Document:

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                             INDUSTRIAL LEASE AGREEMENT

                             LESSOR: CONTINENTAL, INC.

                          LESSEE:  BIRTHDAY EXPRESS, INC.

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<TABLE>

<S>  <C>                                                                   <C>
TABLE OF CONTENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II
BASIC LEASE PROVISIONS OF THE LEASE AGREEMENT. . . . . . . . . . . . . . . . . . . IV
1.   PARTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
2.   PREMISES, PARKING AND COMMON AREAS. . . . . . . . . . . . . . . . . . . . . . .1
3.   TERM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
4.   RENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
5.   SECURITY DEPOSIT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
6.   USE.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
7.   MAINTENANCE, REPAIRS, ALTERATIONS AND COMMON AREAS SERVICES . . . . . . . . . .5
8.   INSURANCE INDEMNITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
9.   DAMAGE OR DESTRUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
10.  REAL PROPERTY TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
11.  UTILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
12.  ASSIGNMENT AND SUBLETTING . . . . . . . . . . . . . . . . . . . . . . . . . . 11
13.  DEFAULT REMEDIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
14.  CONDEMNATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
15.  BROKER'S FEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
16.  ESTOPPEL CERTIFICATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
17.  LESSOR'S LIABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
18.  SEVERABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
19.  INTEREST ON PAST-DUE OBLIGATIONS. . . . . . . . . . . . . . . . . . . . . . . 17
20.  TIME OF ESSENCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
21.  ADDITIONAL RENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
22.  INCORPORATION OF PRIOR AGREEMENTS; AMENDMENTS . . . . . . . . . . . . . . . . 17
23.  NOTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
24.  WAIVERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
25.  RECORDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
26.  HOLDING OVER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
27.  CUMULATIVE REMEDIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
28.  COVENANTS AND CONDITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . 19
29.  BINDING EFFECT, CHOICE OF LAW . . . . . . . . . . . . . . . . . . . . . . . . 19
30.  ATTORNEY'S FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
31.  LESSOR'S ACCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
32.  AUCTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
33.  SIGNS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
34.  MERGER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
35.  CONSENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
36.  GUARANTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
37.  QUIET POSSESSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
38.  SECURITY MEASURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
39.  EASEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
40.  PERFORMANCE UNDER PROTEST . . . . . . . . . . . . . . . . . . . . . . . . . . 21
41.  AUTHORITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

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42.  CONFLICT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
43.  OFFER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
44.  SUBORDINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
45.  OPTION TO RENEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
PREMISES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
LEGAL DESCRIPTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
HAZARDOUS WASTE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
RENT SCHEDULE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
ADDENDUM 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
ADDENDUM 1A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
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                   BASIC LEASE PROVISIONS OF THE LEASE AGREEMENT
                                        FOR
                                 405 BUSINESS PARK
                                      BETWEEN
               405 BUSINESS PARK LIMITED PARTNERSHIP, AS LESSOR, AND
                         BIRTHDAY EXPRESS, INC., AS LESSEE

The following basic terms of the Lease (herein called the "Basic Lease
Provisions") between Lessor and Lessee are an integral part of and are
incorporated by reference into the within lease:

A.     The Building:    405 Business Park Annex

B.     The Premises:    11220 - 120th Avenue NE, Suite 101

       1.     The suite number of the premises and the floors of the building in
              which the premises are located are as follows:

                        Suite #101
                        1st Floor

       2.     The space within the premises is further described in the Lease,
              including the floor plan attached hereto as Exhibit A, and
              consists of the following approximate number of rentable square
              feet: 16,734 (See Exhibit A)

C.     The Term:

       5 years and 1 months, beginning on December 1, 1995 (the commencement
       date) and ending on December 31, 2000 (the expiration date).

D.     The Base Rent:   See exhibit D

E.     Lessee's Proportionate Share of the Operating Expenses and/or increases
       in Real Estate Taxes of the building, for purposes of determining
       Lessee's annual rental adjustment, is hereby agreed to be forty six and
       57/100 percent (46.57%).

F.     The Security Deposit: $16,986.76 (first months prepaid rent and security
       deposit)

G.     The Space Plans Approval Date: N/A

H.     Lessee's Contribution for Tenant Finish Improvements: N/A

I.     Broker(s):           Pacific Real Estate Partners
       Employing Party:     Continental Real Estate Management Services

J.     Addresses for Notices and Payments:   601 Union Street, Suite 2000
                                             Seattle, WA 98101

              Lessor:   405 Business Park Limited Partnership
                        c/o Continental Real Estate Management Services
                        601 Union Street, Suite 2000
                        Seattle, WA 98101

              Lessee:   Birthday Express, Inc.
                        11220 - 120th Avenue NE, Suite 101
                        Kirkland, WA 98033

Checks Payable To:      Continental Real Estate Management Services
Payment Address:        601 Union Street, Suite 2000

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                                  INDUSTRIAL LEASE

1.     PARTIES.

       This lease, dated ____________19___ for reference purposes only is made
       by and between 405 Business Park Limited Partnership (herein called
       Lessor) and Birthday Express, Inc. (herein called Lessee).

2.     PREMISES, PARKING AND COMMON AREAS.

       2.1    PREMISES.  Lessor hereby leases to Lessee and Lessee leases from
              Lessor for the term, at the rental, and upon all of the conditions
              set forth herein, real property situated in the County of King,
              State of Washington commonly known as 405 Business Park Annex and
              described as 11220-120th Avenue NE, Kirkland, WA 98033 herein
              referred to as the "Premises", as outlined on Exhibit A attached
              hereto, including rights to the common areas as hereinafter
              specified but not including any rights to the roof of the premises
              or to any building in the industrial center.  The premises are a
              portion of a building herein referred to as the "Building".  The
              premises, the building, the common areas, the land upon which the
              same are located, along with all other buildings and improvements
              thereon, are herein collectively referred to as the "Industrial
              Center".  See Exhibit E, Addendum 1A.

       2.2    VEHICLE PARKING.  Parking spaces in the common areas are
              unreserved and unassigned.  However, Lessee shall conform to such
              parking rules and regulations as Lessor, in its reasonable
              discretion, dictates.  Lessee shall have the right to utilize its
              pro-rata share of total designated parking stalls on the
              Industrial Center site.  At the time of lease execution, the
              Lessee's pro-rata share allows the Lessee to utilize approximately
              28 designated parking stalls.  All of the above referenced stalls
              are on a first come, first serve, non reserved basis except for
              five (5) existing, reserved visitor parking stalls adjacent to the
              Lessee's premises.

       2.3    COMMON AREAS - DEFINITION.  The term "Common Areas" is defined as
              all areas and facilities outside the premises and within the
              exterior boundary line of the industrial center that are provided
              and designated by the Lessor from time to time for the general
              non-exclusive use of Lessor, Lessee and of other Lessees of the
              industrial center and their respective employees, suppliers,
              shippers, customers and invitees, including parking areas, loading
              and unloading areas, trash areas, roadways, sidewalks, walkways,
              parkways, driveways and landscaped areas.

       2.4    COMMON AREAS - LESSEE'S RIGHTS.  Lessor hereby grants to Lessee,
              for the benefit of Lessee and its employees, suppliers, shippers,
              customers and invitees, during the term of this lease, the
              non-exclusive right to use, in connection with others entitled to
              such use, the common areas as they exist from time to time,
              subject to any rights, powers, and privileges reserved by Lessor
              under the terms hereof or under the terms of any rules and
              regulations or restrictions governing the use of the industrial
              center.  Under no circumstances shall the right herein granted to
              use the common areas be deemed to include the right to store any
              property, temporarily or permanently, in the common areas.  Any
              such storage shall be permitted only by the prior written consent
              of Lessor or Lessor's designated agent, which consent may be
              revoked at any time.  In the event that any unauthorized storage
              shall occur then Lessor shall have the right, without notice, in
              addition to such other rights and remedies that it may have to
              remove the property and charge the cost to Lessee, which cost
              shall be immediately payable upon demand by Lessor.

       2.5    COMMON AREA - RULES AND REGULATIONS.  Lessor or such other
              person(s) as Lessor may appoint shall have the exclusive control
              and management of the common areas and shall have the right, from
              time to time, to establish, modify, amend and enforce reasonable
              rules and regulations with respect thereto.  Lessee agrees to
              abide by and

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              conform to all such rules and regulations, and to cause its
              employees, suppliers, shippers, customers, and invitees to so
              abide and conform.  Lessor shall not be responsible to Lessee for
              the noncompliance with said rules and regulations by other Lessees
              of the industrial center, other than the remedies provided Lessee
              in this lease.  Lessor shall be responsible for enforcing the
              terms of its leases with other Lessees in the  Industrial Center
              which use the same common areas, so that such use does not
              interfere with this Lessees use of their demised premises or
              common areas provided under this lease.  Lessee acknowledges at
              the time of lease execution, no Rules and Regulations exist on the
              property.  Lessor may install any new Rules and Regulations at its
              discretion, subject to the provisions of this lease.

       2.6    COMMON AREAS - CHANGES.  Lessor shall have the right, in Lessor's
              sole discretion, from time to time:

              (a)    To make changes to the common areas, including, without
              limitation, changes in the location, size, shape and number of
              driveways, entrances, parking spaces, parking areas, loading and
              unloading areas, ingress, egress, direction of traffic, landscaped
              areas and walkways;

              (b)    To close temporarily any of the common areas for
              maintenance purposes so long as reasonable access to the premises
              remains available;

              (c)

              (d)    To add additional buildings and improvements to the common
              areas, but in no event shall Lessee's existing rights be reduced.

              (e)    To use the common areas while engaged in making additional
              improvements, repairs or alterations to the industrial center, or
              any portion thereof;

              (f)    To do and perform such other acts and make such other
              changes in, to or with respect to the common areas and industrial
              center as Lessor may, in the exercise of sound business judgment,
              deem to be appropriate.

              (g)    Lessor shall not make changes which interfere with Lessees
              use of its premises, block visibility to Lessees premises, or
              prevent ingress or egress of lease or its customers.

3.     TERM.

       3.1    TERM.  The term of this lease shall be for Five (5) Years
              commencing on December 1, 1995 and ending on December 31, 2000,
              unless sooner terminated pursuant to any provision hereof.
              See Exhibit E, Addendum 1, Paragraph 2.

       3.2    DELAY IN POSSESSION.  Notwithstanding said commencement date, if
              for any reason Lessor cannot deliver possession of the premises to
              Lessee on said date, Lessor shall not be subject to any liability
              therefor, nor shall such failure affect the validity of this lease
              or the obligations of Lessee hereunder or extend the term hereof,
              but in such case, Lessee shall not be obligated to pay rent or
              perform any other obligation of Lessee under the terms of this
              lease, except as may be otherwise provided in this lease, until
              possession of the premises is tendered to Lessee; provided
              however, that if Lessor shall not have delivered possession of the
              premises within sixty (60), days from said commencement date,
              Lessee may at Lessee's option, by notice in writing to Lessor,
              cancel this lease, in which event the parties shall be discharged
              from all obligations hereunder, provided further, however, that if
              such written notice of Lessee is not received by Lessor, Lessee's
              right to cancel this lease hereunder shall terminate and be of no
              further force or effect.

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       3.3    EARLY POSSESSION.  If Lessee occupies the premises prior to said
              commencement date, such occupancy shall be subject to all
              provisions of this lease, such occupancy shall not advance the
              termination date.

4.     RENT.

       4.1    BASE RENT.    See Exhibit D

       4.2    OPERATING EXPENSES.  In addition to base rent, Lessee shall pay to
              Lessor during the term hereof, as additional rental, Lessee's
              share as hereinafter defined, of all operating expenses during
              each calendar year of the term of this lease, in accordance with
              the following provisions:

              (a)    "Lessee's Share" is defined for purposes of this lease, as
              46.57 percent.

              (b)    "Operating Expenses" is defined, for purposes of this
              lease, as all costs incurred by Lessor, if any, for:

                     (I)    The operation, repair and maintenance, in neat,
                     clean, good order and condition of the following:

                            (aa)   The common areas, including parking areas,
                            loading and unloading areas, trash areas, roadways,
                            sidewalks, walkways, parkways, driveways, landscaped
                            areas, striping, bumpers, irrigation systems.
                            Common areas lighting facilities and fences and
                            gates.
                            (bb)   Trash disposal services.
                            (cc)   Tenant directories.
                            (dd)   Fire detection systems including sprinkler
                            system maintenance and repair.
                            (ee)   Security Services.
                            (ff)   Any other service to be provided by Lessor
                            that is elsewhere in this lease stated to be an
                            "Operating Expense".

                     (II)   Any deductible portion of an insured loss concerning
                     any of the items or matters described in this paragraph
                     4.2.

                     (III)  The cost of the premiums in the liability and
                     property insurance policies to be maintained by Lessor
                     under paragraph 8 hereof.

                     (IV)   The amount of the real property tax to be paid by
                     Lessor under paragraph 10.1 hereof.

                     (V)    The cost of water, gas and electricity to service
                     the common areas.

              (c)    The inclusion of the improvements, facilities and service
              set forth in paragraph 4.2(b)(I) of the definition of operating
              expenses shall not be deemed to impose an obligation upon Lessor
              to either have said improvements or facilities or to provide those
              services unless the industrial center already has the same, Lessor
              already provides the services or Lessor agreed elsewhere in this
              lease to provide the same or some of them.

              (d)    Lessor's obligation to provide the estimate and the actual
              costs is on a best-efforts basis.  The determination of the
              estimated costs is solely within the discretion of the Lessor.
              Nonpayment of the estimated or actual direct costs will provide
              Lessor with the same legal rights with respect to such nonpayment
              that it has with respect to nonpayment of the base rent.  No
              interest or earnings shall be payable by Lessor to Lessee if any
              sums accumulate pursuant to the operating costs paragraph; Lessee
              shall have no interest or ownership with respect to any sums
              accumulated by Lessor.

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5.     SECURITY DEPOSIT.

       Lessee shall deposit with Lessor upon execution hereof Sixteen Thousand,
       Nine Hundred Eighty Six Dollars and 76/100 ($16,986.76); prepaid rent for
       month 1, Seven Thousand Four Hundred Forty Eight and 38/100 ($7,448.38)
       and Nine Thousand Five Hundred Thirty Eight and 38/100 ($9,538.38) as a
       security deposit for Lessee's faithful performance of Lessee's
       obligations hereunder. If Lessee fails to pay rent or other charges due
       hereunder, or otherwise defaults with respect to any provision of this
       lease, Lessor may use, apply or retain all or any portion of said deposit
       for the payment of any, rent or other charge in default or for the
       payment of any other sum to which Lessor may become obligated by reason
       of Lessee's default, or to compensate Lessor for any loss or damage which
       Lessor may suffer thereby.  If Lessor so uses or applies all or any
       portion of said deposit, Lessee shall within ten (10) days after written
       demand therefor deposit cash with Lessor in an amount sufficient to
       restore said deposit to the full amount then required of Lessee.  If the
       monthly rent shall from time to time, increase during the term of this
       lease, Lessee shall, at the time of such increase, deposit with Lessor
       additional money as a security deposit so that the total amount of the
       security deposit held by Lessor shall at all times bear the same
       proportion  to the then current base rent as the initial security deposit
       bears to the initial base rent.  Lessor shall not be required to keep
       said security deposit separate from its general accounts.  If Lessee
       performs all of Lessee's obligations hereunder, said deposit or so much
       thereof as has not theretofore been applied by Lessor, shall be returned,
       without payment of interest or other increment for its use, to Lessee (or
       at Lessor's option, to the last assignee, if any, of Lessee's interest
       hereunder) at the expiration of the term hereof, and after Lessee has
       vacated the premises.  No trust relationship is created herein between
       Lessor and Lessee and Lessee with respect to said security deposit.

6.     USE.

       6.1    USE.  The premises shall be used and occupied only for the
              warehousing, packaging and mailing of merchandise related to the
              Birthday Express, Children's Party Catalog and accessory retail
              operations as are legal within the City of Kirkland zoning code or
              any other use which is reasonably comparable and for no other
              purpose.

       6.2    COMPLIANCE WITH LAW.  Lessee shall at Lessee's expense, promptly
              comply with all applicable statutes, ordinances, rules,
              regulations, orders, covenants, and restrictions of record, and
              requirements of any life insurance underwriters or rating bureaus,
              now in effect or which may hereafter come into effect, whether or
              not they reflect a change in policy from that now existing, during
              the term or any part of the term hereof, relating in any manner to
              the premises and the occupation and use by Lessee of the premises
              and of the common areas.  Lessee shall not use nor permit the use
              of the premises or the common areas in any manner that will tend
              to create waste or a nuisance or shall tend to disturb other
              occupants of the industrial center.

       6.3    CONDITION OF PREMISES.

              (a)    Lessor shall deliver the premises to Lessee clean and free
              of debris on the lease commencement date (unless Lessee is already
              in possession) and Lessor warrants to Lessee that the plumbing,
              lighting, air conditioning, heating, and loading doors in the
              premises shall be in good operating condition on the lease
              commencement date.  In the event that it is determined that the
              warranty has been violated, then it shall be the obligation of
              Lessor, after receipt of written notice from Lessee setting forth
              with specificity the nature of the violation, to promptly, at
              Lessor's sole cost rectify such violation.  Lessee's failure to
              give such written notice to Lessor within thirty (30) days after
              the lease commencement date shall cause the conclusive presumption
              that Lessor has complied with all of Lessor's obligations
              hereunder.  The warranty contained in this paragraph 6.3 (a) shall
              be of no force or effect if prior to the date of this lease,
              Lessee was an owner or occupant of the premises.

              (b)    Except as otherwise provided in this lease, Lessee hereby
              accepts the premises in their condition existing as of the lease
              commencement date or the date that Lessee takes possession of the
              premises, whichever is earlier; subject to all applicable zoning,

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              municipal county and state laws, ordinances and regulations
              governing and regulating the use of the premises, and any
              covenants or restrictions of record, and accepts this lease
              subject thereto and to all matters disclosed thereby and by any
              exhibits attached hereto.  Lessee acknowledges that neither Lessor
              nor Lessor's agent has made any representation or warranty as to
              the present or future suitability of the premises for the conduct
              of Lessee's business.

7.     MAINTENANCE, REPAIRS, ALTERATIONS AND COMMON AREAS SERVICES.

       7.1    LESSOR'S OBLIGATIONS.  Subject to the provisions of paragraph 4.2
              (Operating Expenses), 6 (Use), 7.2 (lessee's Obligations) and 9
              (Damage or Destruction) and except for damage caused by any
              negligent or intentional act or omission of Lessee, Lessee's
              employees, suppliers, shippers, customers, or invitees, in which
              event Lessee shall repair the damage.  Lessor, at Lessor's
              expense, subject to reimbursement pursuant to paragraph 4.2, shall
              keep in good condition and repair the foundations, exterior walls,
              structural condition of interior bearing walls, and roof of the
              premises, as well as the parking lots, walkways, driveways,
              landscaping, fences, signs and utility installations of the common
              areas and all parts thereof as well as providing the services for
              which there is an operating expense pursuant to paragraph 4.2.
              Lessor shall not, however, be obligated to paint the  interior
              surface of exterior walls, nor shall Lessor be required to
              maintain, repair or replace windows, doors or plate glass of the
              premises.  Lessor shall have no obligation to make repairs under
              this paragraph 7.1 until a reasonable time after receipt of
              written notice from Lessee of the need for such repairs.  Lessor
              shall periodically, at its sole discretion, paint the exterior
              building walls.  The cost of any such building maintenance items
              shall be in accordance with all provisions in paragraph 4.2
              (Operating Expenses) of this lease.    Lessor shall not be liable
              for damages or loss of any kind or nature by reason of Lessor's
              failure to furnish any common areas services when such failure is
              caused by accident, breakage, repairs, strikes, lockout or other
              labor disturbances or disputes of any character, or by any other
              cause beyond the reasonable control of Lessor.

       7.2    LESSEE'S OBLIGATIONS.

              (a)    Subject to the provisions of paragraph 6 (Use), 7.1
              (Lessor's Obligations), and 9 (Damage or Destruction) Lessee, at
              Lessee's expense shall keep in good condition and repair the
              premises and every part thereof (whether or not the damaged
              portion of the premises or the means of repairing the same are
              reasonably or readily accessible to Lessee) including, without
              limiting the generality of the foregoing, all plumbing, heating,
              ventilating and air conditioning systems, electrical and lighting
              facilities, and equipment within the premises, fixtures, interior
              walls and interior surfaces of exterior walls, ceilings, windows,
              doors, plate glass, and skylights located within the premises.
              Lessor reserves the right to procure and maintain the ventilating
              and air conditioning system maintenance contract and if Lessor so
              elects, Lessee shall reimburse Lessor upon demand, for the cost
              thereof.

              (b)    If Lessee fails to perform Lessee's obligations under this
              paragraph 7.2 or under any other paragraph of this Lease, Lessor
              may enter upon the premises after ten (10) days prior written
              notice to Lessee (except in the case of emergency, in which no
              notice shall be required), perform such obligations on Lessee's
              behalf and put the premises in good order, condition and repair,
              and the cost thereof together with interest thereon at the maximum
              rate then allowable by law shall be due and payable as additional
              rent to Lessor together with Lessee's next base rent installment.

              (c)    On the last day of the term hereof, or on any sooner
              termination, Lessee shall surrender the premises to Lessor in the
              same condition as received, ordinary wear and tear accepted, clean
              and free of debris.  Any damage or deterioration of the premises
              shall not be deemed ordinary wear and tear if the same could have
              been prevented by good maintenance practices.  Lessee shall repair
              any damage to the premises

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<PAGE>

              occasioned by the installation or removal of Lessee's trade
              fixtures, alterations, furnishings and equipment, notwithstanding
              anything to the contrary otherwise stated in this lease.  Lessee
              shall leave the air lines, power panels, electrical distribution
              systems, lighting fixtures, space heaters, air conditioning,
              plumbing and fencing on the premises in good operating condition.

       7.3    ALTERATIONS AND ADDITIONS.

              (a)    Lessee shall not without Lessor's prior written consent,
              make any alterations, improvements, additions, or utility
              installations on or about the premises, or the industrial center,
              except for nonstructural alterations to the premises not exceeding
              $2,500 in cumulative costs, during the term of this Lease.  In any
              event, whether or not in excess of $2,500 in cumulative cost,
              Lessee shall make no change or alterations to the interior of the
              premises, the exterior of the building nor the industrial center
              without Lessor's prior written consent.  As used in this paragraph
              7.3 the term "Utility Installation" shall mean carpeting, window
              coverings, air lines, power panels, electrical distribution
              systems, lighting fixtures, space heaters, air conditioning,
              plumbing and fencing.  Lessor may require that Lessee remove any
              or all of said alterations, improvements, additions or utility
              installations at the expiration of the term, and restore the
              premises and the industrial center to their prior condition.
              Lessor may require Lessee to, provide Lessor, at Lessee's sole
              cost and expense, a lien and complete bond in an amount equal to
              one and one half times the estimated cost of such improvements, to
              insure Lessor against any liability for mechanic's and
              materialmen's liens and to insure completion of the work.  Should
              Lessee make any alterations, improvements, additions, utility
              installations, without the prior approval of Lessor, Lessor may,
              at any time during the term of this Lease, require that Lessee
              remove any or all of the same.

              (b)    Any alterations, improvements, additions or utility
              installations in or about the premises or the industrial center
              that Lessee shall desire to make and which requires the consent of
              the Lessor shall be presented to Lessor in written form, with
              proposed detailed plans.  If Lessor shall give its consent, the
              consent shall be deemed conditioned upon Lessee acquiring a permit
              to do so from appropriate governmental agencies, the furnishing of
              a copy thereof to Lessor prior to the commencement of the work and
              the compliance by Lessee of all conditions of said permits in a
              prompt and expeditious manner.

              (c)    Lessee shall pay when due, all claims for labor or
              materials furnished or alleged to have been furnished to or for
              Lessee at or for use in the premises, which claims are or may be
              secured by any mechanics or materialmen's lien against the
              premises, or the industrial center, or any interest therein.
              Lessee shall give to Lessor not less than ten (10) days notice
              prior to the commencement of any work in the premises, and Lessor
              shall have the right to post notices of non-responsibility in or
              on the premises or the building as provided by law.  If Lessee
              shall, in good faith, contest the validity of such lien, claim or
              demand, then Lessee shall, at its sole expense defend itself and
              Lessor against the same and shall pay and satisfy any such adverse
              judgment that may be rendered thereon before the enforcement
              thereof against the Lessor or the premises of the industrial
              center, upon the condition that if Lessor shall require, Lessee
              shall furnish to Lessor a surety bond satisfactory to Lessor in an
              amount equal to such contested lien claim or demand indemnifying
              Lessor against liability for the same and holding the premises and
              the industrial center free from the effect of such lien or claim
              in addition, Lessor may require Lessee to pay Lessor's attorneys
              fees and costs in participating in such action if Lessor shall
              decide it is to Lessor's best interest to do so.

              (d)    All alterations, improvements, additions, utility
              installations (whether or not such utility installations
              constitute trade fixtures of Lessee) , which may be made on the
              premises, shall be the property of Lessor and shall remain upon
              and be surrendered with the premises at the expiration of the
              lease term, unless Lessor requires their removal pursuant to
              paragraph 7.3(a) Notwithstanding the provisions of this paragraph
              7.3(d).  Lessee's machinery and equipment other than that which is
              affixed to the premises so that it cannot be removed without
              material damage to the premises and

                                          6

<PAGE>

              other than utility installations, shall remain the property of
              Lessee and may be removed by Lessee subject to the provisions of
              paragraph 7.2.

       7.4    UTILITY ADDITIONS.  Lessor reserves the right to install new or
              additional utility facilities throughout the building and the
              common areas for the benefit of Lessor or Lessee, or any other
              Lessee of the industrial center, including, but not by way of
              limitation, such utilities as plumbing, electrical systems,
              security systems, communication systems, and fire protection and
              detector systems, so long as such installations do not
              unreasonably interfere with Lessee's use of the premises.

8.     INSURANCE INDEMNITY.

       8.1    LIABILITY INSURANCE - LESSEE.  Lessee shall at Lessee's expense
              obtain and keep in force during the term of this lease a policy of
              Combined Single Limit Bodily Injury and Property Damage insurance
              insuring Lessor against any liability arising out of the use,
              occupancy or maintenance of the premises and the industrial
              center.  Such insurance shall be an amount not less than
              $500,000.00 per occurrence.  The policy shall insure performance
              by Lessee of the indemnity provisions of this paragraph 8. The
              limits of said Insurance shall not however limit the liability of
              Lessee hereunder.

       8.2    LIABILITY INSURANCE - LESSOR.  Lessor shall obtain and keep in
              force during the term of this lease a policy of Combined Single
              Limit Bodily injury and Property Damage Insurance insuring Lessor
              but not Lessee against any liability arising out of the ownership,
              use, occupancy or maintenance of the industrial center in an
              amount not less than $500,000.00 per occurrence.

       8.3    PROPERTY INSURANCE.  Lessor shall obtain and keep in force during
              the term of this lease a policy or policies of insurance, covering
              loss or damage to the industrial center improvements, but not
              Lessee's personal property, fixtures, equipment or tenant
              improvements, in an amount not to exceed the full replacement
              value thereof, as the same may exist from time to time, providing
              protection against all perils included within the classification
              of fire, extended coverage, vandalism, malicious mischief,  flood
              (in the event same is required by a lender having a lien on the
              premises) special extended perils ("all risk"' as such term is
              used in the insurance industry), plate glass insurance and such
              other insurance as Lessor deems advisable.  In addition, Lessor
              shall obtain and keep in force, during the term of this Lease, a
              policy of rental value insurance covering a period of one year,
              with loss payable to Lessor, which insurance shall also cover all
              operating expenses for said period in the event that the premises
              shall suffer an insured loss as defined in paragraph 9.1 (g)
              hereof, the pro rata deductible amounts under the casualty
              insurance policies relating to the premises shall be paid by
              Lessee, subject to all provisions in paragraph 9.0 (Damage and
              Destruction) of this lease.  Lessee shall have its rental
              obligation abated in direct proportion to the timing and amount of
              funds received by the Lessor from the Insurance Policy covering
              rental value insurance.

       8.4    PAYMENT OF PREMIUM INCREASE.

              (a)    After the term of this lease has commenced, Lessee shall
              not be responsible for paying Lessee's share of any increase in
              the property insurance premium for the industrial center specified
              by Lessor's insurance carrier as being caused by the use, acts or
              omissions, of any other Lessee of the industrial center, or by the
              nature of such other Lessee's occupancy which create an
              extraordinary or unusual risk.

              (b)    Lessee however shall pay the entirety of any increase in
              the property insurance premium for the industrial center over what
              it was immediately prior to the commencement of the term of this
              lease, if the increase is specified by Lessor's insurance carrier
              as being caused by the nature of Lessee's occupancy or any act or
              omission of Lessee.

       8.5    INSURANCE POLICIES.  Insurance required hereunder shall be in
              companies holding a "General Policyholders Rating of A-1 or AAA or
              better or such other rating as may be

                                          7
<PAGE>

              required by a lender having a lien on the premises, as set forth
              in the most current issue of "Best's Insurance Guide".  Lessee
              shall not do or permit to be done anything which shall invalidate
              the insurance policies carried by Lessor.  Lessee shall deliver to
              Lessor copies of liability insurance policies required under
              paragraph 8.1 or certificates evidencing the existence and amounts
              of such insurance within seven (7) days after the commencement
              date of this Lease.  No such policy shall be cancelable or subject
              to reduction of coverage or other modifications except after
              thirty (30) days prior written notice to Lessor.  Lessee shall, at
              least thirty (30) days prior to the expiration of such policies,
              furnish Lessor with renewals or "binders" thereof.

       8.6    WAIVER OF SUBROGATION.  Lessee and Lessor each hereby release and
              relieve the other, and waive their entire right of recovery
              against the other for loss or damage arising out of or incident to
              the perils insured against which perils occur in, on or about the
              premises whether due to the negligence of Lessor or Lessee or
              their agents, employees contractors and/or invitees.  Lessee and
              Lessor shall, upon obtaining the policies of insurance required
              give notice to the insurance carrier or carriers that the
              foregoing mutual waiver of subrogation is contained in this Lease.

       8.7    INDEMNITY.  Lessee shall indemnify and hold harmless Lessor from
              and against any and all claims arising from Lessee's use of the
              industrial center, or from the conduct of Lessee's business or
              from any activity, work or things done, permitted or suffered by
              Lessee, in or about the premises or elsewhere and shall further
              indemnify and hold harmless Lessor from and against any and all
              claims arising from any breach or default in the performance of
              any obligation on Lessee's part to be performed under the terms of
              this Lease, or arising from any act or omission of Lessee, or any
              of Lessee's agents, contractors, or employees, and from and
              against all costs, attorney fees, expenses and liabilities
              incurred in the defense of any such claim or any action or
              proceeding brought thereon, and in case any action or proceeding
              be brought against Lessor by reason of any such claim, Lessee upon
              notice from Lessor shall defend the same at Lessee's expense by
              counsel reasonably satisfactory to Lessor and Lessor shall
              cooperate with Lessee in such defense.  Lessee, as a material part
              of the consideration to Lessor, hereby assumes all risk of damage
              to property of Lessee or injury to persons, in, upon or about the
              industrial center arising from any cause and Lessee hereby waives
              all claims in respect thereof against Lessor.

       8.8    EXEMPTION OF LESSOR FROM LIABILITY.  Lessee hereby agrees that
              Lessor shall not be liable for injury to Lessee's business or any
              loss of income therefrom or for damage to the goods, wares,
              merchandise or other property of Lessee, invitees, customers, or
              any other non employee persons of Lessee in or about the premises
              or the industrial center, nor shall Lessor be liable for injury to
              the person of Lessee, Lessee's employees, agents or contractors,
              whether such damage or injury is caused by or results from fire,
              steam, electricity, gas, water or rain, or from the breakage,
              leakage obstruction or other defects of pipes, sprinklers, wires,
              appliances, plumbing, air conditioning or lighting fixtures, or
              from any other cause, whether said damage or injury results from
              conditions, arising upon the premises or upon other portions of
              the industrial center, or from other sources or places and
              regardless of whether the cause of such damage or injury or the
              means of repairing the same is inaccessible to Lessee.  Lessor
              shall not be liable for any damages arising from any act or
              neglect of any other Lessee, occupant or user of the industrial
              center, nor from the failure of Lessor to enforce the provisions
              of any other lease of the industrial center.

9.     DAMAGE OR DESTRUCTION.

       9.1    DEFINITIONS.

              (a)    "Premises, Partial Damage" shall mean if the premises are
              damaged or destroyed to the extent that the cost of repair is less
              than fifty percent of the then replacement cost of the premises.

                                          8
<PAGE>

              (b)    "Premises, Total Destruction" shall mean if the premises
              are damaged or destroyed to the extent that the cost of repair is
              fifty percent or more of the then replacement cost of the
              premises.

              (c)    "Premises, Building Partial Damage" shall mean if the
              building of which the premises are a part is damaged or destroyed
              to the extent that the cost to repair is less than fifty percent
              of the then replacement cost of the building.

              (d)    "Premises, Building Total Destruction" shall mean if the
              building of which the premises are a part is damaged or destroyed
              to the extent that the cost to repair is fifty percent or more of
              the then replacement cost of the building.

              (e)    "Industrial Center Buildings" shall mean all of the
              buildings on the industrial center site.

              (f)    "Industrial Center Buildings, Total Destruction" shall mean
              if the industrial center buildings are damaged or destroyed to the
              extent that the cost of repair is fifty percent or more of the
              then replacement cost of the industrial center buildings.

              (g)    "Insured Loss" shall mean damage or destruction which was
              covered by an event required to be covered by the insurance
              described in paragraph 8.  The fact that an insured loss has a
              deductible amount shall not make the loss an uninsured loss.

              (h)    "Replacement Cost" shall mean the amount of money necessary
              to be spent in order to repair or rebuild the damaged area to the
              condition that existed immediately prior to the damage occurring
              excluding all improvements made by Lessees.

       9.2    PREMISES PARTIAL DAMAGE; PREMISES BUILDING PARTIAL DAMAGE.

              (a)    Insured Loss.  Subject to the provisions of paragraph 9.4
              and 9.5, if at any time during the term of this lease there is
              damage which is an insured loss and which falls into the
              classification of either premises damage or premises building
              partial damage, then Lessor shall at Lessor's expense repair such
              damage to the premises, but not Lessee's fixtures, equipment or
              tenant improvements as soon as reasonably possible and this lease
              shall continue in full force and effect.

              (b)    Uninsured Loss.  Subject to the provisions of paragraph 9.4
              and 9.5, if at any time during the term of this Lease, there is
              damage which is not an insured loss, and which falls within the
              classification of premises partial damage or premises building
              partial damage, unless caused by a negligent or willful act of
              Lessee (in which event Lessee shall make the repairs at Lessee's
              expense), which damage prevents Lessee from using the premises,
              Lessor may at Lessor's option either (1) repair such damage as
              soon as reasonably possible, at Lessor's expense, in which event
              this lease shall continue in full force and effect, or (2) give
              written notice to Lessee within thirty (30) days after the date of
              the occurrence of such damage of Lessor's intention to cancel and
              terminate this lease as of the date of the occurrence of such
              damage.  In the event Lessor elects to give such notice of
              Lessor's intention to cancel and terminate this Lease, Lessee
              shall have the right within ten (10) days after the receipt of
              such notice to give written notice to Lessor of Lessee's intention
              to repair such damage at Lessee's expense, without reimbursement
              from Lessor in which event this lease shall continue in full force
              and effect and Lessee shall proceed to make such repairs as soon
              as reasonably possible.  If Lessee does not give such notice
              within such Ten (10) day period this lease shall be canceled and
              terminated as of the date of the occurrence of such damage.

       9.3    PREMISES TOTAL DESTRUCTION; PREMISES BUILDING TOTAL DESTRUCTION;
              INDUSTRIAL CENTER BUILDINGS TOTAL DESTRUCTION.

              (a)    Subject to the provisions of paragraph 9.4 and 9.5 if at
              any time during the term of this lease there is damage whether or
              not it is an insured loss, and which falls into the
              classifications of either (1) premises total destruction, or (2)
              premises building total destruction or (3) industrial center
              buildings total destruction, then Lessor may at

                                          9
<PAGE>

              Lessor's option either (1) repair such damage or destruction, but
              not Lessee's fixtures, equipment or tenant improvements, as soon
              as reasonably possible at Lessor's expense, and this lease shall
              continue in full force and effect, or (2) give written notice to
              Lessee within thirty (30) days after the date of occurrence of
              such damage of Lessor's intention to cancel and terminate this
              Lease, in which case this lease shall be canceled and terminated
              as of the date of the occurrence of such damage.

       9.4    DAMAGE NEAR END OF TERM.

              (a)    Subject to paragraph 9.4(b), if at any time during the last
              six months of the term of this Lease, there is substantial damage,
              whether or not an insured loss; which falls within the
              classification of premises partial damage, Lessor may at Lessor's
              option cancel and terminate this lease as of the date of
              occurrence of such damage by giving written notice to Lessee of
              Lessor's election to do so within thirty (30) days after the date
              of occurrence of such damage.

              (b)    Notwithstanding paragraph 9.4 in the event that Lessee has
              an option to extend or renew this Lease, and the time within which
              said option may be exercised has not yet expired.  Lessee shall
              exercise such option, if it is to be exercised at all, no later
              than twenty (20) days after the occurrence of an insured Loss
              failing without the classification of premises partial damage
              during the last six (6) months of the term of this Lease.  If
              Lessee duly exercises such option during said twenty (20) day
              period, Lessor shall at Lessor's expense, repair such damage, but
              not Lessee's fixtures, equipment or tenant improvements; as soon
              as reasonably possible and this lease shall continue in full force
              and effect.  If Lessee fails to exercise such option during said
              twenty (20) day period, then Lessor may at Lessor's option
              terminate and cancel this lease as of the expiration of said
              twenty (20) day period by giving written notice to Lessee of
              Lessor's selection to do so within ten (10) days after the
              expiration of said twenty (20) day period, notwithstanding any
              term or provision in the grant of option to the contrary.

       9.5    ABATEMENT OF RENT; LESSEE'S REMEDIES.

              (a)    In the event Lessor repairs or restores the premises
              pursuant to the provisions of this paragraph 9, the rent payable
              hereunder for the period during which such damage, repair or
              restoration continues shall be abated in proportion to the degree
              to which Lessee's use of the premises is impaired.  Except for
              abatement of rent, if any, Lessee shall have no claim against
              Lessor for any damage suffered by reason of any such damage,
              destruction, repair or restoration.

              (b)    If Lessor shall be obligated to repair or restore the
              premises under the provisions of this paragraph 9 and shall not
              the such repair or restoration within ninety (90) days after such
              obligation shall accrue, Lessee may at Lessee's option cancel and
              terminate this lease by giving Lessor written notice of Lessee's
              election to do so at any time prior to the commencement of such
              repair or restoration.  In such event this lease shall terminate
              as of the date of such notice.

       9.6    TERMINATION - ADVANCE PAYMENTS.  Upon termination of this lease
              pursuant to this paragraph 9, an equitable adjustment shall be
              made concerning advance rent and any advance payments made by
              Lessee to Lessor.  Lessor shall, in addition, return to Lessee so
              much of Lessee's security deposit as has not theretofore been
              applied by Lessor.

       9.7    WAIVER.  Lessor and Lessee waive the provisions of any statute
              which relate to termination of leases when leased property is
              destroyed and agree that such event shall be governed by the terms
              of this Lease.

                                          10

<PAGE>

10.    REAL PROPERTY TAXES.

       10.1   PAYMENT OF TAXES.  Lessor shall pay the real property tax as
              defined in paragraph 10.3 applicable to the industrial center
              subject to reimbursement by Lessee of Lessee's share of such taxes
              in accordance with the provisions of paragraph 4.2, except as
              otherwise provided in paragraph 10.2.

       10.2   ADDITIONAL IMPROVEMENTS.  Lessee shall not be responsible for
              paying Lessee's share of any increase in real property tax
              specified in the tax assessor's records and work sheets as being
              caused by additional improvements placed upon the industrial
              center by other Lessees or by Lessor for the exclusive enjoyment
              of such other Lessees.  Lessee shall, however, pay to Lessor at
              the time that operating expenses are payable under paragraph
              4.2(c) the entirety of any increase in real property tax, if
              assessed solely by reason of additional improvements placed upon
              the premises by Lessee or at Lessee's request.

       10.3   DEFINITION OF "REAL PROPERTY TAX".  As used herein, the term "real
              property tax" shall include any term of real estate tax or
              assessment, general, special, ordinary or extraordinary, and any
              license fee, commercial rental tax, improvement bond or bonds,
              levy or tax (other than inheritance, personal income or estate
              taxes) imposed on the industrial center or any portion thereof by
              any authority having the direct or indirect power to tax,
              including any city, county, state or federal government, or any
              school, agricultural, sanitary, fire, street, drainage or other
              improvement district, thereof, as against any legal or equitable
              interest of Lessor in the industrial center or in any portion
              thereof, as against Lessor's right to rent or other income
              therefrom, and as against Lessor's business of leasing the
              industrial center.

       10.4   JOINT ASSESSMENT.  If the industrial center is not separately
              assessed, Lessee's share of the real property tax liability shall
              be an equitable proportion of the real property taxes for all of
              the land and improvements included within the tax parcel assessed,
              such proportion to be determined by Lessor from the respective
              valuations assigned in the assessor's work sheets or such other
              information as may be reasonably available.  Lessor's reasonable
              determination thereof in good faith, shall be conclusive.  Lessor
              acknowledges that the Industrial Center consists of two adjacent
              tax parcels (#33-26-05-9031 1700 33 2605, 50 1700).  The two
              Industrial Center parcels are separately assessed.

       10.5   PERSONAL PROPERTY TAXES.

              (a)    Lessee shall pay prior to delinquency all taxes assessed
              against and levied upon trade fixtures, furnishings, equipment and
              all other personal property of Lessee contained in the premises or
              elsewhere.  When possible, Lessee shall cause said trade fixtures,
              furnishings, equipment and all other personal property to be
              assessed and billed separately from the real property of Lessor.

              (b)    If any of Lessee's said personal property shall be assessed
              with Lessor's real property, Lessee shall, pay to Lessor the taxes
              attributable to Lessee within ten (10) days after receipt of a
              written statement setting forth the taxes applicable to Lessee's
              property.

11.    UTILITIES.

       Lessee shall pay for all water, gas, heat, light, power, telephone and
       other utilities and services supplied to the premises, together with any
       taxes thereon if any such services are not separately metered to the
       premises.  Lessee shall pay at Lessor's option, either Lessee's share of
       a reasonable proportion to be determined by Lessor of all charges jointly
       metered with other premises in the building.

12.    ASSIGNMENT AND SUBLETTING.

                                          11

<PAGE>

       12.1   LESSOR'S CONSENT REQUIRED.  Lessee shall not voluntarily or by
              operation of law assign, transfer, mortgage, sublet, or otherwise
              transfer or encumber all or any part of Lessee's interest in the
              lease or in the premises, without Lessor's prior written consent,
              which Lessor shall not unreasonably withhold.  Lessor shall
              respond to Lessee's request for consent hereunder in a timely
              manner and any attempted assignment, transfer, mortgage,
              encumbrance or subletting without such consent shall be void, and
              shall constitute a breach of this lease without the need for
              notice to Lessee under paragraph 13.1.

       12.2   LESSEE AFFILIATE.  Notwithstanding the provisions of paragraph
              12.1 thereof, Lessee may assign or sublet the premises, or any
              portion thereof, without Lessor's consent, to any corporation
              which controls, is controlled by or is under common control with
              Lessee, or to any corporation resulting from the merger or
              consolidation with Lessee, or to any person or entity which
              acquires all the assets of Lessee as a going concern of the
              business that is being conducted on the premises, all of which are
              referred to as "Lessee Affiliate" provided that before such
              assignment shall be effective said assignee shall assume, in full;
              the obligations of Lessee under this Lease.  Any such assignment
              shall not in any way affect or limit the liability of Lessee under
              the terms of this lease even if after such assignment or
              subletting the terms of this lease are materially changed or
              altered without the consent of Lessee, the consent of whom shall
              not be necessary.

       12.3   TERMS AND CONDITIONS OF ASSIGNMENT.  Regardless of Lessor's
              consent, no assignment shall release Lessee of Lessee's
              obligations hereunder or after the primary liability of Lessee to
              pay the base rent and Lessee's share of operating expenses, and to
              perform all other obligations to be performed by Lessee hereunder.
              Lessor may accept rent from any person other than Lessee pending
              approval or disapproval of such assignment.  Neither a delay in
              the approval or disapproval of such assignment nor the acceptance
              of rent shall constitute a waiver or estoppel of Lessor's right to
              exercise its remedies for the breach of any of the terms or
              conditions of this paragraph 12 or this Lease.  Consent to one
              assignment shall not be deemed consent to any subsequent
              assignment in the event of default by any assignee of Lessee or
              any successor of Lessee, in the performance of any of the terms
              hereof.  Lessor may proceed directly against Lessee without the
              necessity of exhausting remedies against said assignee.  Lessor
              may consent to subsequent assignments of this lease or amendments
              or modifications of this lease with assignees of Lessee, without
              notifying Lessee, or any successor of Lessee, and without
              obtaining its or their consent thereto and such action shall not
              relieve Lessee of liability under this Lease.

       12.4   TERMS AND CONDITIONS APPLICABLE TO SUBLETTING.  Regardless of
              Lessor's consent, the following terms and conditions shall apply
              to any subletting by Lessee of all or any part of the premises and
              shall be included in subleases.

              (a)    Lessee hereby assigns and transfers to Lessor all of
              Lessee's interest in all rentals and income arising from any
              sublease heretofore or hereafter made by Lessee, and Lessor may
              collect such rent and income and apply same toward Lessee's
              obligations under this Lease, provided, however, that until a
              default shall occur in the performance of Lessee's obligations
              under this Lease, Lessee may receive, collect and enjoy the rents
              accruing under such sublease.  Lessor shall not by reason of this
              or any other assignment of such sublease to Lessor nor by reason
              of the collection of the rents from sublessee, be deemed liable to
              the sublessee for any failure of Lessee to perform and comply with
              any of Lessee's obligations to such sublease under such sublease.
              Lessee hereby irrevocably authorizes and directs any such
              sublessee, upon receipt of a written notice from Lessor stating
              that default exists in the performance of Lessee's obligations
              under this Lease, to pay to Lessor the rents due and to become due
              under the sublease.  Lessee agrees that such sublessee shall have
              the right to rely upon any such statement and request from Lessor
              and that such sublessee shall pay such rents to Lessor without any
              obligation or right to inquire as to whether such default exists
              and notwithstanding any notice from or claim from Lessee to the
              contrary.  Lessee shall have no right or claim against such
              sublessee or Lessor for any such rents so paid by said sublessee
              to Lessor.

                                          12

<PAGE>

              (b)    No sublease entered into by Lessee shall be effective
              unless and until it has been approved in writing by Lessor in
              entering into any sublease.  Lessee shall use only such form of
              sublease as is satisfactory to Lessor and once approved by Lessor,
              such sublease shall not be changed or modified without Lessor's,
              prior written consent.  Any sublease shall, by reason of entering
              into a sublease under this lease, be deemed, for the benefit of
              Lessor, to have assumed and agreed to conform and comply with each
              and every obligation herein to be performed by Lessee other than
              such obligations as are contrary to or inconsistent with
              provisions contained in a sublease to which Lessor has expressly
              consented in writing.

              (c)    If Lessee's obligations under this lease have been
              guaranteed by third parties, then a sublease, and Lessor's consent
              thereto, shall not be effective unless said guarantees give their
              written consent to such sublease and the terms thereof.

              (d)    The consent by Lessor to any subletting shall not release
              Lessee from its obligations or after the primary liability of
              Lessee to pay the rent and perform and comply with all of the
              obligations of Lessee to be performed under this Lease.

              (e)    The consent by Lessor to any subletting shall not
              constitute a consent to any subsequent subletting by Lessee or to
              any assignment or subletting by the sublessee.  However, Lessor
              may consent to subsequent subletting and assignments of the
              sublease or any amendments or modifications thereto without
              notifying Lessee or anyone else liable on the lease or sublease
              and without containing their consent and such action shall not
              relieve such persons from liability.

              (f)    In the event of any default under this Lease, Lessor may
              proceed directly against Lessee, any guarantors or any one else
              responsible for the performance of this Lease, including the
              sublessee, without first exhausting Lessor's remedies against any
              other person or entity responsible therefor to Lessor or any
              security held by Lessor or Lessee.

              (g)    In the event Lessee shall default in the performance of its
              obligations under this Lease, Lessor at its option and without any
              obligation to do so, may require any sublease to attorn to Lessor,
              in which event Lessor shall undertake the obligation of Lessee
              under such sublease from the time of the exercise of said option
              to the termination of such sublease, provided, however, Lessor
              shall not be liable for any prepaid rents or security deposit paid
              by such sublessee to Lessee or for any other prior defaults of
              Lessee under such sublease.

              (h)    Each and every consent required of Lessee under a sublease
              shall also require the consent of Lessor.

              (i)    No sublease shall further assign or sublet all or any part
              of the premises without Lessor's prior written consent.

              (j)    Lessor's written consent to any subletting of the premises
              by Lessee shall not constitute an acknowledgment that no default
              then exists under this lease of the obligations to be performed by
              Lessee nor shall such consent be deemed a waiver of any then
              existing default except as may be otherwise stated by Lessor at
              the time.

              (k)    With respect to any subletting to which Lessor has
              consented, Lessor agrees to deliver a copy of any notice of
              default by Lessee to the sublessee.  Such sublessee shall have the
              right to cure a default of Lessee within ten (10) days after
              service of said notice of default upon such sublessee, and the
              sublessee shall have a right of reimbursement and offset from and
              against Lessee for any such defaults cured by the sublessee.

       12.5   ATTORNEY'S FEES.  In the event, Lessee shall assign or sublet the
              premises or request the consent of Lessor to any assignment or
              subletting or if Lessee shall request the consent of Lessor for
              any act Lessee proposes to do then Lessee shall pay Lessor's

                                          13

<PAGE>

              reasonable attorney's fees incurred in connection therewith, such
              attorney's fees not to exceed $350.00 for each such request.

13.    DEFAULT REMEDIES.

       13.1   DEFAULT.  The occurrence of any one or more of the following
              events shall constitute a material default of this lease by
              Lessee.

              (a)    The vacating or abandonment of the premises by Lessee

              (b)    The failure by Lessee to make any payment of rent or any
              other payment required to be made by Lessee hereunder, as and when
              due, where such failure shall continue for a period of three (3)
              days after written notice thereof from Lessor to Lessee.  In the
              event that Lessor serves Lessee with a Notice to Pay Rent or Quit
              pursuant to applicable Unlawful Detainer statutes such Notice to
              Pay Rent or Quit shall also constitute the notice required by this
              subparagraph.

              (c)    Except as otherwise provided in this Lease, the failure by
              Lessee to observe or perform any of the covenants, conditions or
              provisions of this lease to be observed or performed by Lessee,
              other than described in paragraph (b) above, where such failure
              shall continue for a period of ten (10) days after written notice
              thereof from Lessor to Lessee, provided, however, that if the
              nature of Lessee's noncompliance is such that more than ten (10)
              days are reasonable required for its cure, then Lessee shall not
              be deemed to be in default if Lessee commenced such cure within
              said ten (10) day period and thereafter obligingly prosecutes such
              cure to completion.  To the extent permitted by law, such ten (10)
              day notice shall constitute the sole and exclusive notice required
              to be given to Lessee under applicable Unlawful Detainer statutes.

              (d)    (1) The making by Lessee of any general arrangement or
              general assignment for the benefit of creditors, (2) Lessee
              becomes a "debtor" as defined in 11 U.S.C. & 101 or any successor
              statute thereto, (unless, in the case of a petition filed against
              Lessee, the same is dismissed within sixty (60) days, (3) the
              appointment of a trustee or receiver to take possession of
              substantially all of Lessee's assets located at the premises, or
              of Lessee's interest in this Lease, where possession is not
              restored to Lessee within thirty (30) days; or (4) the attachment,
              execution or other judicial seizure of substantially all of
              Lessee's assets located at the premises or of Lessee's interest in
              this lease, where such seizure is not discharged within thirty
              (30) days.  In the event that any provision of this paragraph 13.1
              (d) is contrary to any applicable law, such provision shall be of
              no force or effect.

              (e)    The discovery by Lessor that any financial statement given
              to Lessor by Lessee, any assignee of Lessee, any subtenant of
              Lessee, any successor in interest of Lessee or any guarantor of
              Lessee's obligation hereunder was materially false.

       13.2   REMEDIES.  In the event of any such material default by Lessee,
              Lessor may at any time thereunder, with or without notice or
              demand and without limiting Lessor in the exercise of any right or
              remedy which Lessor may have by reason of such default.  Lessee
              shall not be In default of this lease by its act of exercising its
              early lease termination option - see Exhibit E.

              (a)    Terminate Lessee's right to possession of the premises by
              any lawful means, in which case this lease and the term hereof
              shall terminate and Lessee shall immediately surrender possession
              of the premises to Lessor.  In such event Lessor shall be entitled
              to recover from Lessee all damages incurred by Lessor by reason of
              Lessee's default including, but not limited to, the cost of
              recovering possession of the premises, expenses of reletting,
              including necessary renovation and alteration of the premises,
              reasonable attorney's fees, and any real estate commission
              actually paid, the worth at the time of award by the court having
              jurisdiction thereof of the amount by which the unpaid rent for
              the balance of the term after the time of such award exceeds the
              amount  of such rental loss for the same period that Lessee proves
              could be reasonably

                                          14

<PAGE>

              avoided, that portion of the leasing commission paid by Lessor
              pursuant to paragraph 15 applicable to the unexpired term of this
              Lease.

              (b)    Maintain Lessee's right to possession in which case this
              lease shall continue in effect whether or not Lessee shall have
              vacated or abandoned the premises, in such event Lessor shall be
              entitled to enforce all of Lessor's rights and remedies under this
              Lease, including the right to recover the rent as it becomes due
              hereunder.

              (c)    Pursue any other remedy now or hereafter available to
              Lessor under the laws or judicial decisions of the state wherein
              the premises are located.  Unpaid installments of rent and other
              unpaid monetary obligations of Lessee under the terms of this
              lease shall bear interest from the date due at the maximum rate
              then allowable by law.

       13.3   DEFAULT BY LESSOR.  Lessor shall not be in default unless Lessor
              fails to perform obligations required of Lessor within a
              reasonable time, but in no event later than  ten (10) days after
              written notice by Lessee to Lessor and to the holder of any first
              mortgage or deed of trust covering the premises whose name and
              address shall have theretofore been furnished to Lessee in writing
              specifying wherein Lessor has failed to perform such obligation,
              provided, however, that if the nature of Lessor's obligation is
              such that more than  ten (10) days are required for performance
              then Lessor shall not be in default if Lessor commences
              performance within such  ten (10) day period and thereafter
              diligently prosecutes the same to completion.  In the event of any
              material default by Lessor not capable of reasonable cure in the
              time and manner specified above, Lessee may at any time thereunder
              with or without notice or demand and without limiting Lessee in
              the exercise of any right or remedy which Lessee may have by
              reason of such default:

                     (a)    Terminate the lease and surrender the premises to
              Lessor.  In such event, Lessee shall be entitled to recover from
              Lessor all damages incurred by Lessee by reason of Lessor's
              default;

              or,

                     (b)    In the event any condition arises in, or damage
              exists to the premises, which condition or damage is within
              Lessor's duty to maintain, correct or repair but Lessor falls to
              or is unable or unwilling to do so and for which immediate action
              is necessary to prevent potential injury to Lessee's customers,
              employees, property, or business, Lessee may, but shall not be
              required, make such repairs or perform such maintenance
              immediately, without notice to Lessor.  Lessor shall reimburse
              Lessee for the reasonable and necessary costs or such repairs or
              maintenance within thirty (30) days after Lessee's demand for
              reimbursement submitted to Lessor with an itemized statement of
              the repairs and charges.

       13.4   LATE CHARGES.  Lessee hereby acknowledges that late payment by
              Lessee to Lessor of base rent, Lessee's share of operating
              expenses, or other Sums due hereunder will cause Lessor to incur
              costs not contemplated by this lease, the exact amount of which
              will be extremely difficult to ascertain.  Such costs include, but
              are not limited to, processing and accounting charges, and late
              charges which may be imposed on Lessor by the terms of any
              mortgage or trust deed covering the property.  Accordingly, if any
              installment of base rent.  operating expenses, or any other sum
              due from Lessee shall not be received by Lessor or Lessor's
              designee within ten (10) days after such amount shall be due,
              then, without any requirement for notice to Lessee, Lessee shall
              pay to Lessor a late charge equal to six percent (6%) of such
              overdue amount.  The parties hereby agree that such late charge
              represents a fair and reasonable estimate of the costs Lessor will
              incur by reason of late payment by Lessee.  Acceptance of such
              late charge by Lessor shall in no event constitute a waiver of
              Lessee's default with respect to such overdue amount, nor prevent
              Lessor from exercising any of the other rights and remedies
              granted hereunder.  In the event that a late charge is payable
              hereunder, whether or not collected, for three (3) consecutive
              installments of any of the aforesaid monetary obligations of
              Lessee, then base rent shall automatically become

                                          15

<PAGE>

              due and payable quarterly in advance, rather than monthly,
              notwithstanding paragraph 4.1 or any other provision of this lease
              to the contrary.

14.    CONDEMNATION.

       If the premises or any portion thereof or the industrial center are taken
       under the power of eminent domain, or sold under the threat of the
       exercise of said power (all of which are herein called "condemnation"),
       this lease shall terminate as to the part so taken as of the date the
       condemning authority takes title or possession, whichever first occurs.
       If more than ten percent of the floor area of the premises, or more than
       twenty five percent of that portion of the common areas designated as
       parking for the industrial center is taken by condemnation, Lessee may at
       Lessee's option, to be exercised in writing only within  thirty (30) days
       after Lessor shall have given Lessee written notice of such taking (or in
       the absence of such notice, within  thirty (30) days after the condemning
       authority shall have taken possession) terminate this lease as of the
       date the condemning authority takes such possession.  If Lessee does not
       terminate this lease in accordance with the foregoing, this lease shall
       remain in full force and effect as to the portion of the premises
       remaining, except that the rent shall be reduced in the proportion that
       the floor area of the premises taken bears to the total floor area of the
       premises.  No reduction of rent shall occur if the only area taken is
       that which does not have the premises located thereon.  Any award for the
       taking of all or any part of the premises under the power of eminent
       domain or any payment made under threat of the exercise of such power
       shall be the property of Lessor, whether such award be made as
       compensation for diminution in value of the leasehold or for the taking
       of the fee, or as severance damages, provided, however, that Lessee shall
       be entitled to any award for loss of or damage to Lessee's trade fixtures
       and removable personal property.  In the event that this lease is not
       terminated by reason of such condemnation, Lessor shall to the extent of
       severance damages received by Lessor in connection with such
       condemnation, repair any damage to the premises caused by such
       condemnation except to the extent that Lessee has been reimbursed
       therefor by the condemning authority.  Lessee shall pay any amount in
       excess of such severance damages required to complete such repair.

15.    BROKER'S FEE.

       Upon execution of this lease by both parties, Lessor shall pay all fees
       due to Brokers.  Lessee hereby warrants that it has no written agreement
       with any broker.

16.    ESTOPPEL CERTIFICATE.

              (a)    Each party (as "responding party") shall at any time, upon
              not less than ten (10) days prior written notice from the other
              party ("requesting party") execute, acknowledge and deliver to the
              requesting party, a statement in writing (1) certifying that this
              lease is unmodified and in full force and effect (or, if modified,
              stating the nature of such modification and certifying that this
              Lease, as so modified, is in full force and effect) and the date
              to which the rent and other charges are paid in advance, if any,
              and (2) acknowledging that there are not, to the responding
              party's knowledge, any uncured defaults on the part of the
              requesting party, or specifying such defaults if any are claimed.
              Any such statement may be conclusively relied upon by any
              prospective purchaser or encumbrance of the premises or of the
              business of the requesting party.

              (b)    At the requesting party's option, the failure to deliver
              such statement within such time shall be a material default of
              this lease by the party who is to respond, without any further
              notice to such party, or it shall be conclusive upon such party
              that (1) this lease is in full force and effect without
              modification except as may be represented by the requesting party,
              (2) there are no incurred defaults in the requesting party's
              performance, and (3) if Lessor is the requesting party, not more
              than one month's rent has been paid in advance.

              (c)    If Lessor desires to finance, refinance or sell the
              property, or any part thereof, Lessee hereby agrees to deliver to
              any lender or purchaser designated by Lessor such financial
              statements of Lessee as may be reasonably required by such lender
              or purchaser.  Such

                                          16

<PAGE>

              statements shall include the past three (3) years financial
              statements of Lessee.  All such financial statements shall be
              received by Lessor and such lender or purchaser in confidence and
              shall be used only for the purposes, herein set forth.

17.    LESSOR'S LIABILITY.

       The term "Lessor" as used herein shall mean only the owner or owners, at
       the time in question, of the fee title or a Lessee's interest in a ground
       lease of the industrial center, and except as expressly provided in
       paragraph 15, in the event of any transfer of such title or interest,
       Lessor heroin named (and in case of any subsequent transfer's, then the
       grantor) shall be relieved from and after the date of such transfer or
       all liability as respects Lessor's obligations thereafter to be
       performed, except for Lessor's obligations set forth in Exhibit C,
       provided that any funds in the hands of Lessor or the then grantor at the
       time of such transfer, in which Lessee has an interest, shall be
       delivered to the grantee.  The obligations contained in this lease to be
       performed by Lessor shall, subject as aforesaid, be binding on Lessor's
       successors and assigns, only during their respective periods of
       ownership, except for Lessor obligations set forth in Exhibit C.

18.    SEVERABILITY.

       The invalidity of any provision of this lease as determined by a court of
       competent jurisdiction, shall in no way affect the validity of any other
       provision hereof.

19.    INTEREST ON PAST-DUE OBLIGATIONS.

       Except as expressly herein provided, any amount due to Lessor not paid
       when due shall bear interest at the maximum rate then allowable by law
       from the date due.  Payment of such interest shall not excuse or cure any
       default by Lessee under this Lease, provided, however, that interest
       shall not be payable on late charges incurred by Lessee nor on any
       amounts upon which late charges are paid by Lessee.

20.    TIME OF ESSENCE.

       Time is of the essence with respect to the obligations under this Lease.

21.    ADDITIONAL RENT.

       All monetary obligations of Lessee to Lessor under the terms of this
       Lease, including but not limited to Lessee's share of operating expenses
       and insurance and tax expenses payable shall be deemed to be rent.

22.    INCORPORATION OF PRIOR AGREEMENTS; AMENDMENTS.

       This lease contains all agreements of the parties with respect to any
       matter mentioned herein.  No prior or contemporaneous agreement or
       understanding pertaining to any such matter shall be effective.  This
       lease may be modified in writing only, signed by the parties in interest
       at the time of the modification.  Except as otherwise stated in this
       Lease, Lessee hereby acknowledges that neither the real estate broker
       listed in paragraph 15 hereof nor any cooperating broker on this
       transaction, nor the Lessor or any employee or agents of any of said
       persons has made any oral or written warranties or representations to
       Lessee relative to the condition or use by Lessee of the premises or the
       property and Lessee acknowledges that Lessee assumes all responsibility
       regarding the Occupation Safety Health Act, the legal use and
       adaptability of the premises and the compliances thereof with all
       applicable laws and regulations in effect during the term of this Lease,
       except as otherwise specifically stated in this Lease.

                                          17

<PAGE>

23.    NOTICES.

       Any notice required or permitted under this lease shall be given when
       actually delivered or 48 hours after deposited in United States mail as
       certified mail addressed to the address following or to such other
       address as may be specified from time to time by either of the parties in
       writing.

       Lessee:              Birthday Express, Inc.
                            11220-120th Avenue NE, Suite 101
                            Kirkland, WA 98033

       Lessor:              405 Business Park Limited Partnership
                            Continental Real Estate Management Services
                            601 Union Street, Suite 2000
                            Seattle, WA 98101

24.    WAIVERS.

       No waiver by Lessor or any provision hereof shall be deemed a waiver of
       any other provision hereof or of any subsequent breach by Lessee of the
       same or any other provision.  Lessor's consent to or approval of any act
       shall not be deemed to render unnecessary the obtaining of Lessor's
       consent to or approval of any subsequent act by Lessee.  The acceptance
       of rent hereunder by Lessor shall not be a waiver of any preceding breach
       by Lessee of any provision hereof other than the failure of Lessee to pay
       the particular rent so accepted, regardless of Lessor's knowledge of such
       preceding breach at the time of acceptance of such rent.

25.    RECORDING.

       Either Lessor or Lessee shall, upon request of the other, execute,
       acknowledge and deliver to the other a "short form" memorandum of this
       lease for recording purposes.

26.    HOLDING OVER.

              (a)    If Lessee does not vacate the leased premises at the time
              required, Lessor shall have the option to treat Lessor as a tenant
              from month to month, subject to all of the provisions of this
              lease except the provisions for term and renewal (and at a rental
              rate equal to  125 percent of the rent last paid by Lessee during
              the original term for the first two months of the lease period.
              After the second month, the rental shall be increased to represent
              150 percent hold over cost).  Failure of Lessee to remove
              fixtures, furniture, furnishings, or trade fixtures which Lessee
              is required to remove under this lease shall constitute a failure
              to vacate to which this paragraph shall apply if the property not
              removed will substantially interfere with occupancy of the
              premises by another tenant or with occupancy by Lessor for any
              purpose including preparation for a new tenant.

              (b)    If a month to month tenancy results from a holdover by
              Lessee under this paragraph 26, the tenancy shall be terminable at
              the end of any monthly rental period on written notice from Lessor
              given not less than ten (10) days prior to the termination date
              which shall be specified in the notice.  Lessee waives any notice
              which would otherwise be provided by law with respect to a month
              to month tenancy.

27.    CUMULATIVE REMEDIES.

       No remedy or election hereunder, shall be deemed exclusive but shall,
       wherever possible, be cumulative with all other remedies at law or in
       equity.

                                          18

<PAGE>

28.    COVENANTS AND CONDITIONS.

       Each provision of this lease performable by Lessee shall be deemed both a
       covenant and a condition.

29.    BINDING EFFECT, CHOICE OF LAW.

       Subject to any provisions hereof restricting assignment or subletting by
       Lessee and subject to the provisions of paragraph 17, this lease shall
       bind the parties, successors and assigns.  This lease shall be governed
       by the laws of the state where the industrial center is located and any
       litigation concerning this lease between the parties hereto shall be
       initiated in the county in which the industrial center is located.

30.    ATTORNEY'S FEES.

       If either party  named herein bring an action to enforce the terms,
       hereof or declare rights hereunder, the prevailing party in any such
       action, on trial or appeal, shall be entitled to his reasonable
       attorney's fees to be paid by the losing party as fixed by the court.

31.    LESSOR'S ACCESS.

       Lessor and Lessor's agents shall have the right to enter the premises at
       reasonable times for the purpose of inspecting the same, showing the same
       to prospective purchasers, lenders, or Lessees, and making such
       alterations, repairs, improvements or additions to the premises or to the
       building of which they are part as Lessor may deem necessary or
       desirable.  Lessor may at any time place on or about the premises or the
       building any ordinary "For Sale" signs, and Lessor may at any time during
       the last 120 days of the term hereof place on or about the premises any
       ordinary "For lease" signs.  All activities of Lessor pursuant to this
       paragraph shall be without abatement of rent, nor shall Lessor have any
       liability to Lessee for the same.

32.    AUCTIONS.

       Lessee shall not conduct nor permit to be conducted, either voluntarily
       or involuntarily, any auction upon the premises or the common areas
       without first having obtained Lessor's prior written consent
       notwithstanding anything to the contrary in this lease.  Lessor shall not
       be obligated to exercise any standard of reasonableness, in determining
       whether to grant such consent.

33.    SIGNS.

       Lessee shall have the right, at its sole cost, to professionally install
       two building exterior wall mounted signs, subject to the following
       conditions:

       1)     Lessee shall have the right to install one (1) sign on the
              eastern building wall, facing I-405.  Such sign shall not
              exceed 54 square feet and Lessee shall be responsible for
              gaining all required city of Kirkland permits.  Lessee
              shall submit a sketch of the desired sign to the Lessor for
              its approval, such approval shall not be unreasonably
              withheld.

                                          19

<PAGE>

       2)     Lessee shall have the right to install one (1) sign on the western
              building wall, facing 120th Street.  Such sign shall not exceed 36
              square feet and Lessee shall be responsible for gaining all
              required city of Kirkland permits.  Lessee shall submit a sketch
              of the desired sign to the Lessor for its approval, such approval
              shall not be unreasonably withhold.

       3)     Lessee shall have the right to seek appropriate permits
              from the city of Kirkland to install temporary sign and/or
              displays on the roof of the building.  Such displays shall
              not be on the roof in excess of 14 days and all displays
              shall be approved in advance by the Lessor, such approval
              shall not be unreasonably withheld.

34.    MERGER.

       The voluntary or other surrender of this lease by Lessee, or a mutual
       cancellation thereof, or a termination by Lessor, shall not work a
       merger, and shall at the option of Lessor terminate all or any existing
       subtenancies or may at the option of Lessor, operate as an assignment to
       Lessor of any or all of such subtenancies.

35.    CONSENTS.

       Except for paragraph 33 hereof, wherever in this lease the consent of one
       party is required to an act of the other party such consent shall not be
       unreasonably withheld or delayed.

36.    GUARANTOR.

       In the event that there is a guarantor of this Lease, said guarantor
       shall have the same obligations as Lessee under this Lease.

37.    QUIET POSSESSION.

       Upon Lessee paying the rent for the premises and observing and performing
       all of the covenants, conditions and provisions on Lessee's part to be
       observed and performed hereunder, Lessee shall have quiet possession of
       the premises for the entire term hereof subject to all of the provisions
       of this lease.  The individuals executing this lease on behalf of Lessor
       represent and warrant to Lessee that they are fully authorized and
       legally capable of executing this lease on behalf of Lessor and that such
       execution is binding upon all parties, holding an ownership interest in
       the property.

38.    SECURITY MEASURES.

       Lessee hereby acknowledges that Lessor shall have no obligation
       whatsoever to provide guard service or other security measures for the
       benefit of the premises or the industrial center.  Lessee assumes all
       responsibility for the protection of Lessee, its agents, and invitees and
       the property of Lessee and of Lessee's agents, and invitees from act of
       third parties.  Nothing herein contained shall prevent Lessor at Lessor's
       sole option, from providing security protection for the industrial center
       or any part thereof, in which event the cost thereof shall be included
       within the definition of operating expenses, as set forth in paragraph
       4.2(b).

39.    EASEMENTS.

       Lessor reserves to itself the right, from time to time, to grant such
       easements, rights and dedications that Lessor deems necessary or
       desirable and to cause the recordation of parcel maps and restrictions,
       so long as such easements, rights, dedications, maps and restrictions
       do not unreasonably interfere with the use of the premises by Lessee.
       Lessee shall sign any

                                          20

<PAGE>

       of the aforementioned documents upon request of Lessor and failure to do
       so shall constitute a material default of this lease by Lessee without
       the need for further notice to Lessee.

40.    PERFORMANCE UNDER PROTEST.

       If at any time a dispute shall arise as to any amount or sum of money to
       be paid by one party to the other under the provisions hereof, the party
       against whom the obligation to pay the money is asserted shall have the
       right to make payment "under protest" and such payment shall not be
       regarded as a voluntary payment, and there shall survive the right on the
       part of said party to institute suit for recovery of such sum.  If it
       shall be adjudged that there was no legal obligation, on the part of said
       party to pay such sum or any part thereof, said party shall be entitled
       to recover such sum or so much thereof as it was not legally required to
       pay under the provisions of this lease.

       Any legal action relating to this lease shall be brought only in King
       County Superior Court in the State of Washington.

41.    AUTHORITY.

       If Lessee is a corporation, trust, or general or limited partnership,
       each individual executing this lease on behalf of such entity represents
       and warrants that he or she is duly authorized to execute this lease on
       behalf of said entity.  If Lessee is a corporation, trust, or
       partnership, Lessee shall, within thirty (30) days after execution of
       this lease, deliver to Lessor evidence of such authority satisfactory to
       Lessor.

42.    CONFLICT.

       Any conflict between the printed provisions of this lease and the
       typewritten or handwritten provisions, if any, shall be controlled by the
       typewriter or handwritten provisions.

43.    OFFER.

       Preparation of this lease by Lessor or Lessor's agent and submission of
       same to Lessee shall not be deemed an offer to lease.  This lease becomes
       binding upon Lessor and Lessee only when fully executed by Lessor and
       Lessee.

44.    SUBORDINATION.

       This lease is subject and is hereby subordinated to all present and
       future mortgages, deeds of trust and other encumbrances affecting the
       demised premises or the property of which said premises are a part.  The
       Lessee agrees to execute, at no expense to the Lessor, any instrument
       which may be deemed necessary or desirable by the Lessor to further
       effect the subordination of this lease to any mortgage, deed of trust or
       encumbrances.

45.    OPTION TO RENEW.

       See Exhibit E, Addendum 4.

                                          21

<PAGE>

LESSOR:                            LESSEE:

          /S/ Stephen C. Grey                /S/ Michael K Jewell
------------------------------------         -----------------------------------

Stephen C. Grey, Senior Vice President       Michael K Jewell, President

405 Business Park Limited Partnership        Jan A. Jewell, Co-President
c/o Continental Real Estate Management       Birthday Express, Inc.
Services                           11220-120th Avenue NE, Suite
102
601 Union Street, Suite 2000            Kirkland, WA 98033
Seattle, WA 98101

State of Washington      )
                         ) ss.
County of King           )

On this 9th day November, 1995, before me, personally appeared Stephen C. Grey,
to me known to be the Senior Vice President, of the corporation that executed
the within and foregoing instrument; and acknowledged the said instrument to be
the free and voluntary act and deed of said corporation, for the uses and
purposes therein mentioned, and on oath stated that he/she was authorized to
execute said instrument and that the seal affixed hereto (if any) is the
corporate seal of said corporation.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Official Seal the
day and year first above written.

               /S/ Carole Jean Larson
          ---------------------------------------------
          Notary Public in and for the State of                            SEAL
          Washington residing at Auburn
          My Appointment Expires: 6-15-98

State of Washington      )
                         ) ss.
County of King           )

On this 9th day November, 1995, before me, personally appeared Michael Jewell,
to me known to be the                  President, of the corporation that
executed the within and foregoing instrument; and acknowledged the said
instrument to be the free and voluntary act and deed of said corporation, for
the uses and purposes therein mentioned, and on oath stated that he/she was
authorized to execute said instrument and that the seal affixed hereto (if any)
is the corporate seal of said corporation.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Official Seal the
day and year first above written.

               /S/ Renee Long
          ---------------------------------------------
          Notary Public in and for the State of
          Washington residing at __________
          My Appointment Expires: 1-19-96

                                          22

<PAGE>

                                     EXHIBIT A

                                      Premises

                                      [ROOM PLAN]

<PAGE>

                                     EXHIBIT B
                                 LEGAL DESCRIPTION

PARCEL 1:

THE NORTH HALF OF THE SOUTH TWO-THIRDS DESCRIBED AS FOLLOWS:

THE NORTH 348.12 FEET OF THE SOUTH 690 FEET OF THE WEST 375.38 FEET OF THE
NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION 33, TOWNSHIP 26 NORTH,
RANGE 5 EAST, W.M. IN KING COUNTY, WASHINGTON; AND THE NORTH 11.29 FEET OF THE
SOUTH HALF OF SAID SOUTH TWO-THIRDS; EXCEPT THE WEST 30 FEET FOR ROAD; AND
EXCEPT PORTIONS DEEDED TO THE STATE OF WASHINGTON FOR PRIMARY STATE HIGHWAY NO.
1, RECORDED UNDER RECORDING NUMBERS 4561981 AND 96362465.

PARCEL 2:

THE NORTH 179.75 FEET OF THE SOUTH 446.63 FEET OF THE WEST 375.38 FEET OF THE
NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION 33, TOWNSHIP 26 NORTH,
RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON; EXCEPT THE WEST 30 FEET FOR
ROAD; EXCEPT PORTIONS DEEDED TO THE STATE OF WASHINGTON FOR PRIMARY STATE
HIGHWAY NO. 1 BY DEEDS RECORDED UNDER RECORDING NUMBERS 4561981, 6362465,
4585665 AND 6404474;

TOGETHER WITH AN EASEMENT FOR DRIVEWAY PURPOSES OVER A STRIP OF LAND 26.67 FEET
WIDE, WHOSE SOUTH MARGIN IS THE NORTH MARGIN OF THIS PARCEL;

TOGETHER WITH AN EASEMENT FOR PARKING OVER THE NORTH 40 FEET OF THE SOUTH 266.88
FEET OF THE WEST 375.38 FEET, AND AN EASEMENT FOR INGRESS AND EGRESS OVER THE
SOUTH 25 FEET OF THE NORTH 65 FEET OF THE SOUTH 266.88 FEET OF THE WEST 375.38
FEET; ALL IN THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER, SECTION 33,
TOWNSHIP 26 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON.

TOGETHER WITH AN EASEMENT FOR INGRESS AND EGRESS OVER THE SOUTH 25 FEET OF THE
NORTH 179.75 FEET OF THE SOUTH 446.63 FEET OF THE WEST 375.38 FEET; AND
RESERVING THE MUTUAL RIGHT OF PARKING ON THE NORTH 40 FEET OF THE SOUTH 266.88
FEET OF THE WEST 375.38 FEET; BOTH TO THE BENEFIT OF RESENT AND FUTURE OWNERS OF
THE SOUTH 266.88 FEET OF THE WEST 375.38 FEET, ALL IN THE NORTHEAST QUARTER OF
THE NORTHWEST QUARTER.

OF SECTION 33, TOWNSHIP 26 NORTH, RANGE 5 EAST, W.M. IN KING COUNTY, WASHINGTON;
EXCEPT THAT PORTION LYING WITHIN NORTHEAST 112TH STREET, IF ANY; AND EXCEPT THE
WEST 30 FEET OF ROAD; AND EXCEPT PORTION CONVEYED TO THE STATE OF WASHINGTON BY
DEEDS RECORDED UNDER RECORDING NUMBERS 457359 AND 6350591.

PARCEL 3:

THE NORTH ONE-THIRD OF THE NORTH 348.12 FEET OF THE SOUTH 690 FEET OF THE WEST
375.38 FEET OF THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION 33,
TOWNSHIP 26 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON; EXCEPT THE
WEST 30 FEET THEREOF FOR ROAD PURPOSES; AND EXCEPT THAT PORTION THEREOF CONVEYED
TO THE STATE OF WASHINGTON FOR SECONDARY STATE HIGHWAY NO. 2-A BY DEEDS RECORDED
UNDER RECORDING NUMBERS 4569597, RECORDS OF SAID COUNTY;

EXCEPT THAT PORTION OF SAID NORTH ONE-THIRD LYING WITHIN THE NORTH 630 FEET OF
SAID NORTHEAST QUARTER OF THE NORTHWEST QUARTER.

                                          24

<PAGE>

                                     EXHIBIT C

                                  HAZARDOUS WASTE

The term "Hazardous Substances", as used in this lease shall mean pollutants,
contaminants, toxic or hazardous wastes, or any other substances, the use and/or
the removal of which is required or the use of which is restricted, prohibited
or penalized by any "Environmental Law", which term shall mean any federal,
state or local law, ordinance or other statute of a governmental or
quasi-governmental authority relating to pollution or protection of the
environment.  Lessee hereby agrees that (i) no activity will be conducted on the
premises that will produce any Hazardous Substance, except for such activities
that are part of the ordinary course of Lessee's business activities (the
"Permitted Activities") provided said Permitted Activities are conducted in
accordance with all Environmental Laws and have been approved in advance in
writing by Lessor; Lessee shall be responsible for obtaining any required
permits and paying any fees and providing any testing required by any
governmental agency; (ii) the premises will not be used in any manner for the
storage of any Hazardous Substances except for the temporary storage of such
materials that are used in the ordinary course of Lessee's business (the
"Permitted Materials") provided such Permitted Materials are properly stored in
a manner and location meeting all Environmental Laws and approved in advance in
writing by Lessor; Lessee shall be responsible for obtaining any required
permits and paying any fees and providing any testing required by any
governmental agency; (iii) no portion of the premises will be used as a landfill
or a dump; (iv) Lessee will not install any underground tanks of any type; (v)
Lessee will not allow any surface of subsurface conditions to exist or come into
existence that constitute, or with the passage of time may constitute a public
or private nuisance; (vi) Lessee will not permit any Hazardous Substances to be
brought onto the premises, except for the Permitted Materials described below,
and if so brought or found located thereon, the same shall be immediately
removed, with proper disposal, and all required cleanup procedures shall be
diligently undertaken pursuant to all Environmental Laws.  Lessor or Lessor's
representative shall have the right but not the obligation to enter the premises
for the purpose of inspecting the storage, use and disposal of Permitted
Materials to ensure compliance with all Environmental Laws.  Should it be
determined, in Lessor's sole opinion, that said Permitted Materials are being
improperly stored, used or disposed of, then Lessee shall immediately take such
corrective action as requested by Lessor.  Should Lessee fail to take such
corrective action within 24 hours, Lessor shall have the right to perform such
work and Lessee shall promptly reimburse Lessor for any and all costs associated
with said work.  If at any time during or after the term of the lease, the
premises is found to be so contaminated or subject to said conditions, Lessee
shall diligently institute proper and thorough cleanup procedures at Lessee's
sole cost, and Lessee agrees to indemnify and hold Lessor harmless from all
claims, demands, actions, liabilities, costs, expenses, damages and obligations
of any nature arising from or as a result of the use of the premises by Lessee.
The foregoing indemnification and the responsibilities of Lessee shall survive
the termination or expiration of this Lease.  Lessee shall not be liable or
responsible for any claims arising from the presence of any Hazardous Substance
determined to be on the site prior to Lessee's occupancy.  If at any time during
the term of the lease or any extension or renewal thereof, the premises and/or
Industrial Center are found to be contaminated by Hazardous Substances or
subject to said conditions which are determined to have been on the premises
prior to the inception of the lease, Lessor shall, in accordance with all
federal, state, and/or local governmental mandates, diligently institute proper
and thorough cleanup procedures at Lessor's sole cost, and Lessor agrees to
indemnify and hold Lessee harmless from all claims, demands, actions,
liabilities, costs, expenses, damages, and obligations of any nature arising
from or as a result of the prior presence of Hazardous Substances or conditions
caused thereby.  The foregoing indemnification and the responsibilities of
Lessor shall survive the termination or expiration of this lease.  If Lessor is
not able to immediately institute proper and thorough cleanup procedures in
accordance with all federal, state, and/or local governmental mandates, and if
in Lessee's opinion said failure to do so detrimental to Lessee continuing
business on the premises or to Lessee's employees, Lessee reserves the right to
terminate the lease pursuant to Paragraph 13.3

Permitted Materials (if none, enter none): None

                                          25

<PAGE>

                                     EXHIBIT D

                                   Rent Schedule

<TABLE>
<CAPTION>
                 MONTHS                                    RENT
                 ------                                    ----
                 <C>                                    <C>
                   1-4                                    Free*
                  5-25                                  $7,448.38
                  26-61                                 $9,538.38
</TABLE>

* Rental abatement for months 1 -4 shall include full abatement of all CAM
charges.

                                          26

<PAGE>

                                     EXHIBIT E

                                     ADDENDUM 1

1.   PREMISES, PARKING AND COMMON AREAS 12.1 PREMISES)

     Lessee to occupy 14,534 square feet  December 1, 1995 through December
     31, 1997.

     Lessee to occupy 16,734 square feet January 1, 1998 through December 31,
     2000.

     Lessee shall have the right during the period December 1.  1995 -
     December 31, 1997 to utilize approximately 2,200 square feet of this
     space on a non-permanent and strictly periodic basis for the purpose of
     general storage and/or company meetings.

2.   TERM (3.1 TERM)

     Lessee shall have the option to terminate this Lease anytime after the
     37th month, by giving the Lessor 120 days notice prior to said
     termination date and by paying a penalty of $13,387.20 on a sliding scale
     of $13,387.20 for the  38th month to $0.00 for the 60th month.

3.   OPTION TO RENEW

     Provided Lessee is not in default of the terms and conditions of the
     Lease, Lessee has the option to renew its Lease under the same terms and
     conditions contained in this lease for two (2) additional terms of three
     (3) years ("Extended Term`) following expiration of the Initial Term,
     provided that Base Rent shall be market rate for a five year lease in
     comparable buildings in the vicinity.  The option shall be exercised by
     Lessee giving not less that one hundred and eighty (150) days written
     notice of its intent to exercise its option to renew.  If Lessor and
     Lessee fail to agree in writing on base rent for the extended term within
     forty five (45) days of Lessor's receipt of Lessee's notice exercising
     the option, then the option shall be void and Lessee's original notice
     exercising the option shall be treated as if it were never given.

4.   EXCLUSIVITY OF LESSEE'S USE

     Lessor agrees, during the term of this Lease not to lease any space
     within the Industrial Center to a "Party Goods", store or mail order
     company.  A "Party Goods", store or mail order Company shall be
     considered as any Lessee whose primary use of Premises is the sale or
     distribution of paper, plastic or party favor gifts; expressly utilized
     for party or entertainment functions.

                                          27

<PAGE>

                                     EXHIBIT E

                                    ADDENDUM 1A

                                    [SITE PLAN]

                                          28<PAGE>

                                 LEASE AMENDMENT

DATED:   APRIL 30, 1999

BETWEEN: QUEEN INVESTMENT COMPANY                    LANDLORD
         a Washington Limited Liability Company

AND:     BIRTHDAY EXPRESS, INC.                      TENANT
         a Washington corporation

                  By written Lease Agreement dated November 9, 1995, Tenant
leased from Landlord approximately 16,734 square feet of warehouse and office
space, located in the 405 Business Park Annex, 11220 120th Avenue NE,
Kirkland, Washington (hereinafter referred to as the "First Premises"). AND

                  By written Lease Agreement dated May 29, 1997, Tenant
leased from Landlord approximately 6,080 square feet of warehouse and office
space, located in the 405 Business Park Annex, 11218 120th Avenue NE,
Kirkland, Washington (hereinafter referred to as the "Second Premises").

         Said documents are hereinafter jointly referred to as the "Lease".
The Lease for the First Premises terminates on December 31, 2000 and the
Lease for the Second Premises terminates on November 21, 2000.

         Tenant now wishes to occupy temporary office and warehouse space
within the 405 Business Park, extend the term of the First and Second
Premises and expand into an additional approximate 11,696 square feet of
warehouse and office space in the 405 Business Park Annex, located at 11216
120th Avenue NE, Kirkland Washington (hereinafter referred to as the "Third
Premises").

                  NOW, THEREFORE, the parties agree as follows:

         1.  Effective May 17, 1999, Tenant shall temporarily occupy
approximately 1,225 square feet of warehouse space located in the west half
of 11232 120th Avenue NE, Suite 103 and 1,250 square feet of office space
located at 11232 120th Avenue NE, Suite 206, 405 Business Park (hereinafter
jointly referred to as the "Temporary Space"). Tenant shall occupy the
Temporary Space from May 17, 1999 through November 30, 1999. Tenant shall
have the option to shorten the lease term should the 405 Business Park Annex,
located at 11216 120th Ave NE become available and tenant moves into the
space.

         2.  The Base Rent for the Temporary Space will be as follows:

                  Suite 103         $  673.75 per month, NNN
                  Suite 206         $1,875.00 per month, full service

         3.  The lease term for the First Premises shall be extended for three
(3) years effective January 1, 2001 through December 31, 2003. The Base Rent for
the First Premises shall be as follows:

<TABLE>
<CAPTION>
         -----------------------------------------------------------------------
                                                           BASE Rent
                         Period                         First Premises
         -----------------------------------------------------------------------
<S>                                                  <C>
         January 1, 2001 - December 31, 2001         $ 9,919.92
         -----------------------------------------------------------------------
         January 1, 2002 - December 31, 2002         $10,316.72
         -----------------------------------------------------------------------
         January 1, 2003 - December 31, 2003         $10,729.39
         -----------------------------------------------------------------------
</TABLE>

         4.  The Lease term for the Second Premises shall also be extended
for three (3) years and 1.3 months effective November 22, 2000 through
December 31, 2003. The Base Rent for the Second Premises shall be as follows:

<TABLE>
<CAPTION>
         -----------------------------------------------------------------------
                                                           BASE Rent
                         Period                         Second Premises
         -----------------------------------------------------------------------
<S>                                                  <C>
         November 1, 2000 - December 31, 2000        $ 3,648.00
         -----------------------------------------------------------------------
         January 1, 2001 - December 31, 2001         $ 3,648.00
         -----------------------------------------------------------------------
         January 1, 2002 - December 31, 2002         $ 3,757.44
         -----------------------------------------------------------------------
         January 1, 2003 - December 31, 2003         $ 3,870.16
         -----------------------------------------------------------------------
</TABLE>

         5.  Effective December 1, 1999, or sooner should the space become
available, Tenant shall expand into approximately 11,696 square feet of
warehouse and office space in the 405 Business Park Annex, located at 11216
120th Avenue NE, Kirkland Washington. Tenant shall take possession of the
space in "as-is" condition. The lease term for the Third Premises shall
commence December 1, 1999 through December 31, 2003 and the Base Rent shall
be as follows: Landlord to provide space in move in condition for Tenant with
joint appoint in office area.

<PAGE>

<TABLE>
<CAPTION>
         -----------------------------------------------------------------------
                                                           BASE Rent
                         Period                          THIRD Premises
         -----------------------------------------------------------------------
<S>                                                  <C>
         December 1, 1999 - December 31, 2000         $  6,432.80
         -----------------------------------------------------------------------
         January 1, 2001 - December 31, 2001          $  6,625.78
         -----------------------------------------------------------------------
         January 1, 2002 - December 31, 2002          $  6,824.55
         -----------------------------------------------------------------------
         January 1, 2003 - December 31, 2003          $  7,029.29
         -----------------------------------------------------------------------
</TABLE>

         6.  If not then in default, Tenant shall have an option to renew the
First, Second and Third Premises for one (1) three-year term, under the same
terms and conditions except as to the Base Rent, by giving not less than 180
days advanced written notice of its intent to exercise its option to renew.
The Base Rent for the three premises shall be at the then current market
rent, however, in no event shall the rental be less than the prior month's
rent.

         7.  Provided Tenant's Lease is still in effect and Tenant has not
defaulted thereunder, Tenant shall be granted the First Opportunity to Lease
the Adjacent Space located at 11200 120th NE with approximately 4,041 square
feet of office and warehouse space, should it become available during
Tenant's lease term. Said availability is subject to the renewal of the
current tenant's options to renew.

         8.  Tenant has been granted the right to sublease any of the three
Premises according to Article 12 - Assignment and Subletting, of the two
leases dated November 9, 1995 and May 29, 1997.

         9.  The Option to Terminate, as outlined in the Lease dated November
9, 1995, is hereby null and void.

         10. Except as expressly modified hereby, all terms of the Leases shall
remain in full force and effect and shall continue through the existing and
extended terms.

         IN WITNESS WHEREOF, the parties have executed this agreement as of the
day and year first written above.

QUEEN INVESTMENT COMPANY, LLC                     BIRTHDAY EXPRESS, INC.
a Washington Limited Liability Company            a Washington corporation

BY:      /S/ RICHARD LEA III                      BY:      /S/ MICHAEL K. JEWELL
         -------------------                               ---------------------

ITS:     PRESIDENT                                ITS:     PRESIDENT
         ---------                                         ---------

DATE:    5/6/99                                   DATE:            5/3/99
         ------                                                    ------

<PAGE>

STATE OF WASHINGTON                     CORPORATE
                        }      ss.
     COUNTY OF KING

         On this 6th day of May A.D. 99, before me personally appeared
Richard Lea, III, to me known to be the President of Queen Investment
Company, LLC, the corporation that executed the within and foregoing
instrument, and acknowledged the same instrument to be the free and voluntary
act and deed of said corporation, for the uses and purposes therein
mentioned, and on oath stated that they were authorized to execute said
instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal, the day and year first above written.
                                               /s/ Valerie Kennedy
                                               -------------------

         Notary Public in and for the State of Washington, residing at Puyallup

STATE OF WASHINGTON                     CORPORATE
                        }      ss.
     COUNTY OF KING

         On this 4 day of May A.D. 1999, before me personally appeared
Michael K. Jewell to me known to be the President and _______________________
to me known to be the _______________________________________ of Birthday
Express the corporation that executed the within and foregoing instrument, and
acknowledged the same instrument to be the free and voluntary act and deed of
said corporation, for the uses and purposes therein mentioned, and on oath
stated that they were authorized to execute said instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal, the day and year first above written.
                                               /s/ Sue Hames
                                               -------------

         Notary Public in and for the State of Washington, residing at King.
Co. Bothell.

STATE OF ___________________          INDIVIDUAL
                             }   ss.
     COUNTY OF _____________

         This is to certify that on this ______________ day of
_________________ A.D. 19___, before me the undersigned, a Notary Public in
and for the State of ___________________________, duly commissioned and
qualified, personally appeared
______________________________________________________________________________
______________________________________________________________________________
to me known to be the individual ____ described in and who executed the within
and foregoing instrument, and acknowledged to me that ____________________
signed and sealed the same as ____________ free and voluntary act and deed, for
the uses and purposes therein mentioned.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal, the day and year first above written. ____________________________________

         Notary Public in and for the State of ________________________________,
residing at __________________________.

STATE OF ___________________          INDIVIDUAL
                             }   ss.
     COUNTY OF _____________

         This is to certify that on this ______________ day of _________________
A.D. 19___, before me the undersigned, a Notary Public in and for the State of
___________________________, duly commissioned and qualified, personally
appeared
______________________________________________________________________________
______________________________________________________________________________
to me known to be the individual ____ described in and who executed the within
and foregoing instrument, and acknowledged to me that ____________________
signed and sealed the same as ____________ free and voluntary act and deed, for
the uses and purposes therein mentioned.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal, the day and year first above written. ____________________________________

         Notary Public in and for the State of ________________________________,
residing at __________________________.

<PAGE>

                              LEASE AMENDMENT NO. 2

DATED:    SEPTEMBER 14, 1999

BETWEEN:  QUEEN INVESTMENT COMPANY                             LANDLORD
          a Washington Limited Liability Company

AND:      BIRTHDAY EXPRESS.COM, INC.                           TENANT
          a Washington Corporation

                  By written Lease dated November 9, 1995, Tenant leased from
Landlord approximately 16,734 square feet of warehouse and office space, located
in the 405 Business Annex, 11220 120th Avenue NE, Kirkland, Washington
(hereinafter referred to as the "First Premises"). By written Lease dated May
29, 1997, Tenant leased from Landlord approximately 6,080 square feet of
warehouse and office space, located in the 405 Business Annex, 11218 120th
Avenue NE, Kirkland, Washington (hereinafter referred to as the "Second
Premises"). By Lease Amendment dated April 30, 1999, Tenant leased temporary
office and warehouse space within the 405 Business Park (hereinafter referred to
as the "Temporary Space"); extended the term of the First and Second Premises
and is to expand into an approximate 11,696 square feet of warehouse and office
space in the 405 Business Annex, located at 11216 120th Avenue NE, Kirkland
Washington (hereinafter referred to as the "Third Premises"). Said documents are
hereinafter jointly referred to as the "Lease". The Lease expires December 31,
2003.

                  Tenant now wishes to convert the Temporary Space as described
in Lease Amendment dated April 30, 1999 to a permanent lease; expand into an
additional approximate 1,225 square feet of warehouse space located in the east
half of Suite 103 at 11232 120th Avenue NE, Kirkland Washington; lease
approximately 2,255 square feet of office space, located at 11232 120th Avenue
NE, Suite 204, Kirkland, Washington and lease an approximate 950 square feet of
office space located at 11232 120th Avenue NE, Suite 107, Kirkland, Washington.

                  NOW, THEREFORE, the parties agree as follows:

         1. Effective September 6, 1999, Tenant shall permanently lease
approximately 2,450 square feet of warehouse space located at 11232 120th Avenue
NE, Suite 103, Kirkland, Washington (hereinafter referred to as the "Fourth
Premises") and approximately 1,250 square feet of office space located at 11232
120th Avenue NE, Suite 206, Kirkland, Washington (hereinafter referred to as the
"Fifth Premises"). The Base Rent for Suite 103 shall be as follows:

<TABLE>
<CAPTION>
         ---------------------------------------------------------------------------------
                                                                        BASE RENT
                                      PERIOD                          FOURTH PREMISE
         ---------------------------------------------------------------------------------
<S>                                                              <C>
         September 1, 1999 - September 5, 1999                   $   112.29 per month
         ---------------------------------------------------------------------------------
         September 6, 1999 - September 30, 1999                  $1,122.92 per month
         ---------------------------------------------------------------------------------
         October 1, 1999 - August 31, 2000                       $1,347.50 per month
         ---------------------------------------------------------------------------------
         September 1, 2000 - August 31, 2001                     $1,387.93 per month
         ---------------------------------------------------------------------------------
         September 1, 2001 - August 31, 2002                     $1,429.56 per month
         ---------------------------------------------------------------------------------
         September 1, 2002 - August 31, 2003                     $1,472.45 per month
         ---------------------------------------------------------------------------------
         September 1, 2003 - December 31, 2003                   $1,516.62 per month
         ---------------------------------------------------------------------------------

             The Base Rent for Suite 206 shall be as follows:

<CAPTION>
         ---------------------------------------------------------------------------------
                                                                        BASE RENT
                                      PERIOD                          FIFTH PREMISE
         ---------------------------------------------------------------------------------
<S>                                                              <C>
         September 1, 1999 - August 31, 2000                     $ 1,875.00 per month
         ---------------------------------------------------------------------------------
         September 1, 2000 - August 31, 2001                     $1,931.25 per month
         ---------------------------------------------------------------------------------
         September 1, 2001 - August 31, 2002                     $1,989.19 per month
         ---------------------------------------------------------------------------------
         September 1, 2002 - August 31, 2003                     $2,048.87 per month
         ---------------------------------------------------------------------------------
         September 1, 2003 - December 31, 2003                   $2,110.33 per month
         ---------------------------------------------------------------------------------

         2. Effective May 1, 2000, Tenant shall lease approximately 2,255 square
feet of office space located at 11232 120th Avenue NE, Suite 204, Kirkland,
Washington (hereinafter referred to as the "Sixth Premises"). Tenant shall
occupy the Sixth Premise from May 1, 2000 through December 31, 2003. The Base
Rent for Suite 204 shall be as follows:

<CAPTION>
         -------------------------------------------------------------------
                                                          BASE RENT
                                      PERIOD            SIXTH PREMISE
         -------------------------------------------------------------------
<S>                                                <C>
         May 1, 2000 - April 30, 2001              $2,818.75 per month
         -------------------------------------------------------------------
         May 1, 2001 - April 30, 2002              $3,382.50 per month
         -------------------------------------------------------------------
         May 1, 2002 - December 31, 2003           $3,483.98 per month
         -------------------------------------------------------------------

         3. Effective October 1, 1999, Tenant shall lease approximately 950
square feet of office and warehouse space located at 11232 120th Avenue NE,
Suite 107, Kirkland, Washington (hereinafter referred to as the "Seventh
Premises"). This occupancy is contingent upon Landlords' ability to obtain a
fully executed Lease Termination with existing tenant, Decks Northwest, Inc., to
terminate their Lease and to relinquish the Premises effective October 1, 1999.
Tenant shall occupy the Seventh Premise from October 1, 1999 through December
31, 2003. The Base Rent for Suite 107 shall be as follows:

<CAPTION>
         -----------------------------------------------------------------------
                                                                  BASE RENT
                                      PERIOD                   SEVENTH PREMISE
         -----------------------------------------------------------------------

<PAGE>

<S>                                                        <C>
         October 1, 1999 - September 30, 2000              $570.00 per month
         -----------------------------------------------------------------------
         October 1, 2000 - September 30, 2001              $587.10 per month
         -----------------------------------------------------------------------
         October 1, 2001 - September 30, 2002              $604.71 per month
         -----------------------------------------------------------------------
         October 1, 2002 - December 31, 2003               $622.85 per month
         -----------------------------------------------------------------------

         4. The Fourth, Fifth, Sixth and Seventh Premises shall become subject
to the terms of the Lease dated November 9, 1995. Tenant's total leased square
footage of warehouse and office space shall now total as follows:

<CAPTION>
         ----------------------------------------------- -----------------

                            PREMISE                           SQUARE
                                                              FOOTAGE
         ----------------------------------------------- -----------------
<S>                                                      <C>
         First Premise (11220 120th Ave NE)               16,734
         ----------------------------------------------- -----------------
         Second Premise (11218 120th Ave NE)               6,080
         ----------------------------------------------- -----------------
         Third Premise (11216 120th Ave NE)               11,696
         ----------------------------------------------- -----------------
         Fourth Premise (Suite 103)                        2,450
         ----------------------------------------------- -----------------
         Fifth Premise (Suite 206)                         1,250
         ----------------------------------------------- -----------------
         Sixth Premise (Suite 204)                         2,255
         ----------------------------------------------- -----------------
         Seventh Premise (Suite 107)                         950
         ----------------------------------------------- -----------------
                                                  TOTAL   41,415
         ----------------------------------------------- -----------------
</TABLE>

         5. Tenant's Option to Renew the First, Second and Third Premises for
one (1) three-year term, as stated in Lease Amendment dated April 30, 1999 shall
now include the Fourth, Fifth, Sixth and Seventh Premises. All other terms and
conditions of the Option to Renew shall remain the same and in full effect.

         6. Tenant's First Opportunity to Lease, as stated in Amendment dated
April 30, 1999 shall remain the same and in full effect.

         7. Tenant has been granted the right to sublease any of the seven
Premises according to Article 12 - Assignment and Subletting, of the two leases
dated November 9, 1995 and May 29, 1997.

         8. Except as expressly modified hereby, all terms of the Leases shall
remain in full force and effect and shall continue through the existing and
extended terms.

         IN WITNESS WHEREOF, the parties have executed this agreement as of the
day and year first written above.

QUEEN INVESTMENT COMPANY, LLC                        BIRTHDAY EXPRESS.COM, INC.
a Washington Limited Liability Company               a Washington corporation

BY:      /s/ RICHARD LEA, III                        BY:   /s/ MICHAEL K. JEWELL
         --------------------                              ---------------------

ITS:     PRESIDENT                                   ITS:  PRESIDENT
         ---------                                         ---------

DATE:             10/21/99                           DATE:       10/4/99
                  --------                                       -------
<PAGE>

STATE OF WASHINGTON                }                       CORPORATE
                                         ss.
     COUNTY OF KING
         On this 21st day of October A.D. 19 __ , before me personally
appeared Richard Lea, III, to me known to be the President of Queen
Investment Company, LLC, the corporation that executed the within and
foregoing instrument, and acknowledged the same instrument to be the free and
voluntary act and deed of said corporation, for the uses and purposes therein
mentioned, and on oath stated that they were authorized to execute said
instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal, the day and year first above written.  /s/ Valorie Kennedy
                                           ---------------------------

Notary Public in and for the State of Washington, residing at Puyallup.

STATE OF WASHINGTON                             }          CORPORATE
                                                      ss.
     COUNTY OF KING

         On this 4 day of October A.D. 1999, before me personally appeared
Michael K. Jewell to me known to be the President and
____________________________________________ to me known to be the
_______________________________________ of Birthday Express the corporation
that executed the within and foregoing instrument, and acknowledged the same
instrument to be the free and voluntary act and deed of said corporation, for
the uses and purposes therein mentioned, and on oath stated that they were
authorized to execute said instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal, the day and year first above written.       /s/ Sue Homes
                                             ---------------------------

         Notary Public in and for the State of Washington, residing at King
Co.

STATE OF __________________________             }          INDIVIDUAL
     COUNTY OF _____________________                  ss.

         This is to certify that on this ______________ day of _________________
A.D. 19___, before me the undersigned, a Notary Public in and for the State of
___________________________, duly commissioned and qualified, personally
appeared
________________________________________________________________________________

________________________________________________________________________________
to me known to be the individual ____ described in and who executed the within
and foregoing instrument, and acknowledged to me that ____________________
signed and sealed the same as ____________ free and voluntary act and deed, for
the uses and purposes therein mentioned.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal, the day and year first above written.

                                 _______________________________________________

         Notary Public in and for the State of ________________________________,
residing at __________________________.

STATE OF __________________________             }          INDIVIDUAL
     COUNTY OF _____________________                  ss.

         This is to certify that on this ______________ day of _________________
A.D. 19___, before me the undersigned, a Notary Public in and for the State of
___________________________, duly commissioned and qualified, personally
appeared

______________________________________________________________________________

______________________________________________________________________________
to me known to be the individual ____ described in and who executed the within
and foregoing instrument, and acknowledged to me that ____________________
signed and sealed the same as ____________ free and voluntary act and deed, for
the uses and purposes therein mentioned.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal, the day and year first above written.

                                          ____________________________________

<PAGE>

         Notary Public in and for the State of ________________________________,
residing at __________________________.

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