's
    version of such
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    Component Product. For purposes of this Agreement, the term "Component
    Products" shall mean any of the following products or services: Internet
    connectivity (e.g., dial-up or DSL), instant messaging, chat, voice-
    activated chat, voice message, IP telephony, e-mail, search engines,
    navigation services, homesteading/personal web publishing, calendar
    functions, or "You've Got Pictures" or other similar photographic services.

D.  The Parties will discuss in good faith the possibility of expanding the
    cross-promotional relationships and programs contemplated in this Exhibit C,
    on terms to be mutually agreed.

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                                   EXHIBIT D
                   Description of Products and Other Content
                   -----------------------------------------

Permitted Categories:
--------------------

Onvia Products and Content on the Co-Branded Site will include only items
falling within the following categories of small business targeted products,
services, or content available via the Internet, to the extent that such
products, services or content actually are targeted to small business users (the
"Permitted Categories"):

 .  RFQ Services
 .  RFI Services
 .  The Co-Branded Site Buying Directory
 .  News and advice

Restricted Categories:
---------------------

If and to the extent that any of the above Permitted Categories include any
products, services or content pertaining to the following categories (as may be
updated by AOL no more than once per quarter during the Term (but any such
additions shall not retroactively affect Onvia's then existing promotions and
services)) (the "Restricted Categories"), then Onvia shall ensure that such
products, services or content pertaining to the Restricted Categories shall not
be permitted to appear within the Promo Content or the first page of the Co-
Branded Site directly linked to from the AOL Network (i.e., not within one
"click" of the AOL Network):

 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]
 . [* * *]

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Prohibited Categories:
---------------------

Notwithstanding anything to the contrary herein, products, services and content
pertaining to the following categories (as may be updated by AOL no more than
once per quarter during the Term (but any such additions shall not retroactively
affect Onvia's then existing promotions and services)) shall be excluded from
the Promo Content and all pages of the Co-Branded Site:

 .  [* * *]
 .  [* * *]
 .  [* * *]
 .  [* * *]
 .  [* * *]
 .  [* * *]
 .  [* * *]
 .  [* * *]
 .  [* * *]; provided that, for a period of 120 days from and after the Effective
Date, the Parties shall discuss in good faith their respective plans for barter
activities.

Additional Functionality:
------------------------

Onvia may add individual new products, services and content at any time without
AOL's prior written consent to the extent that such products, services and
content generally fall within the categories listed in and are consistent with
the terms and scope of this Exhibit D.  If Onvia wants to add products, services
or content which do not fall within the categories listed in this Exhibit D, the
Parties will, on a case-by-case basis, work together in good faith to discuss
the terms and conditions, if any, upon which such products, services or content
may be permitted, if and to the extent mutually agreed.

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                                   EXHIBIT E
                                   Operations
                                   ----------

1.  General.  Onvia will use commercially reasonable best efforts to ensure that
    -------
the Co-Branded Site (including the Products and other Content contained therein)
is in the top three (3) in the business-to-business industry, as determined by
each of the following methods:  (a) based on a cross-section of third-party
reviewers who are recognized authorities in such industry and (b) with respect
to all material quality averages or standards in such industry, including each
of the following:  (i) pricing of Products, (ii) scope and selection of Products
(except to the extent that Onvia is limited to offering certain Products
pursuant to the terms of this Agreement), (iii) quality of Products, (iv)
customer service and fulfillment associated with the marketing and sale of
Products and (v) ease of use.  In addition, the Co-Branded Site will, with
respect to each of the measures listed above, be competitive in all respects
with that which is offered by any Onvia competitors.

2.  Co-Branded Site Infrastructure.  Onvia will be responsible for all
    ------------------------------
communications, hosting and connectivity costs and expenses associated with the
Co-Branded Site.  Onvia will provide all hardware, software, telecommunications
lines and other infrastructure necessary to meet traffic demands on the Co-
Branded Site from the AOL Network.  Onvia will design and implement the network
between the AOL Service and Co-Branded Site such that (i) no single component
failure will have a materially adverse impact on AOL Members seeking to reach
the Co-Branded Site from the AOL Network and (ii) no single line under material
control by Onvia will run at more than 70% average utilization for a 5-minute
peak in a daily period.  In this regard, Onvia will provide AOL, upon request,
with a detailed network diagram regarding the architecture and network
infrastructure supporting the Co-Branded Site.  In the event that Onvia elects
to create a custom version of the Co-Branded Site in order to comply with the
terms of this Agreement, Onvia will bear responsibility for all aspects of the
implementation, management and cost of such customized site.

3.   Optimization; Speed.  Onvia will use commercially reasonable efforts to
     -------------------
ensure that: (a) the functionality and features within the Co-Branded Site are
optimized for the client software then in use by AOL Members; and (b) the Co-
Branded Site is designed and populated in a manner that minimizes delays when
AOL Users attempt to access such site.  At a minimum, Onvia will ensure that the
Co-Branded Site's data transfers initiate within fewer than fifteen (15) seconds
on average on a typical day.  Prior to commercial launch of any material
promotions described herein, Onvia will permit AOL to conduct performance and
load testing of the Co-Branded Site (in person or through remote
communications), with such commercial launch not to commence until such time as
AOL is reasonably satisfied with the results of any such testing.

4.  User Interface.  Onvia will maintain a graphical user interface within the
    --------------
Co-Branded Site that is reasonably competitive in all material respects with
interfaces of other similar sites based on similar form technology.  AOL
reserves the right to review and reasonably approve the user interface and site
design prior to launch of the Promotions and to conduct focus group testing to
assess compliance with respect to such consultation and with respect to Onvia's
compliance with the preceding sentence.

5.  Technical Problems.  Onvia agrees to use commercially reasonable efforts to
    ------------------
address material technical problems (over which Onvia exercises control)
affecting use by AOL Users of the Co-Branded Site (a "Onvia Technical Problem")
promptly following notice thereof.  In the event that Onvia is unable to
promptly resolve an Onvia Technical Problem following notice thereof from AOL
(including, without limitation, infrastructure deficiencies producing user
delays), AOL will have the right to regulate the promotions it provides to Onvia
hereunder until such time as Onvia corrects the Onvia Technical Problem at
issue.

6.  Monitoring.  Onvia will ensure that the performance and availability of the
    ----------
Co-Branded Site is monitored on a continuous basis.  Onvia will provide AOL with
contact information (including e-mail, phone, pager and fax information, as
applicable, for both during and after business hours) for Onvia's principal
business and technical representatives, for use in cases when issues or problems
arise with respect to the Co-Branded Site.

7.  Telecommunications. Where applicable Onvia will utilize encryption
    ------------------
methodology to secure data communications between the Parties' data centers.
The network between the Parties will be configured such that no single component
failure will significantly impact AOL Users.  The network will be sized such
that no single line over which the Onvia has material control runs at more than
70% average utilization for a 5-minute peak in a daily period.

8.  Security.  Onvia will utilize Internet standard encryption technologies
    --------
(e.g., Secure Socket Layer - SSL) to provide a secure environment for conducting
transactions and/or transferring private member information (e.g. credit card
numbers, banking/financial information, and member address information) to and
from the Co-Branded Site.  Onvia will facilitate periodic reviews of the Co-
Branded Site by AOL in order to evaluate the security risks of such site.  Onvia
will promptly remedy any security risks or breaches of security as may be
identified by AOL's Operations Security team.

9.  Technical Performance.
    ---------------------

        i. Onvia will design the Co-Branded Site to support the AOL-client
    embedded versions of the Microsoft Internet Explorer 3.XX and 4.XX browsers
    (Windows and Macintosh) (and above) and the Netscape Browser 4.XX (and
    above) and make commercially reasonable efforts to support all other AOL
    browsers listed at: "http://webmaster.info.aol.com."

        ii.  To the extent Onvia creates customized pages on the Co-Branded Site
    for AOL Members, Onvia will develop and employ a methodology to detect AOL
    Members (e.g. examine the HTTP User-Agent field in order to identify the
    "AOL Member-Agents" listed at: "http://webmaster. info.aol.com)."

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        iii. Onvia will periodically review the technical information made
    available by AOL at http://webmaster.info.aol.com.

        iv.  Onvia will design its site to support HTTP 1.0 or later protocol as
    defined in RFC 1945 and to adhere to AOL's parameters for refreshing or
    preventing the caching of information in AOL's proxy system as outlined in
    the document provided at the following URL: http://webmaster.info.aol.com.
    Onvia is responsible for the manipulation of these parameters in web-based
    objects so as to allow them to be cached or not cached as outlined in RFC
    1945.

        v.   Prior to releasing material, new functionality or features through
    the Co-Branded Site ("New Functionality"), Onvia will use commercially
    reasonable efforts to (i) test the New Functionality to confirm its
    compatibility with AOL Service browser/client software and (ii) provide AOL
    with written notice of the New Functionality so that AOL can perform tests
    of the New Functionality to confirm its compatibility with the AOL Service
    client software; provided that if Onvia's notice specifies a commercially
    reasonable amount of time in which to perform such tests and AOL fails to do
    so within the specified time, then Onvia shall have the right to release the
    New Functionality provided that it is in compliance with the other
    requirements hereof. Should any new material, new functionality or features
    through the Co-Branded Site be released without notification to AOL, AOL
    will not be responsible for any adverse member experience until such time
    that compatibility tests can be performed and the new material,
    functionality or features is qualified for the AOL Service.

10.  AOL Internet Services Onvia Support.  AOL will provide Onvia with access to
     -----------------------------------
the standard online resources, standards and guidelines documentation, technical
phone support, monitoring and after-hours assistance that AOL makes generally
available to similarly situated web-based partners.  AOL support will not, in
any case, be involved with content creation on behalf of Onvia or support for
any technologies, databases, software or other applications which are not
supported by AOL or are related to any Onvia  area other than the Co-Branded
Site.  Support to be provided by AOL is contingent on Onvia providing to AOL
demo account information (where applicable), a detailed description of the Co-
Branded Site's software, hardware and network architecture and access to the Co-
Branded Site for purposes of such performance and load testing as AOL elects to
conduct.

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                                   EXHIBIT F

                   Standard Online Commerce Terms & Conditions
                   -------------------------------------------

1.  AOL Network Distribution.  Onvia will not authorize or permit any third
    ------------------------
party to distribute or promote the Products or any Onvia Interactive Site other
than the Co-Branded Site through the AOL Network absent AOL's prior written
approval. The Promotions and any other promotions or advertisements purchased
from or provided by AOL will link only to the Co-Branded Site, will be used by
Onvia solely for its own benefit and will not be resold, traded, exchanged,
bartered, brokered or otherwise offered to any third party.

2.  Provision of Other Content. In the event that AOL notifies Onvia that (i) as
    --------------------------
reasonably determined by AOL, any Content within the Co-Branded Site violates
AOL's then-standard Terms of Service (as set forth on the America Online brand
service at Keyword term "TOS"), for the AOL Service or any other AOL property
through which the Co-Branded Site is promoted, the terms of this Agreement or
any other standard, written AOL policy or (ii) AOL reasonably objects to the
inclusion of any Content within the Co-Branded Site (provided, however, that any
specific items of Content (e.g., Products) which are expressly identified in
this Agreement as provided by Onvia (e.g., as listed in Exhibits A-1 and D) may
not be objected to by AOL pursuant to this section if such Content otherwise
complies with the terms of this Agreement), then Onvia will take commercially
reasonable steps to block access by AOL Users to such Content using Onvia's
then-available technology. In the event that Onvia cannot, through its
commercially reasonable efforts, block access by AOL Users to the Content in
question, then Onvia will provide AOL prompt written notice of such fact. AOL
may then, at its option, restrict access from the AOL Network to the Content in
question using technology available to AOL. Onvia will use commercially
reasonable best efforts to cooperate with AOL's reasonable requests to the
extent AOL elects to implement any such access restrictions.

3.  Contests.  Onvia will take all steps necessary to ensure that any contest,
    --------
sweepstakes or similar promotion conducted or promoted through the Co-Branded
Site (a "Contest") complies with all applicable federal, state and local laws
and regulations.

4.  Navigation.  AOL will be entitled to establish navigational icons, links and
    ----------
pointers connecting the Co-Branded Site (or portions thereof) with other content
areas on or outside of the AOL Network (e.g., as set forth in Section 2.1 of the
main body of this Agreement). Additionally, in cases where an AOL User performs
a search for Onvia through any search or navigational tool or mechanism that is
accessible or available through the AOL Network (e.g., Promotions, Keyword
Search Terms, or any other promotions or navigational tools), AOL shall have the
right to direct such AOL User to the Co-Branded Site, or the Standard Site
determined by AOL in its reasonable discretion.

5.  Disclaimers. Upon AOL's request, Onvia agrees to include within the Co-
    -----------
Branded Site a product disclaimer (the specific form and substance to be
mutually agreed upon by the Parties) indicating that transactions are solely
between Onvia and AOL Users purchasing Products from Onvia.

6.  AOL Look and Feel. Onvia acknowledges and agrees that AOL will own all
    -----------------
right, title and interest in and design, organization, presentation, layout,
user interface, navigation and stylistic convention (including the digital
implementations thereof) which are generally associated with online areas
contained within the AOL Network, subject to Onvia's ownership or other rights
in any of Onvia trademarks or copyrighted material within the Co-Branded Site or
the Licensed Content.

7.  Management of the Co-Branded Site. Onvia will manage, review, delete, edit,
create, update and otherwise manage all Content available on or through the Co-
Branded Site, in a timely and professional manner and in accordance with the
terms of this Agreement. Onvia will use commercially reasonable best efforts to
ensure that the Co-Branded Site is current, accurate and well-organized at all
times. Onvia warrants that the Products and other Licensed Content : (i) will
not infringe on or violate any copyright, trademark, U.S. patent or any other
third party right, including without limitation, any music performance or other
music-related rights; (ii) will not violate AOL's then-applicable Terms of
Service for the AOL Service and any other AOL property through which the Co-
Branded Site will be promoted or any other standard, written AOL policy which
has been delivered to Onvia; and (iii) will not violate any applicable law or
regulation, including those relating to contests, sweepstakes or similar
promotions. Additionally, Onvia represents and warrants that it owns or has a
valid license to all rights to any Licensed Content used in AOL "slideshow" or
other formats embodying elements such as graphics, animation and sound, free and
clear of all encumbrances and without violating the rights of any other person
or entity. Onvia also warrants that a reasonable basis exists for all Product
performance or comparison claims appearing through the Co-Branded Site. Except
as otherwise set forth in this Agreement, Onvia shall not in any manner,
including, without limitation in any Promotion, the Licensed Content or the
Promotional Materials state or imply that AOL recommends or endorses Onvia or
Onvia's Products (e.g., no statements that Onvia is an "official" or "preferred"
provider of products or services for AOL). AOL will have no obligations with
respect to the Products available on or through the Co-Branded Site, including,
but not limited to, any duty to review or monitor any such Products.

8.  Duty to Inform. Onvia will promptly inform AOL of any information
    --------------
related to the Co-Branded Site which could reasonably lead to a material claim,
demand, or liability of or against AOL and/or its affiliates by any third party.

9.  Customer Service. It is the sole responsibility of Onvia to provide customer
    ----------------
service to persons or entities purchasing Products through the Co-Branded Site
or Standard Site ("Customers"). Onvia will bear full responsibility for all
customer service, including without limitation, order processing, billing,
fulfillment, shipment, collection and other customer service associated with any
Products offered, sold or

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licensed through the Co-Branded Site, and AOL will have no obligations
whatsoever with respect thereto. Onvia will receive all emails from Customers
via a computer available to Onvia's customer service staff and generally respond
to such emails within one business day of receipt. Onvia will receive all orders
electronically and generally process all orders within one business day of
receipt, provided Products ordered are not advance order items. Onvia will
ensure that all orders of Products are received, processed, fulfilled and
delivered on a timely and professional basis. Onvia will offer AOL Users who
purchase Products through such Co-Branded Site a satisfaction guarantee. Onvia
will bear all responsibility for compliance with federal, state and local laws
in the event that Products are out of stock or are no longer available at the
time an order is received. Onvia will also comply with the requirements of any
federal, state or local consumer protection or disclosure law. Payment for
Products will be collected by Onvia directly from customers. Onvia's order
fulfillment operation will be subject to AOL's reasonable review.

10.  Production Work.  In the event that Onvia requests AOL's additional
     ---------------
production assistance (other than as expressly set forth herein) in connection
with (i) ongoing programming and maintenance related to the Co-Branded Site,
(ii) a redesign of or addition to the Co-Branded Site (e.g., a change to an
existing screen format or construction of a new custom form), (iii) production
to modify work performed by a third party provider or (iv) any other type of
production work, Onvia will work with AOL to develop a detailed production plan
for the requested production assistance (the "Production Plan"). Following
receipt of the final Production Plan, AOL will notify Onvia of (i) AOL's
availability to perform the requested production work, (ii) the proposed fee or
fee structure for the requested production and maintenance work and (iii) the
estimated development schedule for such work. To the extent the Parties reach
agreement regarding implementation of the agreed-upon Production Plan, such
agreement will be reflected in a separate work order signed by the Parties. To
the extent Onvia elects to retain a third party provider to perform any such
production work, work produced by such third party provider must generally
conform to AOL's standards & practices (as provided on the America Online brand
service at Keyword term "styleguide"). The specific production resources which
AOL allocates to any production work to be performed on behalf of Onvia will be
as determined by AOL in its sole discretion. With respect to any routine
production, maintenance or related services which AOL reasonably determines are
necessary for AOL to perform in order to support the proper functioning and
integration of the Co-Branded Site ("Routine Services"), Onvia will pay the
then-standard fees charged by AOL for such Routine Services.

11.  Overhead Accounts.   To the extent AOL has granted Onvia any overhead
     ------------------
accounts on the AOL Service, Onvia will be responsible for the actions taken
under or through its overhead accounts, which actions are subject to AOL's
applicable Terms of Service and for any surcharges, including, without
limitation, all premium charges, transaction charges, and any applicable
communication surcharges incurred by any overhead Account issued to Onvia, but
Onvia will not be liable for charges incurred by any overhead account relating
to AOL's standard monthly usage fees and standard hourly charges, which charges
AOL will bear. Upon the termination of this Agreement, all overhead accounts,
related screen names and any associated usage credits or similar rights, will
automatically terminate. AOL will have no liability for loss of any data or
content related to the proper termination of any overhead account.

12.  Navigation Tools.  Any Keyword Search Terms to be directed to the Co-
     ----------------
Branded Site shall be (i) subject to availability for use by Onvia and (ii)
limited to the combination of the Keyword(TM) search modifier combined with a
registered trademark of Onvia (e.g. "AOL keyword: XYZ Company Name"). AOL
reserves the right to revoke at any time Onvia's use of any Keyword Search Terms
which do not incorporate registered trademarks of Onvia. Onvia acknowledges that
its utilization of a Keyword Search Term will not create in it, nor will it
represent it has, any right, title or interest in or to such Keyword Search
Term, other than the right, title and interest Onvia holds in Onvia's registered
trademark independent of the Keyword Search Term. Without limiting the
generality of the foregoing, Onvia will not: (a) attempt to register or
otherwise obtain trademark or copyright protection in the Keyword Search Term;
or (b) use the Keyword Search Term, except for the purposes expressly required
or permitted under this Agreement. To the extent AOL allows AOL Users to
"bookmark" the URL or other locator for the Co-Branded Site, such bookmarks will
be subject to AOL's control at all times. Upon the termination of this
Agreement, Onvia's rights to any Keyword Search Terms and bookmarking will
terminate.

13.  Merchant Certification Program. Onvia will participate in any generally
     ------------------------------
applicable "Certified Merchant" program operated by AOL or its authorized agents
or contractors. Such program may require merchant participants on an ongoing
basis to meet certain reasonable, generally applicable standards relating to
provision of electronic commerce through the AOL Network (including, as a
minimum, use of 40-bit SSL encryption and if requested by AOL, 128-bit
encryption) and may also require the payment of certain reasonable certification
fees to the applicable entity operating the program. Each Certified Merchant in
good standing will be entitled to place on its affiliated Interactive Site an
AOL designed and approved button promoting the merchant's status as an AOL
Certified Merchant.

14.  Reward Programs.  On the Co-Branded Site, Onvia shall not offer, provide,
     ---------------
implement or otherwise make available any promotional programs or plans that are
intended to provide customers with rewards or benefits in exchange for, or on
account of, their past or continued loyalty to, or patronage or purchase of, the
products or services of Onvia or any third party (e.g., a promotional program
similar to a "frequent flier" program), unless such promotional program or plan
is provided exclusively through AOL's "AOL Rewards" program, accessible on the
AOL Service at Keyword: "AOL Rewards." Notwithstanding the foregoing, on the Co-
Branded Site Onvia may have its own loyalty program for discounts on products
and services. In such event, Onvia shall use commercially reasonable efforts to
also use AOL's rewards program.

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                                                                  Execution Copy

15.  Search Terms.  To the extent this Agreement sets forth any mechanism by
     ------------
which the Co-Branded Site will be promoted in connection with specified search
terms within any AOL product or service, Onvia hereby represents and warrants
that Onvia has all consents, authorizations, approvals, licenses, permits or
other rights necessary for Onvia to use such specified search terms.
Notwithstanding the foregoing, AOL shall have the right to suspend the use of
any search term if AOL has a reasonable belief that continued use may subject
AOL to liability or other adverse consequences.

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                                 CONFIDENTIAL
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                                                                  Execution Copy

                                   EXHIBIT G
                       Standard Legal Terms & Conditions
                       ---------------------------------

11.  Promotional Materials.  In addition to the requirements of Section 5.7 of
     ---------------------
the main body of this Agreement (relating to Press Releases), each Party will
submit to the other Party, for its prior written approval, which will not be
unreasonably withheld or delayed, any marketing, advertising, or other
promotional materials (excluding Press Releases) related to the Co-Branded Site
and/or referencing the other Party and/or its trade names, trademarks, and
service marks (the "Promotional Materials"); provided, however, that either
Party's use of screen shots of the Co-Branded Site for promotional purposes will
not require the approval of the other Party so long as America Online(R) is
clearly identified as the source of such screen shots; and provided further,
however, that, following the initial public announcement of the business
relationship between the Parties in accordance with the approval and other
requirements contained herein, either Party's subsequent factual reference to
the existence of a business relationship between the Parties in Promotional
Materials,  will not require the approval of the other Party.  Each Party will
solicit and reasonably consider the views of the other Party in designing and
implementing such Promotional Materials.  Once approved, the Promotional
Materials may be used by a Party and its affiliates for the purpose of promoting
the Co-Branded Site and the content contained therein and reused for such
purpose until such approval is withdrawn with reasonable prior notice.  In the
event such approval is withdrawn, existing inventories of Promotional Materials
may be depleted.

12.  License.  Onvia hereby grants AOL a non-exclusive worldwide license to
     -------
market, license, distribute, reproduce, display, perform, transmit and promote
(but not to sublicense or reverse engineer any software) the Licensed Content
(or any portion thereof, except the source code of any software) through such
areas or features of the AOL Network as AOL deems appropriate.  Onvia
acknowledges and agrees that the foregoing license permits AOL to distribute
portions of the Licensed Content in synchronism or timed relation with visual
displays prepared by Onvia or AOL (e.g., as part of an AOL "slideshow").  In
addition, AOL Users will have the right to access and use the Co-Branded Site.
Onvia reserves any rights not expressly granted to AOL hereunder.

13.  Trademark License. In designing and implementing the Materials and subject
     -----------------
to the other provisions contained herein, Onvia will be entitled to use the
following trade names, trademarks, and service marks of AOL:  the "America
Online(R)" brand service, "AOL(TM)" service/software and AOL's triangle logo;
and AOL and its affiliates will be entitled to use the trade names, trademarks,
and service marks of Onvia for which Onvia holds all rights necessary for use in
connection with this Agreement (collectively, together with the AOL marks listed
above, the "Marks"); provided that each Party: (i) does not create a unitary
composite mark involving a Mark of the other Party without the prior written
approval of such other Party; and (ii) displays symbols and notices clearly and
sufficiently indicating the trademark status and ownership of the other Party's
Marks in accordance with applicable trademark law and practice.

14.  Ownership of Trademarks.  Each Party acknowledges the ownership right of
     -----------------------
the other Party in the Marks of the other Party and agrees that all use of the
other Party's Marks will inure to the benefit, and be on behalf, of the other
Party.  Each Party acknowledges that its utilization of the other Party's Marks
will not create in it, nor will it represent it has, any right, title, or
interest in or to such Marks other than the licenses expressly granted herein.
Each Party agrees not to do anything contesting or impairing the trademark
rights of the other Party.

15.  Quality Standards.  Each Party agrees that the nature and quality of its
     -----------------
products and services supplied in connection with the other Party's Marks will
conform to reasonable quality standards set by the other Party.  Each Party
agrees to supply the other Party, upon reasonable request, with a reasonable
number of samples of any Materials publicly disseminated by such Party which
utilize the other Party's Marks.  Each Party will comply with all applicable
laws, regulations, and customs and obtain any required government approvals
pertaining to use of the other Party's marks.

16.  Infringement Proceedings.  Each Party agrees to promptly notify the other
     ------------------------
Party of any unauthorized use of the other Party's Marks of which it has actual
knowledge.  Each Party will have the sole right and discretion to bring
proceedings alleging infringement of its Marks or unfair competition related
thereto; provided, however, that each Party agrees to provide the other Party
with its reasonable cooperation and assistance with respect to any such
infringement proceedings.

17.  Representations and Warranties.  Each Party represents and warrants to the
     ------------------------------
other Party that: (i) such Party has the full corporate right, power and
authority to enter into this Agreement and to perform the acts required of it
hereunder; (ii) the execution of this Agreement by such Party, and the
performance by such Party of its obligations and duties hereunder, do not and
will not violate any agreement to which such Party is a party or by which it is
otherwise bound; (iii) when executed and delivered by such Party, this Agreement
will constitute the legal, valid and binding obligation of such Party,
enforceable against such Party in accordance with its terms; and (iv) such Party
acknowledges that the other Party makes no representations, warranties or
agreements related to the subject matter hereof that are not expressly provided
for in this Agreement. Onvia hereby represents and warrants that it possesses
all authorizations, approvals, consents, licenses, permits, certificates or
other rights and permissions necessary to sell the  Products.

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                                 CONFIDENTIAL
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<PAGE>

                                                                  Execution Copy

18.  Confidentiality.  Each Party acknowledges that Confidential Information may
     ---------------
be disclosed to the other Party during the course of this Agreement.  Each Party
agrees that it will take reasonable steps, at least substantially equivalent to
the steps it takes to protect its own proprietary information, during the term
of this Agreement, and for a period of three years following expiration or
termination of this Agreement, to prevent the duplication or disclosure of
Confidential Information of the other Party, other than by or to its employees
or agents who must have access to such Confidential Information to perform such
Party's obligations hereunder, who will each agree to comply with this section.
Notwithstanding the foregoing, either Party may issue a press release or other
disclosure containing Confidential Information without the consent of the other
Party, to the extent such disclosure is required by law, rule, regulation or
government or court order.  In such event, the disclosing Party will provide at
least five (5) business days prior written notice of such proposed disclosure to
the other Party.  Further, in the event such disclosure is required of either
Party under the laws, rules or regulations of the Securities and Exchange
Commission or any other applicable governing body, such Party will (i) redact
mutually agreed-upon portions of this Agreement to the fullest extent permitted
under applicable laws, rules and regulations and (ii) submit a request to such
governing body that such portions and other provisions of this Agreement receive
confidential treatment under the laws, rules and regulations of the Securities
and Exchange Commission or otherwise be held in the strictest confidence to the
fullest extent permitted under the laws, rules or regulations of any other
applicable governing body.

19.  Limitation of Liability; Disclaimer; Indemnification.
     ----------------------------------------------------

9.1  Liability.   UNDER NO CIRCUMSTANCES WILL EITHER PARTY BE LIABLE TO THE
---------------
OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY
DAMAGES (EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES), ARISING FROM BREACH OF THE AGREEMENT, THE SALE OF PRODUCTS, THE USE OR
INABILITY TO USE THE AOL NETWORK, THE AOL SERVICE, AOL.COM OR THE CO-BRANDED
SITE, OR ARISING FROM ANY OTHER PROVISION OF THIS AGREEMENT, SUCH AS, BUT NOT
LIMITED TO, LOSS OF REVENUE OR ANTICIPATED PROFITS OR LOST BUSINESS
(COLLECTIVELY, "DISCLAIMED DAMAGES"); PROVIDED THAT EACH PARTY WILL REMAIN
LIABLE TO THE OTHER PARTY TO THE EXTENT ANY DISCLAIMED DAMAGES ARE CLAIMED BY A
THIRD PARTY AND ARE SUBJECT TO INDEMNIFICATION PURSUANT TO SECTION 9.3. EXCEPT
AS PROVIDED IN SECTION 9.3 OF THIS EXHIBIT G OR SECTION 5.7 OF THE MAIN BODY OF
THIS AGREEMENT, (I) LIABILITY ARISING UNDER THIS AGREEMENT WILL BE LIMITED TO
DIRECT, OBJECTIVELY MEASURABLE DAMAGES, AND (II) THE MAXIMUM LIABILITY OF ONE
PARTY TO THE OTHER PARTY FOR ANY CLAIMS ARISING IN CONNECTION WITH THIS
AGREEMENT WILL NOT EXCEED THE AGGREGATE AMOUNT OF FIXED GUARANTEED PAYMENT
OBLIGATIONS OWED BY ONVIA HEREUNDER IN THE YEAR IN WHICH THE EVENT GIVING RISE
TO LIABILITY OCCURS; PROVIDED THAT EACH PARTY WILL REMAIN LIABLE FOR THE
AGGREGATE AMOUNT OF ANY PAYMENT OBLIGATIONS OWED TO THE OTHER PARTY PURSUANT TO
THE AGREEMENT.

9.2  No Additional Warranties.  EXCEPT AS EXPRESSLY SET FORTH IN THIS
-----------------------------
AGREEMENT, NEITHER PARTY MAKES ANY, AND EACH PARTY HEREBY SPECIFICALLY DISCLAIMS
ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE AOL
NETWORK, THE AOL SERVICE, AOL.COM OR THE CO-BRANDED SITE, INCLUDING ANY IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND IMPLIED
WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE. WITHOUT
LIMITING THE GENERALITY OF THE FOREGOING, AOL SPECIFICALLY DISCLAIMS ANY
WARRANTY REGARDING THE PROFITABILITY OF THE CO-BRANDED SITE.

9.3  Indemnity.  Either Party will defend, indemnify, save and hold harmless
--------------
the other Party and the officers, directors, agents, affiliates, distributors,
franchisees and employees of the other Party from any and all third party
claims, demands, liabilities, costs or expenses, including reasonable attorneys'
fees ("Liabilities"), resulting from the indemnifying Party's material breach of
any duty, representation, or warranty of this Agreement.

9.4  Claims. If a Party entitled to indemnification hereunder (the "Indemnified
-----------
Party") becomes aware of any matter it believes is indemnifiable hereunder
involving any claim, action, suit, investigation, arbitration or other
proceeding against the Indemnified Party by any third party (each an "Action"),
the Indemnified Party will give the other Party (the "Indemnifying Party")
prompt written notice of such Action. Such notice will (i) provide the basis on
which indemnification is being asserted and (ii) be accompanied by copies of all
relevant pleadings, demands, and other papers related to the Action and in the
possession of the Indemnified Party. The Indemnifying Party will have a period
of ten (10) days after delivery of such notice to respond. If the Indemnifying
Party elects to defend the Action or does not respond within the requisite ten
(10) day period, the Indemnifying Party will be obligated to defend the Action,
at its own expense, and by counsel reasonably satisfactory to the Indemnified
Party. The Indemnified Party will cooperate, at the expense of the Indemnifying
Party, with the Indemnifying Party and its counsel in the defense and the
Indemnified Party will have the right to participate fully, at its own expense,
in the
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                                                                  Execution Copy

defense of such Action. If the Indemnifying Party responds within the required
ten (10) day period and elects not to defend such Action, the Indemnified Party
will be free, without prejudice to any of the Indemnified Party's rights
hereunder, to compromise or defend (and control the defense of) such Action. In
such case, the Indemnifying Party will cooperate, at its own expense, with the
Indemnified Party and its counsel in the defense against such Action and the
Indemnifying Party will have the right to participate fully, at its own expense,
in the defense of such Action. Any compromise or settlement of an Action will
require the prior written consent of both Parties hereunder, such consent not to
be unreasonably withheld or delayed.

10.  Acknowledgment.  AOL and Onvia each acknowledges that the provisions of
-------------------
this Agreement were negotiated to reflect an informed, voluntary allocation
between them of all risks (both known and unknown) associated with the
transactions contemplated hereunder. The limitations and disclaimers related to
warranties and liability contained in this Agreement are intended to limit the
circumstances and extent of liability. The provisions of this Section 10 will be
enforceable independent of and severable from any other enforceable or
unenforceable provision of this Agreement.

20.  Solicitation of AOL Users. During the term of the Agreement and for a
-----------------------------
eighteen month period thereafter, Onvia will not use the AOL Network (including,
without limitation, the e-mail network contained therein) to solicit AOL Users
on behalf of another Interactive Service.  More generally, Onvia will not send
unsolicited, commercial e-mail (i.e., "spam") or other online communications
through or into AOL's products or services, absent a Prior Business
Relationship. For purposes of this Agreement, a "Prior Business Relationship"
will mean that the AOL User to whom commercial e-mail or other online
communication is being sent has voluntarily either (i) engaged in a transaction
with Onvia or (ii) provided information to Onvia through a contest,
registration, or other communication, which included clear notice to the AOL
User that the information provided could result in commercial e-mail or other
online communication being sent to that AOL User by Onvia or its agents.  Any
commercial e-mail or other online communications to AOL Users which are
otherwise permitted hereunder, will (a) include a prominent and easy means to
"opt-out" of receiving any future commercial communications from Onvia, and (b)
shall also be subject to AOL's then-standard restrictions on distribution of
bulk e-mail (e.g., related to the time and manner in which such e-mail can be
distributed through or into the AOL product or service in question), subject to
paragraph 12, clause (b)(i), of this Exhibit G.   Any e-mail or other online
communications permitted under this paragraph may inform AOL Users of areas
within the Co-Branded Site which may be of interest to them, in order to provide
for a better user experience.

21.  AOL User Communications. To the extent that Onvia is permitted to
     -----------------------
communicate with AOL Users under this Exhibit G, in any such communications to
AOL Users on or off the Co-Branded Site (including, without limitation, e-mail
solicitations), Onvia will not encourage AOL Users who have visited the Co-
Branded Site during the Term (but excluding such AOL Users who have transacted
with Onvia prior to the Term) to take any action inconsistent with the scope and
purpose of this Agreement.  Further, Onvia shall not encourage AOL Users to (i)
bookmark Interactive Sites, or (ii) change the default home page on the AOL
browser.  Further still Onvia shall not encourage AOL Users who have visited the
Co-Branded Site during the Term (but excluding such AOL Users who have
transacted with Onvia prior to the Term), to (a) use any Interactive Site other
than the Co-Branded Site for the purchase of Products, or (b) use Content other
than the Licensed Content.  Additionally, with respect to such AOL User
communications, in the event that Onvia encourages an AOL User to purchase
products through such communications, Onvia shall ensure that, during the Term,
(x) the AOL Network is promoted as the primary means through which the AOL User
can access the Co-Branded Site and (y) any link to the Co-Branded Site will link
to a page which indicates to the AOL User that such user is in a site which is
affiliated with the AOL Network.

22.  Collection and Use of User Information.  Onvia shall ensure that its
     --------------------------------------
collection, use and disclosure of information obtained from AOL Users under this
Agreement ("User Information") complies with (i) all applicable laws and
regulations and (ii) AOL's standard privacy policies, available on the AOL
Service at the keyword term "Privacy" (or, in the case of the Co-Branded Site,
Onvia's standard privacy policies so long as such policies are prominently
published on the site and provide adequate notice, disclosure and choice to
users regarding Onvia's collection, use and disclosure of user information).
Onvia will not disclose User Information collected hereunder to any third party
in a manner that identifies AOL Users as end users of an AOL product or service
or use Member Information collected under this Agreement to market another
Interactive Service.  Notwithstanding anything to the contrary herein, (a) if
end users are required to register to access certain features within the Co-
Branded Site (including the Co-Branded Site Buying Directory), or the AOL Buying
Directory, the Parties will use commercially reasonable best efforts to ensure
that such registration processes will be seamlessly integrated with Netscape's
"Universal Registration" or AOL's "SNAP" system (or such other registration
system developed by AOL) and be consistent with the respective brand's then-
current privacy policy; (b) AOL will continue to own all end user data
previously owned by it which is passed on to Onvia via universal registration or
any other means in conjunction with the use of the Co-Branded Site and the AOL
Buying Directory, and (c) that in cases where a user registers or transacts for
Onvia's products and services on the Co-Branded Site, the User Information
collected therefrom will be jointly
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                                                                  Execution Copy

owned by AOL and Onvia, subject to any express limitations herein. AOL and Onvia
may promote products and services to the user base shared by them, provided that
such promotions may not be for any Interactive Service and may not be
inconsistent with the scope and terms of this Agreement.

23.  Excuse.  Neither Party will be liable for, or be considered in breach of or
     ------
default under this Agreement on account of, any delay or failure to perform as
required by this Agreement as a result of any causes or conditions which are
beyond such Party's reasonable control and which such Party is unable to
overcome by the exercise of reasonable diligence.

24.  Independent Contractors.  The Parties to this Agreement are independent
     -----------------------
contractors.  Neither Party is an agent, representative or employee of the other
Party.  Neither Party will have any right, power or authority to enter into any
agreement for or on behalf of, or incur any obligation or liability of, or to
otherwise bind, the other Party.  This Agreement will not be interpreted or
construed to create an association, agency, joint venture or partnership between
the Parties or to impose any liability attributable to such a relationship upon
either Party.

25.  Notice.  Any notice, approval, request, authorization, direction or other
     ------
communication under this Agreement will be given in writing and will be deemed
to have been delivered and given for all purposes (i) on the delivery date if
delivered by electronic mail on the AOL Network (to screenname
"AOLNotice@AOL.com" in the case of AOL) or by confirmed facsimile; (ii) on the
delivery date if delivered personally to the Party to whom the same is directed;
(iii) one business day after deposit with a commercial overnight carrier, with
written verification of receipt; or (iv) five business days after the mailing
date, whether or not actually received, if sent by U.S. mail, return receipt
requested, postage and charges prepaid, or any other means of rapid mail
delivery for which a receipt is available.  In the case of AOL, such notice will
be provided to both the Senior Vice President for Business Affairs (fax no. 703-
265-1206) and the Deputy General Counsel (fax no. 703-265-1105), each at the
address of AOL set forth in the first paragraph of this Agreement.  In the case
of Onvia, except as otherwise specified herein, the notice address will be the
address for Onvia set forth in the first paragraph of this Agreement, with the
other relevant notice information, including the recipient for notice and, as
applicable, such recipient's fax number or AOL e-mail address, to be as
reasonably identified by AOL.

26.  Launch Dates.  In the event that any terms contained herein relate to or
     ------------
depend on the commercial launch date of the Co-Branded Site contemplated by this
Agreement (the "Launch Date"), then it is the intention of the Parties to record
such Launch Date in a written instrument signed by both Parties promptly
following such Launch Date; provided that, in the absence of such a written
instrument, the Launch Date will be as reasonably determined by AOL based on the
information available to AOL.

27.  No Waiver.  The failure of either Party to insist upon or enforce strict
     ---------
performance by the other Party of any provision of this Agreement or to exercise
any right under this Agreement will not be construed as a waiver or
relinquishment to any extent of such Party's right to assert or rely upon any
such provision or right in that or any other instance; rather, the same will be
and remain in full force and effect.

28.  Return of Information.  Upon the expiration or termination of this
     ---------------------
Agreement, each Party will, upon the written request of the other Party, return
or destroy (at the option of the Party receiving the request) all Confidential
Information, documents, manuals and other materials specified the other Party.

29.  Survival.  Section 5.3 of the body of the Agreement, Sections 8 through 30
     --------
of this Exhibit, and any payment obligations accrued prior to termination or
expiration will survive the completion, expiration, termination or cancellation
of this Agreement.

30.  Entire Agreement.  This Agreement sets forth the entire agreement and
     ----------------
supersedes any and all prior agreements of the Parties with respect to the
transactions set forth herein.  Neither Party will be bound by, and each Party
specifically objects to, any term, condition or other provision which is
different from or in addition to the provisions of this Agreement (whether or
not it would materially alter this Agreement) and which is proffered by the
other Party in any correspondence or other document, unless the Party to be
bound thereby specifically agrees to such provision in writing.

31.  Amendment.  No change, amendment or modification of any provision of this
     ---------
Agreement will be valid unless set forth in a written instrument signed by the
Party subject to enforcement of such amendment, and in the case of AOL, by an
executive of at least the same standing to the executive who signed the
Agreement.

32.  Further Assurances.  Each Party will take such action (including, but not
     ------------------
limited to, the execution, acknowledgment and delivery of documents) as may
reasonably be requested by any other Party for the implementation or continuing
performance of this Agreement.

33.  Assignment.  With the exception of (a) an assignment or succession of
     ----------
interest relating solely to a change in jurisdiction of incorporation, or (b) of
a Change of Control (other than a Change of Control of Onvia to an Interactive
Service, which shall be governed by Section 5.6 of the main body of this
Agreement):  Onvia will not assign this Agreement or any right, interest or
benefit under this Agreement, without the prior written consent of AOL.  In
either instance, AOL's consent shall not be unreasonably withheld or delayed.
Subject to the foregoing, this Agreement will be fully binding upon, inure to
the benefit of and be enforceable by the Parties hereto and their respective
successors and assigns.

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                                                                  Execution Copy

34.  Construction; Severability.  In the event that any provision of this
     --------------------------
Agreement conflicts with the law under which this Agreement is to be construed
or if any such provision is held invalid by a court with jurisdiction over the
Parties to this Agreement, (i) such provision will be deemed to be restated to
reflect as nearly as possible the original intentions of the Parties in
accordance with applicable law, and (ii) the remaining terms, provisions,
covenants and restrictions of this Agreement will remain in full force and
effect.

35.  Remedies.  Except where otherwise specified, the rights and remedies
     --------
granted to a Party under this Agreement are cumulative and in addition to, and
not in lieu of, any other rights or remedies which the Party may possess at law
or in equity; provided that, in connection with any dispute hereunder, Onvia
will be not entitled to offset any amounts that it claims to be due and payable
from AOL against amounts otherwise payable by Onvia to AOL.

36.  Applicable Law.  Except as otherwise expressly provided herein, this
     --------------
Agreement will be interpreted, construed and enforced in all respects in
accordance with the laws of the Commonwealth of Virginia except for its
conflicts of laws principles.

37.  Export Controls.  Both Parties will adhere to all applicable laws,
     ---------------
regulations and rules relating to the export of technical data and will not
export or re-export any technical data, any products received from the other
Party or the direct product of such technical data to any proscribed country
listed in such applicable laws, regulations and rules unless properly
authorized.

38.  Headings.  The captions and headings used in this Agreement are inserted
     --------
for convenience only and will not affect the meaning or interpretation of this
Agreement.

39.  Counterparts.  This Agreement may be executed in counterparts, each of
     ------------
which will be deemed an original and all of which together will constitute one
and the same document.

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                                                                  Execution Copy

                                   EXHIBIT H
                                  Co-Branding
                                  -----------

Except as otherwise expressly stated in this Agreement or otherwise mutually
agreed by the Parties in writing, each distinct version of the Co-Branded Site
shall be designed as a "cul de sac" site containing no links outside of the Co-
Branded Site other than to (a) the applicable AOL business brand, (b) other AOL
or third party Content determined by AOL, or (c) advertisements permitted under
this Agreement.  Except as otherwise expressly stated in this Agreement or as
otherwise mutually agreed, Onvia shall eliminate the use of "pop-up" windows,
screens and similar types of functionality in connection with the display of
advertising, promotions or sponsorships on the Co-Branded Site. Except as
expressly set forth in this Agreement, AOL shall have the right to change or
modify its generally applicable design guideline templates and co-branding
requirements during the Term, to conform to general changes made to the AOL
Network or portions thereof.   Such customization may, at AOL's discretion,
further include, without limitation:

            (i)               the inclusion of an AOL (or its applicable
                    affiliated business brand, e.g., CompuServe) co-branded
                    toolbar, running the full width of the page, at the top and
                    bottom of each page of the Co-Branded Site, which, among
                    other things, will provide navigation back to the AOL
                    Network, and which shall contain an AOL search box (e.g.,
                    Netfind) and two (2) promotional spaces to be programmed by
                    AOL (the parameters, specifications and format of which such
                    toolbars are further displayed on the mock-up below);

            (ii)              various additional co-branding elements to be
                    specified, as reasonably required for consistency throughout
                    the AOL Network and throughout AOL's network of merchant
                    partners in light of changes to or modifications of the AOL
                    Network (or portions thereof) or AOL's design guideline
                    templates or co-branding requirements during the Term; and

            (iii)             the creation of links in connection with
                    communication services on the Co-Branded Site to the
                    corresponding or equivalent communication services or areas
                    of the Co-Branded Site of the appropriate AOL Property
                    (e.g., chat from the Co-Branded Site of the AOL Service will
                    link to the chat area on the AOL Service).

                                      50
                                 CONFIDENTIAL
[* * *] CONFIDENTIAL TREATMENT REQUESTED.  OMITTED PORTIONS FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.
<PAGE>

                                                                  Execution Copy

                                   EXHIBIT I
                 Third party integration schedule and standards

General:
As set forth in more detail in this Agreement (e.g., in Section 6.4 and Exhibit
A-1), AOL may require Onvia to integrate up to [* * *] additional of AOL's
selected merchant partners and their products and services into the AOL Buying
Directory per month (provided that the Parties initially shall cooperate to
integrate one such merchant partner as a test case).

Schedule:
Onvia shall use commercially reasonable efforts to integrate any third party as
reasonably requested by AOL (and to the extent consistent with the terms hereof,
e.g., with respect to such third party's data exchange standards) within 30 days
of the date of such request, and in any event shall integrate any complying
third party within 60 days of such request.  Onvia shall initially so integrate
(upon AOL's request) [* * *] (e.g., procurement engine, catalog, or similar
functionality), as well as any other complying entities as set forth in more
detail under "Data Exchange" below.

Taxonomy:
Onvia and AOL will mutually agree upon an initial product category taxonomy,
using taxonomy in existence on the Standard Site as of the Effective Date as an
initial starting point, within 30 days of the Effective Date, and shall
cooperate to update such taxonomy on a regular and consistent basis, as mutually
agreed.  Third parties will map from such third parties' proprietary taxonomy to
Onvia taxonomy prior to being integrated into the AOL Buying Directory.  Onvia
will extend taxonomy to incorporate additional items and product types not in
current taxonomy within a reasonable time frame.

Data Exchange:
Third parties which AOL wishes to have integrated into the AOL Buying Directory
shall (it being acknowledged and agreed that this is outside the control of AOL)
meet XML (eXtensible Markup Language), or any other mutually agreed standard
data exchange standards published by Onvia (and the Parties shall so mutually
agree on at least one standard prior to the completion of the AOL Buying
Directory); provided that, in the event they do not meet such standards, Onvia
shall use commercially reasonable efforts to integrate them based on other
reasonable and applicable standards.  Third parties also shall (it being
acknowledged and agreed that this is outside the control of AOL) maintain
appropriate XML (or other applicable) data quality standards as established
through generally applicable standard policy by Onvia; provided that, in the
event they do not meet such standards, Onvia shall use commercially reasonable
efforts to work with such party based on other reasonable and applicable
standards.  Third Parties will retain QA responsibility for all data transferred
for use in the AOL Buying Directory.  Any additional items and product types
will require expanded data to be provided to Onvia by third parties in formats
to be defined based on requirements.  Any data transmissions by third parties to
Onvia should be delivered via FTP and, if mutually agreed, shall meet currently
available compression and encryption standards; provided that, in each case, in
the event they do not meet such standards (FTP, or compression and encryption),
Onvia shall use commercially reasonable efforts to work with such party based on
other reasonable and applicable standards.

Merchant Data Ownership:
Onvia shall be entitled to use any information provided by AOL's merchant
partners in connection herewith only to the extent required for Onvia's
compliance with the terms hereof, and only during the Term.  Notwithstanding
anything to the contrary herein, AOL (and not Onvia) shall own all data and
other information provided by AOL's merchant partners (including without
limitation, any product databases, product information, taxonomy, exchange
information and technology), whether or not used by Onvia during the Term,
subject to any applicable confidentiality provisions herein, and, at the end of
the Term, Onvia shall return any and all such AOL merchant information to AOL
and shall no longer retain any rights to use such AOL merchant information.

                                      51

                                 CONFIDENTIAL
[* * *] CONFIDENTIAL TREATMENT REQUESTED.  OMITTED PORTIONS FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                                                  Execution Copy

                                  Schedule 2.9
                             Competitive Entities*
                             ---------------------

The Parties expressly acknowledge and agree that this schedule only applies to
Section 2.9 and only with respect to Advertising sold by AOL to be served into
the Co-Branded Site, and does not in any way limit AOL's ability to sell
Advertising to any entity, including any competitor of Onvia, anywhere within
the AOL Network (or to any other third party areas, e.g., dr koop).
Notwithstanding anything to the contrary herein, AOL may, on the AOL Network
(including without limitation the B2B Area, the AOL Buying Directory and the AOL
Aggregated RFQ Area), sell Advertisements to, or otherwise promote, any of the
entities listed on this Schedule 2.9 or added hereto from time to time in
accordance with the terms hereof.

    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]
    [* * *]

                                      52
                                 CONFIDENTIAL
[* * *] CONFIDENTIAL TREATMENT REQUESTED.  OMITTED PORTIONS FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.
<PAGE>

                                                                  Execution Copy

*Each of the listed entities shall be considered competitive to Onvia only to
the extent that it maintains an online, small-business targeted presence and
continues to predominantly focus on business-to-business products and services.

Onvia may add a Qualifying Entity (or Qualifying Entities) (as defined below) to
this list once per quarter (to a maximum of [* * *] additional Qualifying
Entities per year during the Term) with thirty (30) days' advance written notice
to AOL, provided, however, that the restrictions applicable to each Qualifying
Entity shall be subject to contractual commitments of AOL in existence as of the
date on which such Qualifying Entity is named by Onvia.  For purposes hereof, a
"Qualifying Entity" shall mean any other company to the extent they primarily
offer products, services and content falling within the Permitted Categories
listed in Exhibit D.

                                      53
                                 CONFIDENTIAL
[* * *] CONFIDENTIAL TREATMENT REQUESTED.  OMITTED PORTIONS FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.
<PAGE>

                                                                  Execution Copy

                                  Schedule 3.4

                              New Customer Targets

                        (listed by each quarter of Term)

<TABLE>
<CAPTION>
       <S>             <C>               <C>              <C>              <C>            <C>           <C>              <C>
        q1             q2                q3               q4               q5             q6             q7              q8
        --             --                --               --               --             --             --              --
            [* * *]        [* * *]          [* * *]          [* * *]           [* * *]        [* * *]        [* * *]         [* * *]

        -----------    -----------       ----------      -----------       -----------    -----------    -----------     -----------

</TABLE>

                                      54
                                 CONFIDENTIAL
[* * *] CONFIDENTIAL TREATMENT REQUESTED.  OMITTED PORTIONS FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.
<PAGE>

                                                                  Execution Copy

                                  Schedule 5.6
                                Onvia Investors

Shareholder
-----------

Glenn Ballman
Rob Ayer
VLG Investments 99
Mohr, Davidow Ventures, L.P.
Mohr, Davidow Ventures V, L.P., as nominee for MDV Entrepreneurs'Network Fund
 II(A), L.P. and MDV Entrepreneurs' Network Fund II(B), L.P.
Stanford University
Internet Capital Group, Inc.
GE Capital Equity Investments Inc.
RIT Ventures I LLC
ATGF II (Amerindo)
Vertex Capital II (Amerindo)
Van Wagoner (Funds + Partners)
Aman Ventures
Credit Suisse First Boston
Robertson Stephens (Bayview I)
Robertson Stephens (Bayview II)
Hambrech & Quist - California
Hambrech & Quist - California
H&Q Employee Venture Fund
Access Technology Partners Fund
Access Technology Partners Brokers Fund
William Blair & Company
E-Offering
Comdisco, Inc.
Madrona Investment Group
Oki Enterprises
Grosvernor Select LP
Jumpstart Group

                                      55
CONFIDENTIALEXECUTIVE EMPLOYMENT AGREEMENT

         THIS EXECUTIVE EMPLOYMENT AGREEMENT (this "Agreement") is made and
entered into as of the 17TH day of January, 2000 (the "Effective Date"), between
PetMed Express, Inc., a Florida corporation, whose principal place of business
is 1441 S.W. 29th Avenue, Pompano Beach, Florida 33069 and any of its successors
or affiliated companies (collectively, "the Company") and Christopher Lloyd, an
individual whose address is 1381 S.W. 2nd, Boca Raton, Florida 33486 ("the
Executive").

                                    RECITALS

         WHEREAS, the Company is a Florida corporation and is principally
engaged in the business of marketing, distributing and selling prescription and
non-prescription pet medications and pet-related products for household pets
("the Business").

         WHEREAS, the Company currently employs the Executive and desires to
continue to employ the Executive and the Executive desires to continue to be
employed by the Company.

         WHEREAS, the Company has established a valuable reputation and goodwill
in its business, with expertise in all aspects of the Business.

         WHEREAS, the Executive, by virtue of the Executive's employment with
the Company, will become familiar with and possessed with the manner, methods,
trade secrets and other confidential information pertaining to the Company's
business, including the Company's client base.

         NOW, THEREFORE, in consideration of the mutual agreements herein made,
the Company and the Executive do hereby agree as follows:

         1. Recitals. The above recitals are true, correct, and are herein
incorporated by reference.

         2. Employment. The Company hereby continues the employment of the
Executive, and the Executive agrees to continue in the employment of the
Company, upon the terms and conditions set forth below.

         3. Authority and Power During Employment Period.

                  a. Duties and Responsibilities. During the term of this
         Agreement, the Executive shall serve as Chief Operating Officer of the
         Company and shall have such responsibilities and duties as are
         customarily undertaken by individuals in similar positions.

                                        1

<PAGE>

                  b. Time Devoted. Throughout the term of the Agreement, the
         Executive shall devote substantially all of the Executive's business
         time and attention to the business and affairs of the Company
         consistent with the Executive's senior executive position with the
         Company, except for reasonable vacations and except for illness or
         incapacity, but nothing in the Agreement shall preclude the Executive
         from engaging in personal business, including as a member of the board
         of directors of related companies, charitable and community affairs,
         provided that such activities do not interfere with the regular
         performance of the Executive's duties and responsibilities under this
         Agreement.

                  c. Additional Responsibilities of Executive. Executive agrees
         to be bound by the Executive's Guidelines, if applicable, a copy of
         which has been provided to the Company (or to the extent that such
         Guidelines have not yet been formulated, at such time as such
         Guidelines are adopted by the Company).

         4. Term. The Term of employment hereunder will commence as of the
Effective Date and terminate 2 thereafter, and such term shall automatically be
extended for each successive year thereafter unless (1) the parties mutually
agree in writing to alter or amend the terms of the Agreement; or (2) one of the
parties exercises its right, pursuant to Section 6 herein, to terminate this
employment relationship.

         5. Compensation and Benefits.

                  a. Base Salary. For all services rendered by the Executive
         pursuant to the terms of this Agreement and in consideration of the
         execution of this Agreement by the Executive, the Executive shall be
         paid a salary, in accordance with the Company's policies from time to
         time for senior executives, at an annual rate of $140,000, subject to
         increase from time to time upon the review and determination of the
         Board of Directors, which review shall be conducted no less frequent
         than annually ("the Base Salary").

                  b. Incentive Compensation. The Executive will be entitled to
         receive such bonuses and options as the Board of Directors may
         determine from time to time.

                  c. Options. The Executive is hereby granted 350,000 stock
         options (the "Options") to purchase shares of the Company's Common
         Stock at an exercise price of $2.75 per share, the fair market value of
         the Company's Common Stock on the trading day immediately preceding the
         Effective Date. Such Options are granted under and subject to the
         Company's 1998 Stock Option Plan and the form of Option and Option
         Agreement attached hereto as collective Exhibit A and incorporated
         herein by such reference. The Options are exercisable for a period of 5
         years from the date of vesting and will vest, subject to Executive's
         continued employment, as follows: (i) 150,000 Options on the Effective
         Date of this Agreement, (ii) 100,000 Options on the first anniversary
         of the Effective Date of this

                                        2

<PAGE>

         Agreement, and (iii) 100,000 Options on the second anniversary of the
         Effective Date of this Agreement. All unexercised Options expire five
         (5) years from the date of vesting.

                  d. Executive Benefits. The Executive shall be entitled to
         participate in all benefit programs of the Company currently existing
         or hereafter made available to executives and/or other salaried
         employees, at the Executive's sole option, including, but not limited
         to, pension and other retirement plans, group life insurance,
         hospitalization, surgical and major medical coverage, sick leave,
         compensation continuation, vacation and holidays, cellular telephone
         and all related costs and expenses, long-term disability, and other
         fringe benefits ("the Executive Benefits").

                  e Vacation. During each fiscal year of the Company, the
         Executive shall be entitled to five (5) weeks of vacation time and to
         utilize such vacation as the Executive shall determine; provided
         however, that the Executive shall evidence reasonable judgment with
         regard to appropriate vacation scheduling.

                  f. Business Expense Reimbursement. During the Term of
         employment, the Executive shall be entitled to receive proper
         reimbursement for all reasonable, out-of-pocket expenses incurred by
         the Executive (in accordance with the policies and procedures
         established by the Company for its senior executive officers) in
         performing services hereunder, provided the Executive properly accounts
         therefor.

                  g. Automobile Expense. The Company shall provide the Executive
         with an automobile of Executive's choice. The Company shall also be
         responsible for all expenses in connection with such automobile
         including, but not limited to, maintenance, insurance and gas.

         6. Termination.

                  a. Death. This Agreement will terminate upon the death of the
         Executive; however, the Executive's Base Salary shall be paid to the
         Executive's designated beneficiary, or, in the absence of such
         designation, to the estate or other legal representative of the
         Executive, for a period of 6 months from and after the date of death at
         the annual rate in effect immediately prior to his death. Other death
         benefits will be determined in accordance with the terms of the
         Company's benefit programs and plans.

                  b. Disability.

                           (1) The Executive's employment will terminate in the
                  event of his disability, upon the first day of the month
                  following the determination of disability as provided below.
                  Following such a termination, the Executive shall be entitled
                  to compensation in accordance with the Company's disability

                                        3

<PAGE>

                  compensation practice for senior executives, including any
                  separate arrangement or policy covering the Executive, but in
                  all events the Executive shall continue to receive his Base
                  Salary, at the annual rate in effect immediately prior to the
                  commencement of disability, for the 6 months following the
                  termination. Any amounts provided for in this Section 6b shall
                  not be offset by other long-term disability benefits provided
                  to the Executive by the Company or Social Security.

                           (2) "Disability," for the purposes of this Agreement,
                  shall be deemed to have occurred if (A) the Executive is
                  unable, by reason of a physical or mental condition, to
                  perform his duties under this Agreement for an aggregate of
                  180 days in any 12-month period or (B) the Executive has a
                  guardian of the person or estate appointed by a court of
                  competent jurisdiction.

                  Anything herein to the contrary notwithstanding, if, following
                  a termination of employment due to disability, the Executive
                  becomes re-employed, whether as an executive or a consultant,
                  any compensation, annual incentive payments or other benefits
                  earned by the Executive from such employment shall not be
                  offset against any compensation continuation due to the
                  Executive hereunder.

                  c. Termination by the Company for Cause.

                           (1) Nothing herein shall prevent the Company from
                  terminating Executive for "Cause," as hereinafter defined. The
                  Executive shall continue to receive compensation only for the
                  period ending with the date of such termination as provided in
                  this Section 6c. Any rights and benefits the Executive may
                  have in respect of any other compensation shall be determined
                  in accordance with the terms of such other compensation
                  arrangements or such plans or programs.

                           (2) "Cause" shall mean (A) committing or
                  participating in an injurious act of fraud, gross neglect,
                  misrepresentation, embezzlement or dishonesty against the
                  Company; (B) committing or participating in any other
                  injurious act or omission wantonly, willfully, recklessly or
                  in a manner which was grossly negligent against the Company;
                  (C) engaging in a criminal enterprise involving moral
                  turpitude; (D) conviction for a felony under the laws of the
                  United States or any state thereof; (E) loss of any state or
                  federal license required for the Executive to perform the
                  Executive's material duties or responsibilities for the
                  Company; or (F) any assignment of this Agreement in violation
                  of Section 14 of this Agreement;

                           (3) Notwithstanding anything else contained in this
                  Agreement, this Agreement will not be deemed to have been
                  terminated for Cause unless

                                        4

<PAGE>

                  and until there shall have been delivered to the Executive a
                  notice of termination stating that the Executive committed one
                  of the types of conduct set forth in Section 6c(2) of this
                  Agreement and specifying the particulars thereof and the
                  Executive shall be given a thirty (30) day period to cure such
                  conduct set forth in Section 6c(2).

                  d. Termination by the Company Other than for Cause.

                           (1) The foregoing notwithstanding, the Company may
                  terminate the Executive's employment for whatever reason it
                  deems appropriate; provided, however, that in the event such
                  termination is not based on Cause, as provided in Section 6c
                  above, the Company may terminate this Agreement upon giving
                  three (3) months' prior written notice. During such 3 month
                  period, the Executive shall continue to perform the
                  Executive's duties pursuant to this Agreement. Notwithstanding
                  any such termination, the Company shall continue to pay to the
                  Executive the Base Salary, Executive Benefits and Automobile
                  Expense he would be entitled to receive under this Agreement
                  for the balance of the Term of this Agreement; and at the end
                  of the 3 month period, the Company shall pay to the Executive
                  a lump sum equal to the Executive's annual Base Salary, as of
                  the date of termination and any options granted to the
                  Executive under this Agreement that are not vested, will vest
                  as of the date of termination.

                           (2) In the event that the Executive's employment with
                  the Company is terminated pursuant to this Section 6d, Section
                  6f or Section 6g, Section 7a of this Agreement and all
                  references thereto shall be inapplicable as to the Executive
                  and the Company.

                  e. Voluntary Termination. If the Executive terminates the
         Executive's employment on the Executive's own volition (except as
         provided in Section 6f and/or Section 6g) prior to the expiration of
         the Term of this Agreement, including any renewals thereof, such
         termination shall constitute a voluntary termination and in such event
         the Executive shall be limited to the same rights and benefits as
         provided in connection with a termination for Cause as provided in
         Section 6c.

                  f. Constructive Termination of Employment. A termination by
         the Company without Cause under Section 6d shall be deemed to have
         occurred upon the occurrence of one or more of the following events
         without the express written consent of the Executive:

                           (1) a significant change in the nature or scope of
                  the authorities, powers, functions, duties or responsibilities
                  attached to Executive's position as described in Section 3, of
                  failure of the Executive to be elected to the Board of
                  Directors or

                                        5

<PAGE>

                           (2) a material breach of the Agreement by the
                  Company; or

                           (3) a material reduction of the Executive's benefits
                  under any employee benefit plan, program or arrangement (for
                  Executive individually or as part of a group) of the Company
                  as then in effect or as in effect on the Effective Date of the
                  Agreement, which reduction shall not be effectuated for
                  similarly situated employees of the Company; or

                           (4) failure by a successor company to assume the
                  obligations under the Agreement.

                           (5) a change in the Executive's principal office to a
                  location outside Palm Beach or Broward County, Florida.

                  Anything herein to the contrary notwithstanding, the Executive
                  shall give written notice to the Board of Directors of the
                  Company that the Executive believes an event has occurred
                  which would result in a Constructive Termination of the
                  Executive's employment under this Section 6f, which written
                  notice shall specify the particular act or acts, on the basis
                  of which the Executive intends to so terminate the Executive's
                  employment, and the Company shall then be given the
                  opportunity, within fifteen (15) days of its receipt of such
                  notice, to cure said event; provided, however, there shall be
                  no period permitted to cure a second occurrence of the same
                  event and in no event will there be any period to cure
                  following the occurrence of two events described in this
                  Section 6f.

                  g. Termination Following a Change of Control.

                           (1) In the event that a Change in Control (as
                  hereinafter defined), of the Company shall occur at any time
                  during the Term hereof, the Executive shall have the right to
                  terminate the Executive's employment under this Agreement upon
                  thirty (30) days written notice given at any time within one
                  (1) year after the occurrence of such event, and such
                  termination of the Executive's employment with the Company
                  pursuant to this Section 6g(1), then, in any such event, such
                  termination shall be deemed to be a Termination by the Company
                  Other than for Cause and the Executive shall be entitled to
                  such Compensation and Benefits as set forth in Subsection 6d
                  of this Agreement.

                           (2) For purposes of this Agreement, a "Change in
                  Control" of the Company shall mean a change in control (A) as
                  set forth in Section 280G of the Internal Revenue Code or (B)
                  of a nature that would be required to be reported in response
                  to Item 1 of the current report on Form 8K, as in effect on
                  the date hereof, pursuant to Section 13 or 15(d) of the
                  Securities

                                        6

<PAGE>

                  Exchange Act of 1934 (the "Exchange Act"); provided that,
                  without limitation, such a change in control shall be deemed
                  to have occurred at such time as:

                                    (A) any "person", other than the Executive,
                           (as such term is used in Section 13(d) and 14(d) of
                           the Exchange Act) is or becomes the "beneficial
                           owner" (as defined in Rule 13d-3 under the Exchange
                           Act), directly or indirectly, of securities of the
                           Company representing fifty percent (50%) or more of
                           the combined voting power of the Company's
                           outstanding securities then having the right to vote
                           at elections of directors; or,

                                    (B) the individuals who at the commencement
                           date of the Agreement constitute the Board of
                           Directors cease for any reason to constitute a
                           majority thereof unless the election, or nomination
                           for election, of each new director was approved by a
                           vote of at least two thirds of the directors then in
                           office who were directors at the commencement of the
                           Agreement; or

                                    (C) there is a failure to elect three or
                           more (or such number of directors as would constitute
                           a majority of the Board of Directors) candidates
                           nominated by management of the Company to the Board
                           of Directors; or

                                    (D) the business of the Company for which
                           the Executive's services are principally performed is
                           disposed of by the Company pursuant to a partial or
                           complete liquidation of the Company, a sale of assets
                           (including stock of a subsidiary of the Company) or
                           otherwise.

                           Anything herein to the contrary notwithstanding, this
                           Section 6g(2) will not apply where the Executive
                           gives the Executive's explicit written waiver stating
                           that for the purposes of this Section 6g(2), a Change
                           in Control shall not be deemed to have occurred. The
                           Executive's participation in any negotiations or
                           other matters in relation to a Change in Control
                           shall in no way constitute such a waiver which can
                           only be given by an explicit written waiver as
                           provided in the preceding sentence.

                           An "Attempted Change in Control" shall be deemed to
                           have occurred if any substantial attempt, accompanied
                           by significant work efforts and expenditures of
                           money, is made to accomplish a Change in Control, as
                           described in subparagraphs (A), (B), (C) or (D) above
                           whether or not such attempt is made with the approval
                           of a majority of the then current members of the
                           Board of Directors.

                                        7

<PAGE>

                           (3) If, within twelve (12) months of any Change in
                  Control of the Company or any Attempted Change in Control of
                  the Company, the Company terminates the employment of the
                  Executive under this Agreement, for any reason other than for
                  Cause as defined in Section 6c, or the Executive's employment
                  is constructively terminated as defined in Section 6g(4),
                  then, in any such event, such termination shall be deemed to
                  be a Termination by the Company Other than for Cause and the
                  Executive shall be entitled to such Compensation and Benefits
                  as set forth in Subsection 6d of this Agreement.

                           (4) Anything in this Section 6g to the contrary
                  notwithstanding, in no event will any action or non-action by
                  the Executive at any time prior to the first anniversary date
                  of the applicable Change in Control or Attempted Change in
                  Control (including any action or non-action prior to the
                  effective date of this Agreement) be deemed consent to any of
                  the events described in this Section 6g.

                           (5) Anything herein to the contrary notwithstanding,
                  if the circumstances giving rise to an Attempted Change in
                  Control are included in those circumstances giving rise to an
                  actual Change in Control the twelve (12) month period under
                  this Section 6 will be deemed to have recommenced on the date
                  the actual Change in Control occurred.

         7.       Covenant Not to Compete and Non-Disclosure of Information.

                  a. Covenant Not to Compete. Except as set forth in Section
         6d(2) of this Agreement, the Executive acknowledges and recognizes the
         highly competitive nature of the Company's business and the goodwill,
         continued patronage, and specifically the names and addresses of the
         Company's Clients (as hereinafter defined) constitute a substantial
         asset of the Company having been acquired through considerable time,
         money and effort. Accordingly, in consideration of the execution of
         this Agreement, the Executive agrees to the following:

                           (1) That during the Restricted Period (as hereinafter
                  defined) and within the Restricted Area (as hereinafter
                  defined), the Executive will not, individually or in
                  conjunction with others, directly or indirectly, engage in any
                  Business Activities (as hereinafter defined), whether as an
                  officer, director, proprietor, employer, partner, independent
                  contractor, investor (other than as a holder solely as an
                  investment of less than one percent (1%) of the outstanding
                  capital stock of a publicly traded corporation), consultant,
                  advisor, agent or otherwise.

                           (2) That during the Restricted Period and within the
                  Restricted Area, the Executive will not, directly or
                  indirectly, compete with the Company by soliciting, inducing
                  or influencing any of the Company's clients which have

                                        8

<PAGE>

                  a business relationship with the Company at the time during
                  the Restricted Period to discontinue or reduce the extent of
                  such relationship with the Company.

                           (3) That during the Restricted Period and within the
                  Restricted Area, the Executive will not (A) directly or
                  indirectly recruit, solicit or otherwise influence any
                  employee or agent of the Company to discontinue such
                  employment or agency relationship with the Company, or (B)
                  employ or seek to employ, or cause or permit any business
                  which competes directly or indirectly with the Business
                  Activities of the Company (the "Competitive Business") to
                  employ or seek to employ for any Competitive Business any
                  person who is then (or was at any time within 6 months prior
                  to the date Executive or the Competitive Business employs or
                  seeks to employ such person) employed by the Company.

                  b. Non-Disclosure of Information. The Executive acknowledges
         that the Company's trade secrets, private or secret processes, methods
         and ideas, as they exist from time to time, customer lists and
         information concerning the Company's products, services, training
         methods, development, technical information, marketing activities and
         procedures, credit and financial data concerning the Company and/or the
         Company's Clients, and (the "Proprietary Information") are valuable,
         special and unique assets of the Company, access to and knowledge of
         which are essential to the performance of the Executive hereunder. In
         light of the highly competitive nature of the industry in which the
         Company's business is conducted, the Executive agrees that all
         Proprietary Information, heretofore or in the future obtained by the
         Executive as a result of the Executive's association with the Company
         shall be considered confidential.

                  In recognition of this fact, the Executive agrees that the
         Executive, during the Restricted Period, will not use or disclose any
         of such Proprietary Information for the Executive's own purposes or for
         the benefit of any person or other entity or organization (except the
         Company) under any circumstances unless such Proprietary Information
         has been publicly disclosed generally or, unless upon written advice of
         legal counsel reasonably satisfactory to the Company, the Executive is
         legally required to disclose such Proprietary Information. Documents
         (as hereinafter defined) prepared by the Executive or that come into
         the Executive's possession during the Executive's association with the
         Company are and remain the property of the Company, and when this
         Agreement terminates, such Documents shall be returned to the Company
         at the Company's principal place of business, as provided in the Notice
         provision (Section 10) of this Agreement.

                  c. Documents. "Documents" shall mean all original written,
         recorded, or graphic matters whatsoever, and any and all copies
         thereof, including, but not limited to: papers; books; records;
         tangible things; correspondence; communica tions; telex messages;
         memoranda; work-papers; reports; affidavits; statements;

                                        9

<PAGE>

         summaries; analyses; evaluations; client records and information;
         agreements; agendas; advertisements; instructions; charges; manuals;
         brochures; publications; directories; industry lists; schedules; price
         lists; client lists; statistical records; training manuals; computer
         printouts; books of account, records and invoices reflecting business
         operations; all things similar to any of the foregoing however
         denominated. In all cases where originals are not available, the term
         "Documents" shall also mean identical copies of original documents or
         non-identical copies thereof.

                  d. Company's Clients. The "Company's Clients" shall be deemed
         to be any persons, partnerships, corporations, professional
         associations or other organizations for whom the Company has performed
         Business Activities.

                  e. Restrictive Period. The "Restrictive Period" shall be
         deemed to be eighteen (18) months following termination of this
         Agreement, except as set forth in Section 6g(2) of this Agreement.

                  f. Restricted Area. The Restricted Area shall be deemed to
         mean within Broward County, Dade County, Monroe County and Palm Beach
         County, Florida and within any other county of any state in which the
         Company is providing service at the time of termination.

                  g. Business Activities. "Business Activities" shall be deemed
         to include any business activities concerning marketing, distributing
         and selling prescription and non-prescription pet medications and
         pet-related products provided by the Company, and any additional
         activities which the Company or any of its affiliates may engage in
         during the 12 months prior to the termination of Executive's
         employment.

                  h. Covenants as Essential Elements of this Agreement. It is
         understood by and between the parties hereto that the foregoing
         covenants contained in Sections 7a and b are essential elements of this
         Agreement, and that but for the agreement by the Executive to comply
         with such covenants, the Company would not have agreed to enter into
         this Agreement. Such covenants by the Executive shall be construed to
         be agreements independent of any other provisions of this Agreement.
         The existence of any other claim or cause of action, whether predicated
         on any other provision in this Agreement, or otherwise, as a result of
         the relationship between the parties shall not constitute a defense to
         the enforcement of such covenants against the Executive.

                  i. Survival After Termination of Agreement. Notwithstanding
         anything to the contrary contained in this Agreement, the covenants in
         Sections 7a and b shall survive the termination of this Agreement and
         the Executive's employment with the Company.

                                       10

<PAGE>

                  j. Remedies.

                           (1) The Executive acknowledges and agrees that the
                  Company's remedy at law for a breach or threatened breach of
                  any of the provisions of Section 7a or b herein would be
                  inadequate and the breach shall be per se deemed as causing
                  irreparable harm to the Company. In recognition of this fact,
                  in the event of a breach by the Executive of any of the
                  provisions of Section 7a or b, the Executive agrees that, in
                  addition to any remedy at law available to the Company,
                  including, but not limited to monetary damages, all rights of
                  the Executive to payment or otherwise under this Agreement and
                  all amounts then or thereafter due to the Executive from the
                  Company under this Agreement may be terminated and the
                  Company, without posting any bond, shall be entitled to
                  obtain, and the Executive agrees not to oppose the Company's
                  request for equitable relief in the form of specific
                  performance, temporary restraining order, temporary or
                  permanent injunction or any other equitable remedy which may
                  then be available to the Company.

                           (2) The Executive acknowledges that the granting of a
                  temporary injunction, temporary restraining order or permanent
                  injunction merely prohibiting the use of Proprietary
                  Information would not be an adequate remedy upon breach or
                  threatened breach of Section 7a or b and conse quently agrees,
                  upon proof of any such breach, to the granting of injunctive
                  relief prohibiting any form of competition with the Company.
                  Nothing herein contained shall be construed as prohibiting the
                  Company from pursuing any other remedies available to it for
                  such breach or threatened breach.

         8. Indemnification. The Executive shall continue to be covered by the
Articles of Incorporation and/or the Bylaws of the Company with respect to
matters occurring on or prior to the date of termination of the Executive's
employment with the Company, subject to all the provisions of Florida and
Federal law and the Articles of Incorporation and Bylaws of the Company then in
effect. Such reasonable expenses, including attorneys' fees, that may be covered
by the Articles of Incorporation and/or Bylaws of the Company shall be paid by
the Company on a current basis in accordance with such provision, the Company's
Articles of Incorporation and Florida law. To the extent that any such payments
by the Company pursuant to the Company's Articles of Incorporation and/or Bylaws
may be subject to repayment by the Executive pursuant to the provisions of the
Company's Articles of Incorporation or Bylaws, or pursuant to Florida or Federal
law, such repayment shall be due and payable by the Executive to the Company
within twelve (12) months after the termination of all proceedings, if any,
which relate to such repayment and to the Company's affairs for the period prior
to the date of termination of the Executive's employment with the Company and as
to which Executive has been covered by such applicable provisions.

         9. Withholding. Anything to the contrary notwithstanding, all payments
required to be made by the Company hereunder to the Executive or the Executive's
estate or

                                       11

<PAGE>

beneficiaries shall be subject to the withholding of such amounts, if any,
relating to tax and other payroll deductions as the Company may reasonably
determine it should withhold pursuant to any applicable law or regulation. In
lieu of withholding such amounts, the Company may accept other arrangements
pursuant to which it is satisfied that such tax and other payroll obligations
will be satisfied in a manner complying with applicable law or regulation.

         10. Notices. Any notice required or permitted to be given under the
terms of this Agreement shall be sufficient if in writing and if sent postage
prepaid by registered or certified mail, return receipt requested; by overnight
delivery; by courier; or by confirmed telecopy, in the case of the Executive to
the Executive's last place of business or residence as shown on the records of
the Company, or in the case of the Company to its principal office as set forth
in the first paragraph of this Agreement, or at such other place as it may
designate.

         11. Waiver. Unless agreed in writing, the failure of either party, at
any time, to require performance by the other of any provisions hereunder shall
not affect its right thereafter to enforce the same, nor shall a waiver by
either party of any breach of any provision hereof be taken or held to be a
waiver of any other preceding or succeeding breach of any term or provision of
this Agreement. No extension of time for the performance of any obligation or
act shall be deemed to be an extension of time for the performance of any other
obligation or act hereunder.

         12. Completeness and Modification. This Agreement constitutes the
entire understanding between the parties hereto superseding all prior and
contemporaneous agreements or understandings among the parties hereto concerning
the Employment Agreement. This Agreement may be amended, modified, superseded or
canceled, and any of the terms, covenants, representations, warranties or
conditions hereof may be waived, only by a written instrument executed by the
parties or, in the case of a waiver, by the party to be charged.

         13. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which shall
constitute but one agreement.

         14. Binding Effect/Assignment. This Agreement shall be binding upon the
parties hereto, their heirs, legal representatives, successors and assigns. This
Agreement shall not be assignable by the Executive but shall be assignable by
the Company in connection with the sale, transfer or other disposition of its
business or to any of the Company's affiliates controlled by or under common
control with the Company.

         15. Governing Law. This Agreement shall become valid when executed and
accepted by Company. The parties agree that it shall be deemed made and entered
into in the State of Florida and shall be governed and construed under and in
accordance with the laws of the State of Florida. Anything in this Agreement to
the contrary notwithstand ing, the Executive shall conduct the Executive's
business in a lawful manner and faithfully comply with applicable laws or
regulations of the state, city or other political subdivision in which the
Executive is located.

         16. Further Assurances. All parties hereto shall execute and deliver
such other instruments and do such other acts as may be necessary to carry out
the intent and purposes of this Agreement.

         17. Headings. The headings of the sections are for convenience only and
shall not control or affect the meaning or construction or limit the scope or
intent of any of the provisions of this Agreement.

         18. Survival. Any termination of this Agreement shall not, however,
affect the ongoing provisions of this Agreement which shall survive such
termination in accordance with their terms.

         19. Severability. The invalidity or unenforceability, in whole or in
part, of any covenant, promise or undertaking, or any section, subsection,
paragraph, sentence, clause, phrase or word or of any provision of this
Agreement shall not affect the validity or enforceability of the remaining
portions thereof.

         20. Enforcement. Should it become necessary for any party to institute
legal action to enforce the terms and conditions of this Agreement, the
successful party will be awarded reasonable attorneys' fees at all trial and
appellate levels, expenses and costs.

         21. Venue. Company and Executive acknowledge and agree that the U.S.
District for the Southern District of Florida, or if such court lacks
jurisdiction, the 15th Judicial Circuit (or its successor) in and for Palm Beach
County, Florida, shall be the venue and exclusive proper forum in which to
adjudicate any case or controversy arising either, directly or indirectly, under
or in connection with this Agreement and the parties further agree that, in the
event of litigation arising out of or in connection with this Agreement in these
courts, they will not contest or challenge the jurisdiction or venue of these
courts.

         22. Construction. This Agreement shall be construed within the fair
meaning of each of its terms and not against the party drafting the document.

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

                                       12

<PAGE>

THE EXECUTIVE ACKNOWLEDGES THAT THE EXECUTIVE HAS READ ALL OF THE TERMS OF THIS
AGREEMENT, UNDERSTANDS THE AGREEMENT, AND AGREES TO ABIDE BY ITS TERMS AND
CONDITIONS.

IN WITNESS WHEREOF, the parties have executed this Agreement as of date set
forth in the first paragraph of this Agreement.

Witness:                                             THE COMPANY:
                                                     PETMED EXPRESS, INC.

                                                     By: /s/ Marc Puleo, M.D.
--------------------------                           ------------------------
                                                     Name: Marc Puleo, M.D.
                                                     Its: President/CEO

Witness:                                             THE EXECUTIVE

                                                     /s/ Christopher Lloyd
--------------------------                           ------------------------
                                                     Christopher Lloyd

                                       13

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