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                                                                  Exhibit 10.10

                   SERIES C PREFERRED STOCK PURCHASE AGREEMENT

         This SERIES C PREFERRED STOCK PURCHASE AGREEMENT (this "AGREEMENT") is
made as of March 7, 2000, by and between FREEI NETWORKS, INC., a Washington
corporation (the "COMPANY"), and the Investors listed on SCHEDULE I hereto (the
"Investors").

         THE PARTIES HEREBY AGREE AS FOLLOWS:

1.       PURCHASE AND SALE OF STOCK

         1.1      SALE AND ISSUANCE OF SERIES C STOCK

                  (a) The Company has adopted and filed with the Secretary of
State of the State of Washington the Certificate of Designation with the
designation of the Series C Convertible Preferred Stock (the "SERIES C STOCK")
in the form attached hereto as EXHIBIT A (the "CERTIFICATE OF DESIGNATION").

                  (b) Subject to the terms and conditions of this Agreement,
each Investor agrees severally to purchase, the number of shares listed on
Schedule I, and the Company agrees to sell and issue to each Investor, at the
Closing (as defined in Section 1.2(a)) a total of 2,545,430 shares of Series C
Stock at $19.643052 per share, for a total purchase price of $50,000,000.00.
Each Investor's purchase price and number of acquired shares of Series C Stock
are listed on Schedule I hereto which is incorporated herein by this reference.

         1.2      CLOSING

                  (a) The purchase and sale of the Series C Stock (the
"Closing") shall take place at the offices of Summit Law Group, PLLC, 1505
Westlake Avenue N., Suite 300, Seattle Washington 98109, after satisfaction of
the conditions set forth in Sections 4 and 5 on a date mutually acceptable to
the Company and the Investors, but in no event later than March 10, 2000.

                  (b) At the Closing, the Company shall deliver to the Investors
certificates representing 2,545,430 shares of Series C Stock against payment to
the Company of the purchase price therefor by wire transfer of funds or a bank
check payable to the Company's order. The certificates and the purchase price
shall be as indicated on Schedule I.

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2.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         The Company hereby represents and warrants to the Investors that,
except as set forth on a Schedule of Exceptions attached hereto as EXHIBIT B:

         2.1      ORGANIZATION, GOOD STANDING AND QUALIFICATION

         The Company is a corporation duly organized and validly existing under
the laws of the State of Washington and has all requisite corporate power and
authority to own and operate its properties and assets, to execute and deliver
this Agreement and the Investor Rights Agreement as amended by the First and
Second Amendments to Investor Rights Agreement, to issue and sell the Series C
Stock and the Common Stock issuable upon conversion thereof (the "CONVERSION
SHARES"), to carry out its obligations under this Agreement, the Investor Rights
Agreement, the Articles of Incorporation and the Certificate of Designation and
to carry on its business as presently conducted and as recently proposed to be
conducted. The Company is duly qualified to transact business and is in good
standing in each jurisdiction in which the failure to so qualify would have a
material adverse effect on its business or properties.

         2.2      CAPITALIZATION

         The authorized capital stock of the Company consists of the preferred
stock, common stock and rights described in paragraphs (a), (b) and (c) below.

                  (a)      PREFERRED STOCK

         There are 10,000,000 shares of preferred stock authorized, 4,812,074 of
which have been designated as Series A Stock, all of which is outstanding,
1,552,655 of which have been designated as Series B Stock, all of which is
outstanding and 2,545,430 of which have been designated as Series C Stock, none
of which is outstanding. The rights, privileges, and preferences of the
preferred stock generally and of the Series A, Series B and Series C Stock are
as stated in the Company's Articles of Incorporation, as amended, and the
Certificate of Designation.

                  (b)      COMMON STOCK

         As of Closing, there will be 200,000,000 shares of Common Stock
authorized, 26,879,000 shares of which are currently outstanding. Of the
authorized but unissued Common Stock, 9,624,148 shares are reserved for issuance
upon the conversion of the Series A Stock, 3,105,310 are reserved for issuance
upon the conversion of the Series B Stock and 2,545,430 will be reserved for
issuance upon conversion of the Series C Stock; 2,879,000 shares are reserved by

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board action for issuance upon the exercise of warrants granted to certain
investors (the "First Round Investors"); and 8,421,128 shares are reserved for
issuance upon the exercise of stock options granted or to be granted under the
Company's stock option plan (the "OPTION PLAN"); provided, however, that this
number includes 331,550 shares that have reserved by board action for issuance
upon the exercise of warrants granted to Lucent Technologies f/k/a Ascend
Communications, Inc. ("Lucent"); and 307,974 shares that have been reserved by
board action for issuance upon the exercise of warrants granted to Pacific Crest
Securities Inc. pursuant to an engagement letter executed March 16, 1999.

                  (c)      RIGHTS

         Except for the conversion privileges of the Series A Stock and Series B
Stock and other rights, privileges and agreements contemplated for the Series C
Stock pursuant to this Agreement, and as set forth in subsection 2.2(b), there
are not outstanding any options, warrants, subscriptions, rights (including
conversion or preemptive rights or first refusal rights), agreements for the
purchase or acquisition from the Company or by the Company of any shares of the
Company's capital stock or securities convertible into its capital stock or, to
the Company's knowledge, any voting agreements with respect to the Company's
securities.

         2.3      SUBSIDIARIES

         The Company does not presently own or control, directly or indirectly,
any interest in any other corporation, association, partnership or other
business or investment entity.

         2.4      AUTHORIZATION

         All corporate action necessary for the authorization, execution, and
delivery by the Company of this Agreement and the other agreements and
transactions provided for herein, the performance of all obligations of the
Company hereunder and thereunder, and the authorization, issuance, and delivery
of the Series C Stock and the Conversion Shares have been taken or will be taken
before the Closing. This Agreement and the other agreements provided for herein
constitute valid and legally binding obligations of the Company, enforceable in
accordance with their terms, subject to (a) the laws of bankruptcy and the laws
affecting creditors' rights generally, (b) the effect of public policy on the
indemnification provisions of Section 2.9 of the Investor Rights Agreement, and
(c) the availability of equitable remedies.

         2.5      VALID ISSUANCE OF PREFERRED AND COMMON STOCK

                  (a) The Series C Stock, when issued, sold, and delivered in
accordance with the terms hereof for the consideration expressed herein, will be
duly and validly issued, fully

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paid and nonassessable, and free of any liens or encumbrances created by the
Company. The Conversion Shares have been duly and validly reserved for issuance
and, upon issuance in accordance with the terms of the Articles of
Incorporation, as amended, and the Certificate of Designation, will be duly and
validly issued, fully paid and nonassessable, and free of any liens or
encumbrances created by the Company.

                  (b) The outstanding shares of Common Stock (i) have been duly
authorized and validly issued to the persons listed on the Schedule of
Exceptions, (ii) are fully paid and nonassessable, and (iii) were issued in
compliance with all applicable state and federal laws concerning the issuance of
securities.

         2.6      GOVERNMENTAL CONSENTS; COMPLIANCE WITH LAWS

         No consent, approval, order or authorization of, or registration,
qualification, designation, declaration or filing with, any federal, regional,
state or local governmental authority on the part of the Company is required in
connection with the consummation of the transactions contemplated by this
Agreement, except for filings, if any, required pursuant to applicable state
securities laws, which filings will be made within the required statutory
period, and the filing pursuant to Regulation D of the Securities and Exchange
Commission (the "SEC"), which filing will be effected within 15 days of the
Closing. The Company is not in violation of any applicable statute, rule,
regulation, order or restriction of any domestic or foreign government or any
instrumentality or agency thereof in respect of the conduct of its business or
the ownership of its properties which violation would materially and adversely
affect the business, assets, financial condition, or operations of the Company.

         2.7      LITIGATION

         There is no action, suit, claim, proceeding or investigation pending
or, to the Company's knowledge, currently threatened against the Company that
questions the validity of this Agreement or the other agreements provided for
herein or the right of the Company to enter into any of such agreements, or to
consummate the transactions provided for hereby or thereby, or that could,
individually or in the aggregate, have a material adverse effect on the
business, assets, financial condition or operations of the Company, or any
change in the current equity ownership of the Company, nor is the Company aware
that there is any basis for the foregoing. The foregoing includes, without
limitation, actions pending or threatened (or any basis therefor known to the
Company) involving the prior employment of the Company's employees, their use in
connection with the Company's business of any information or techniques
allegedly proprietary to any of their former employers, or their obligations
under any agreements with prior employers. There is no action, suit, proceeding
or investigation by the Company currently pending or that the Company intends to
initiate. The Company is not a party or subject to the

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provisions of any order, writ, injunction, judgment or decree of any court or
government agency or instrumentality that could have a material adverse effect
on its business, assets, financial condition or operations.

         2.8      INTELLECTUAL PROPERTY

         To its knowledge, the conduct of the Company's business does not
conflict with or infringe on the patents, trademarks, service marks, trade
names, copyrights, trade secrets, proprietary rights and processes (the
"INTELLECTUAL PROPERTY") of others. To its knowledge, the Company has sufficient
title to or rights to use all Intellectual Property necessary for the conduct of
its business. The Company has not granted any options, licenses or agreements of
any kind relating to any of its Intellectual Property, nor is the Company bound
by or a party to any options, licenses or agreements with respect to the
Intellectual Property of any other person or entity. The Company is not aware
that any of its employees is obligated under any contract (including licenses,
covenants or commitments of any nature) or other agreement, or subject to any
judgment, decree or order of any court or administrative agency, that would
interfere with their duties to the Company or that would conflict with the
Company's business. The execution or delivery of this Agreement, the carrying on
of the Company's business by the employees of the Company, and the conduct of
the Company's business as proposed, will not, to the Company's knowledge,
conflict with or result in a breach of the terms, conditions or provisions of,
or constitute a default under, any contract, covenant or instrument under which
any employee is now obligated. The Company does not believe it is or will be
necessary to use any inventions, trade secrets or proprietary information of any
of its employees made prior to their employment by the Company, except for
inventions, trade secrets or proprietary information that have been assigned to
the Company.

         2.9      COMPLIANCE WITH OTHER INSTRUMENTS

         The Company is not in violation of any provision of its Articles of
Incorporation or Bylaws or in violation or default of any provision of any
instrument, judgment, order, writ, decree or contract to which it is a party or
by which it is bound, or in violation of any provision of federal or state
statute, rule or regulation applicable to the Company, which violation or
default would have a material adverse effect on its business, assets, financial
condition or operations. The execution, delivery, and performance of this
Agreement and the consummation of the transactions provided for herein will not
result in any such violation or default or require any consent under or be in
conflict with or constitute, with or without the passage of time and giving of
notice, either a violation or default under any such provision, instrument,
judgment, order, writ, decree or contract or an event which results in the
creation of any lien, charge or encumbrance upon any assets of the Company which
violation, default, lien, charge

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or encumbrance, individually or in the aggregate with any other such violation,
default, lien, charge or encumbrance would have a material adverse effect on its
business, assets, financial condition or operations.

         2.10     AGREEMENTS; ACTION

                  (a) There are no agreements, understandings, instruments,
contracts or proposed transactions to which the Company is a party or by which
it is bound that involve obligations or payments to the Company in excess of
$200,000.

                  (b) The Company has not (i) declared or paid any dividends, or
authorized or made any distribution upon or with respect to any class or series
of its capital stock, (ii) made any loans or advances to any person, other than
in the ordinary course of business, (iii) sold, exchanged or otherwise disposed
of any of its assets or rights, other than in the ordinary course of business,
(iv) redeemed or obligated itself to redeem any of its capital stock (other than
the Series A Stock and Series B Stock), or (v) incurred any indebtedness for
money borrowed or incurred any other liabilities in excess of $200,000.

                  (c) Except for agreements explicitly contemplated hereby,
there are no agreements, understandings or proposed transactions between the
Company and any of its officers, directors, affiliates or any affiliate thereof.

         2.11     DISCLOSURE

         The Company has fully provided the Investors and its attorneys and
agents with all the information in the Company's possession that they have
requested for deciding whether to purchase the Series C Stock. This Agreement,
the Exhibits hereto and all other documents delivered by the Company to the
Investors or its attorneys or agents in connection herewith or therewith or with
the transactions provided for herein or therein, do not contain any untrue
statement of a material fact nor omit to state a material fact necessary in
order to make the statements contained herein or therein, in light of the
circumstances under which they were made, not misleading. There are no facts
which (individually or in the aggregate) materially adversely affect the
business, assets, financial condition or operations of the Company that have not
been set forth in this Agreement, the Exhibits hereto or other documents
delivered to the Investors or its attorneys or agents in connection herewith.

         2.12     REGISTRATION RIGHTS

         Except as provided in the Investor Rights Agreement, as amended by the
First and Second Amendments to Investor Rights Agreement, the Company has not
granted or agreed to grant any registration rights to any person or entity.

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         2.13     CORPORATE DOCUMENTS

         The Certificate of Designation is, or at the Closing will be, in the
form attached hereto as EXHIBIT A hereto. The Articles of Incorporation of the
Company, as amended, are in the form attached hereto as EXHIBIT C hereto. The
Bylaws of the Company are in the form attached hereto as EXHIBIT D.

         2.14     TITLE TO PROPERTY AND ASSETS; CONDITION OF ASSETS

         The Company owns its property and assets free and clear of all
mortgages, liens, loans and encumbrances, except liens and encumbrances that
arise in the ordinary course of business and do not materially impair the
Company's ownership or use of such property or assets. With respect to the
property and assets it leases, the Company is in compliance with such leases in
all material respects and holds a valid leasehold interest free of any liens,
claims or encumbrances. All facilities and all material machinery, equipment,
fixtures, vehicles, and other properties owned, leased or used by the Company
are in good operating condition and repair and are reasonably fit and usable for
the purposes for which they are being used.

         2.15     LICENSES

         The Company has all governmental licenses and permits (federal, state,
foreign, and local) the failure to obtain which would have a material adverse
effect on its business, assets, financial condition or operations, and such
licenses and permits are in full force and effect. No violations have been
communicated to the Company in respect of such licenses or permits and no
proceeding is pending or, to the Company's knowledge, threatened toward the
revocation of any of such licenses or permits.

         2.16     FINANCIAL STATEMENTS

         The Company has delivered to the Investors its unaudited balance sheets
as at December 31, 1999 and December 31, 1998, and unaudited statements of
income and cash flows for each of the years ended December 31, 1999 and December
31, 1998, respectively (collectively, the "FINANCIAL STATEMENTS"). The Financial
Statements, together with the notes thereto, are complete and correct in all
material respects, have been prepared consistent with methods used in prior
years and present fairly the financial condition and position of the Company as
of the dates and for the periods indicated.

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         2.17     UNDISCLOSED LIABILITIES

         Except as and to the extent reflected or reserved against in the
Financial Statements, the Company did not have, as of the respective dates of
the Financial Statements, any material debts, liabilities or obligations of any
nature, whether accrued, absolute, contingent or otherwise, and whether due or
to become due, including, without limitation, liabilities or obligations on
account of taxes or other governmental charges or penalties, interest or fines
thereon or in respect thereof required by generally accounting principles to be
shown or reflected thereon that were not so shown or reflected. The Company does
not know and does not have any reasonable grounds to know of any basis for any
assertion against the Company of any material debt, liability or obligation of
any nature or in any amount not fully reflected or reserved against in the
Financial Statements or disclosed in this Agreement.

         2.18     CHANGES

         Since December 31, 1999, there has not been:

                  (a) Any change in the business, assets, financial condition or
operations of the Company, except changes in the ordinary course of business,
none of which has been materially adverse, and all of which in the aggregate
have not been materially adverse, to the Company;

                  (b) Any damage, destruction or loss (whether or not covered by
insurance) materially and adversely affecting the business, assets, financial
condition or operations of the Company;

                  (c) Any material increase in the compensation or rate of
compensation or commissions payable or to become payable by the Company to any
of its directors, officers, salaried employees, sales persons or agents, or any
hiring of any employee at a salary in excess of $150,000 per annum, or any
payment in excess of $50,000 of any bonus, profit-sharing amount or other
extraordinary compensation to any employee, or any material change in any then
existing bonus, profit-sharing, retirement or other similar plan, agreement or
arrangement, or any adoption of or entry into of any new bonus, profit-sharing,
group life or health insurance, or other similar plan, agreement or arrangement;

                  (d) Any material change in the accounting methods or practices
followed by the Company;

                  (e) Any material debt, obligation or liability (whether
absolute or contingent) incurred by the Company (whether or not presently
outstanding) except (i) current liabilities incurred, and obligations under
agreements entered into, in the ordinary course of business and

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(ii) obligations or liabilities entered into or incurred in connection with the
execution of this Agreement;

                  (f) Any sale, lease, abandonment or other disposition by the
Company of any real property or, other than in the ordinary course of business,
of any equipment or other operating properties or any sale, assignment,
transfer, license or other disposition by the Company of any Intellectual
Property or other intangible asset;

                  (g) Any labor trouble, strike or any other occurrence, event
or condition of any similar character that materially and adversely affects or
may materially and adversely affect the business, assets, financial condition or
prospects of the Company;

                  (h) Any change, except in the ordinary course of business, in
the contingent obligations of the Company by way of guaranty, endorsement,
indemnity, warranty or otherwise;

                  (i) Any waiver by the Company of a valuable right or a
material debt owed to it except in the ordinary course of business;

                  (j) Any direct or indirect loans made by the Company to any
shareholder, employee, officer or director of the Company, other than advances
made in the ordinary course of business; or

                  (k) Any declaration or payment of any dividend or other
distribution of the assets of the Company.

         2.19     EMPLOYEE BENEFIT PLANS

         The Company does not have any "employee benefit plan" as defined in the
Employee Retirement Income Security Act of 1974, as amended.

         2.20     TAXES

         The Company has filed all tax returns (federal, state, foreign, and
local) required to be filed by it and all taxes shown to be due and payable on
such returns or on any assessments received by the Company and all other taxes
(federal, state, foreign, and local) due and payable by the Company on or before
the date hereof have been paid. There are no agreements, waivers or other
arrangements providing for an extension of time with respect to the assessment
of any tax or deficiency against the Company, nor are there any actions, suits,
proceedings, investigations or claims now pending against the Company in respect
of any tax or assessment, or, to the Company's knowledge, any matters under
discussion within any federal, state, foreign

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or local authority relating to any taxes or assessments, or any claims for
additional taxes or assessments asserted by any such authority. The provisions
made for taxes in the Financial Statements are sufficient for the payment of all
unpaid federal, state, foreign, and local taxes of the Company for all periods
prior to such date.

         2.21     MINUTES

         The minutes of the Company reflect all meetings of directors and
shareholders since the incorporation of the Company and reflect all transactions
referred to in such minutes accurately in all material respects.

         2.22     BROKERS OR FINDERS

         The Company has not incurred and will not incur, directly or
indirectly, any liability for brokers' or finders' fees, agents' commissions or
other similar charges in connection with this Agreement or the transactions
contemplated hereby.

         2.23     EMPLOYEES

         The Company has no collective bargaining agreements with any of its
employees. There is no labor union organizing activity ending or, to the
Company's knowledge, threatened with respect to the Company. No employee has any
agreement or contract, written or verbal, regarding his or her employment. To
the Company's knowledge, no employee of the Company, nor any consultant with
whom the Company has contracted, is in violation of any term of any employment
contract, proprietary information agreement, patent disclosure agreement or any
other agreement relating to the right of any such individual to be employed by,
or to contract with, the Company because of the nature of the business to be
conducted by the Company and, to the Company's knowledge, the continued
employment by the Company of its present employees, and the performance of the
Company's contracts with its independent contractors, will not result in any
such violation. The Company has not received any notice alleging that any such
violation has occurred. No employee of the Company has been granted the right to
continued employment by the Company or to any material compensation following
termination of employment with the Company. The Company is not aware that any
officer or key employee, or that any group of key employees, intends to
terminate their employment with the Company, nor does the Company have a present
intention to terminate the employment of any officer, key employee or group of
key employees.

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         2.24     ENVIRONMENTAL AND SAFETY LAWS

         To its knowledge, the Company is not in violation of any applicable
statute, law or regulation relating to the environment or occupational health
and safety, and, to its knowledge, no material expenditures are or will be
required to comply with any such existing statute, law or regulation.

         2.25     OFFERING VALID

         Assuming the accuracy of the representations and warranties of the
Investors contained in Section 3 hereof, the offer, sale, and issuance of the
Series C Stock and the Conversion Shares will be exempt from the registration
requirements of the Securities Act of 1933, as amended (the "SECURITIES ACT"),
and will have been registered or qualified (or are exempt from registration and
qualification) under the registration, permit or qualification requirements of
all applicable state securities laws. Neither the Company nor any agent on its
behalf has solicited or will solicit any offers to sell or has offered to sell
or will offer to sell all or any part of the Series C Stock to any person or
persons so as to bring the sale of such Series C Stock by the Company within the
registration provisions of the Securities Act.

         2.26     REAL PROPERTY HOLDING CORPORATION

         The Company is not a real property holding corporation within the
meaning of Internal Revenue Code Section 897(c)(2) and any regulations
promulgated thereunder.

         2.27     INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

         None of Robert McCausland, Steven Bourg, Gus Bourg or Ned Menninger has
been subject and is not currently subject to any order, judgment or decree, not
subsequently revised, suspended or vacated, of any court or any governmental
agency that could materially adversely affect the business of the Company as
presently conducted or as proposed to be conducted.

3.       REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

         Each Investor hereby represents and warrants that:

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         3.1      AUTHORIZATION

         All acts and conditions necessary for the authorization, execution,
delivery, and consummation by the Investor of this Agreement and the other
agreements and transactions contemplated herein have been, or will before the
Closing be, taken, performed, and obtained. This Agreement and the other
agreements contemplated herein constitute valid and legally binding obligations
of the Investor, enforceable in accordance with their terms, subject to (a) the
laws of bankruptcy and the laws affecting creditors' rights generally, (b) the
effect of public policy on the indemnification provisions of Section 2.9 of the
Investor Rights Agreement, and (c) the availability of equitable remedies. The
Investor has full power and authority to execute, deliver, and perform its
obligations under this Agreement and the other agreements contemplated herein
and to own the Series C Stock. The execution, delivery, and performance of this
Agreement and the other agreements contemplated herein and the consummation of
the transactions contemplated hereby and thereby (including the ownership of
Series C Stock) by the Investor does not violate any provision of, or constitute
a material breach of or default under, any term, condition or provision of any
agreement, indenture or other instrument to which the Investor is a party, or by
which it or its properties or assets are bound, or of any order, judgment or
decree against or binding upon the Investor.

         3.2      PURCHASE ENTIRELY FOR OWN ACCOUNT

         The Series C Stock to be received by the Investor and the Conversion
Shares (collectively, the "SECURITIES") will be acquired for investment for the
Investor's own account and not with a view to the distribution of any part
thereof as such term is used under Section 2(11) of the Securities Act. The
Investor has no present intention of selling, granting any participation in, or
otherwise distributing the Securities in a manner contrary to the Securities
Act, or applicable state securities laws.

         3.3      INVESTMENT EXPERIENCE

         Each Investor is an investor in securities of companies in the
development stage, qualifies as an "accredited investor" as defined in Rule 501
of Regulation D promulgated by the SEC, and acknowledges that the Securities are
a speculative risk. Each Investor is able to fend for itself in the transactions
contemplated by this Agreement, can bear the economic risk of its investment
(including possible complete loss of such investment) for an indefinite period
of time, and has such knowledge and experience in financial or business matters
that it is capable of evaluating the merits and risks of the investment in the
Securities. Each Investor understands that the Securities have not been
registered under the Securities Act, or under the securities laws of any
jurisdiction, by reason of reliance upon certain exemptions, and that the
reliance of the Company on such exemptions is predicated upon the accuracy of
each Investor's representations and

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warranties in this Section 3. Notwithstanding the foregoing, to the extent an
Investor was formed for the purpose of acquiring such securities, such investor
represents that all members, shareholders or investors within such entity are
"accredited investors" as defined in Rule 501 of Regulation D.

         3.4      RESTRICTED SECURITIES

         Each Investor understands that the Securities are characterized as
"restricted securities" under the federal securities laws inasmuch as they are
being acquired from the Company in a transaction not involving a public offering
and that, under such laws and applicable regulations, such securities may be
transferred or resold without registration under the Securities Act only in
certain limited circumstances and in accordance with the terms and conditions
set forth in the legend described in Section 3.5. In this connection, the
Investor represents that it is familiar with SEC Rule 144, as presently in
effect, and understands the resale limitations imposed thereby and by the
Securities Act.

         3.5      LEGENDS

         It is understood that the certificates evidencing the Securities may
bear one or all of the following legends:

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR APPLICABLE STATE LAW, AND NO
INTEREST THEREIN MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED OR
OTHERWISE TRANSFERRED UNLESS (i) THERE IS AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION
INVOLVING SAID SECURITIES OR (ii) SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.
AFTER MARCH 2002, THIS LEGEND WILL BE CANCELED, AND A CERTIFICATE FREE FROM SUCH
LEGEND ISSUED TO THE HOLDER HEREOF UPON COMPLIANCE WITH THE FOLLOWING
CONDITIONS: (a) SURRENDER OF THIS CERTIFICATE TO THIS CORPORATION IN THE MANNER
AND AT THE PLACE DESIGNATED FOR CANCELLATION, (b) A REPRESENTATION BY THE HOLDER
THAT IT HAS BENEFICIALLY HELD THE SECURITIES EVIDENCED BY THIS CERTIFICATE FOR
NOT LESS THAN TWO YEARS, AND THAT IT IS NOT, AND HAS NOT WITHIN THE PRECEDING 90
DAYS BEEN, AN AFFILIATE (AS THAT TERM IS DEFINED FOR PURPOSES OF RULE 144 UNDER
THE ACT OR ANY SUCCESSOR RULE) OF THIS CORPORATION, AND (c) AN UNDERTAKING THAT
IF AT ANY TIME THE HOLDER SHALL AGAIN BECOME AN AFFILIATE OR OTHERWISE CEASE TO
ENJOY FREE TRANSFERABILITY OF SUCH SECURITIES UNDER RULE 144 EITHER

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BY REASON OR CHANGE OF CIRCUMSTANCE OR AMENDMENT OF RULE 144, IT SHALL FORTHWITH
SURRENDER ANY UNLEGENDED CERTIFICATES(S) RECEIVED BY IT IN RESPECT OF THE
SECURITIES EVIDENCED BY THIS CERTIFICATE FOR IMPOSITION OF ANY APPROPRIATE
LEGEND.

THE COMPANY HAS COMMON STOCK AND PREFERRED STOCK AUTHORIZED. THE FULL STATEMENT
OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL
OR OTHER SPECIAL RIGHTS AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS
THEREOF (THE "STATEMENT OF RIGHTS AND PREFERENCES") OF THE SHARES OF EACH SUCH
SERIES OR CLASS OF STOCK IS SET FORTH IN THE ARTICLES OF INCORPORATION AND
CERTIFICATE OF DESIGNATION OF THE COMPANY, AS AT ANY TIME AMENDED, AND ANY
EFFECTIVE STATEMENT OF RELATIVE RIGHTS AND PREFERENCES OF PREFERRED STOCK, ON
FILE IN THE OFFICE OF THE SECRETARY OF STATE OF THE STATE OF WASHINGTON. THE
COMPANY WILL FURNISH COPIES OF THE STATEMENT OF RIGHTS AND PREFERENCES TO THE
RECORD HOLDER OF THIS CERTIFICATE WITHOUT CHARGE UPON WRITTEN REQUEST TO THE
COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS OR REGISTERED OFFICE.

         3.6      RESIDENCY

         For purposes of the application of state and international securities
laws, each Investor represents that it is a resident of the state or country
indicated on Schedule I hereto.

         3.7      ACCESS TO INFORMATION

         Each Investor has received and reviewed information about the Company,
and has had an opportunity to discuss the Company's business, management, and
financial affairs with its management and to review the Company's facilities.
Each Investor understands that these discussions, as well as any written
information issued by the Company, were intended to describe the aspects of the
Company's business and prospects that the Company considers material, but were
not necessarily exhaustive. The foregoing, however, does not limit or modify the
representations and warranties of the Company in Section 2 of this Agreement or
the right of the Investors to rely thereon.

4.       CONDITIONS OF INVESTORS' OBLIGATIONS AT THE CLOSING

         The obligations of the Investors under subsection 1.l(b) are subject to
the fulfillment at or before the Closing (unless otherwise specified) of each of
the following conditions, unless waived by the Investors:

                                       14
<PAGE>

         4.1      REPRESENTATIONS AND WARRANTIES

         The representations and warranties of the Company contained in Section
2 shall be true in all material respects on and as of the Closing with the same
effect as though such representations and warranties had been made as of the
date of the Closing.

         4.2      PERFORMANCE

         The Company shall have performed and complied with all agreements,
obligations and conditions contained in this Agreement that are required to be
performed or complied with by it on or before the Closing.

         4.3      COMPLIANCE CERTIFICATE

         The President and Chief Executive Officer of the Company, on behalf of
the Company, shall deliver to the Investors at the Closing a certificate that
the conditions specified in Sections 4.1 and 4.2 have been fulfilled and stating
that there has been no material adverse change in the business, assets,
financial condition or operations of the Company from the date of this Agreement
to the time of the Closing.

         4.4      QUALIFICATIONS

         The offer and sale of the Securities to the Investors pursuant to this
Agreement shall be qualified or exempt from qualification under all applicable
federal and state securities laws.

         4.5      PROCEEDINGS AND DOCUMENTS

         All corporate and other proceedings in connection with the transactions
contemplated at the Closing and all documents incident thereto, including
evidence of filing the Certificate of Designation with the Secretary of State of
the State of Washington, shall be reasonably satisfactory in form and substance
to the Investors or their counsel, and the Investors or their counsel shall have
received all counterpart original and certified or other copies of such
documents as they may reasonably request.

         4.6      INVESTOR RIGHTS AGREEMENT

         The Company, the holders of Series A Stock and Series B Stock, and the
Investors shall have entered into a Second Amendment to Investor Rights
Agreement in the form attached hereto as EXHIBIT E (the "INVESTOR RIGHTS
AGREEMENT").

                                       15
<PAGE>

         4.7      OPINION OF COMPANY COUNSEL

         The Investors shall have received from Summit Law Group, PLLC, counsel
for the Company, an opinion, dated as of the Closing, in form and substance
satisfactory to the Investors, to the effect that:

                  (a) The Company is a corporation, validly existing under the
laws of the State of Washington, and the Company has the requisite corporate
power and corporate authority to conduct its business as now being conducted.

                  (b) The Company is qualified to do business in any state or
jurisdiction of the United States in which the failure to so qualify would have
a material adverse effect on its business or properties.

                  (c) The Company has the requisite corporate power and
corporate authority to execute, deliver, and perform this Agreement and the
Investor Rights Agreement, as amended. All corporate action necessary for the
authorization, execution and delivery by the Company of this Agreement and the
Investor Rights Agreement and the authorization, issuance, and delivery of the
Series C Stock being sold hereunder and the Conversion Shares has been taken,
and this Agreement and the Investor Rights Agreement have been duly and validly
authorized, executed, and delivered by the Company and constitute valid and
legally binding obligations of the Company, enforceable against the Company in
accordance with their terms, except as enforceability may be limited or affected
by applicable laws relating to or affecting the enforcement of creditors' rights
and by equitable principles.

                  (d) The Series C Stock, when issued, sold, and delivered in
accordance with the terms hereof for the consideration expressed herein, will be
duly and validly issued, fully paid, and nonassessable. The Conversion Shares
have been duly and validly reserved for issuance and, upon issuance in
accordance with the terms of the Articles of Incorporation and Certificate of
Designation, will be duly and validly issued, fully paid, and nonassessable.

                  (e) The authorized capital stock of the Company consists of
the preferred stock, common stock and rights described in paragraphs (i), (ii)
and (iii) below:

                           (i)      Preferred Stock

         There are 10,000,000 shares of preferred stock authorized, 4,812,074 of
which have been designated as Series A Stock, all of which is outstanding,
1,552,655 of which have been

                                       16
<PAGE>

designated as Series B Stock, all of which is outstanding and 2,545,430 of which
have been designated as Series C Stock, none of which is outstanding.

                           (ii)     Common Stock

         As of Closing, there will be 200,000,000 shares of Common Stock
authorized, 26,879,000 shares of which are currently outstanding. Of the
authorized but unissued Common Stock, 9,624,148 shares are reserved for issuance
upon the conversion of the Series A Stock, 3,105,310 are reserved for issuance
upon the conversion of the Series B Stock and 2,545,430 will be reserved for
issuance upon conversion of the Series C Stock; 2,879,000 shares are reserved by
board action for issuance upon the exercise of warrants granted to certain
investors (the "First Round Investors"); and 8,421,128 shares are reserved for
issuance upon the exercise of stock options granted or to be granted under the
Company's stock option plan (the "OPTION PLAN"); provided, however, that this
number includes 331,550 shares that have reserved by board action for issuance
upon the exercise of warrants granted to Lucent Technologies f/k/a Ascend
Communications, Inc. ("Lucent"); and 307,974 shares that have been reserved by
board action for issuance upon the exercise of warrants granted to Pacific Crest
Securities Inc.

pursuant to an engagement letter executed March 16, 1999.

                           (iii)    Rights

         Except for the conversion privileges and right of first refusal of the
Series A Stock, Series B Stock and other rights, privileges and agreements
contemplated pursuant to this Agreement or as enumerated in subparagraph
(e)(ii), there are not outstanding any options, warrants, subscriptions, rights
(including conversion or preemptive rights or first refusal rights) agreements
for the purchase or acquisition from the Company or by the Company of any shares
of the Company's capital stock or securities convertible into its capital stock,
or, to such counsel's knowledge, any voting agreements with respect to the
Company's securities.

                  (f) The rights, privileges, and preferences of the preferred
stock generally and of the Series A, Series B and Series C Stock are as stated
in the Company's Articles of Incorporation, as amended, and the Certificate of
Designation.

                  (g) Based in part upon the representations of the Investors
and on the facts and circumstances contemplated by this Agreement, and except
that such counsel need give no opinion as to whether information provided to the
Investors was sufficient and assuming that the offer and sale of the Series C
Stock is a discrete transaction and not integrated with any other offering or
sale of securities by the Company, the offer and sale of the Series C Stock to
the Investors pursuant to the terms of this Agreement are exempt from the
registration requirements of Section 5 of the Securities Act.

                                       17

<PAGE>

5.   CONDITIONS OF THE COMPANY'S OBLIGATIONS AT THE CLOSING

     The obligations of the Company to the Investors under this Agreement are
subject to the fulfillment on or before the Closing of the following conditions:

     5.1 REPRESENTATIONS AND WARRANTIES

     The representations and warranties of the Investors contained in Section 3
shall be true in all material respects on and as of the Closing with the same
effect as though such representations and warranties had been made as of the
Closing.

     5.2 PAYMENT OF PURCHASE PRICE

     The Investors shall have delivered the purchase price specified in
subsection 1.1(b) to be delivered at the Closing, in the form of a bank check
payable to the Company's order or bank wire transfer to the Company's designated
account.

     5.3 SECURITIES LAWS QUALIFICATION

     The offer and sale to the Investors of the Securities shall be qualified or
exempt from qualification under all applicable federal and state securities
laws.

     5.4 PERFORMANCE

     The Investors shall have performed and complied with all agreements,
obligations, and conditions contained in this Agreement that are required to be
performed or complied with by it on or before the Closing.

6.   MISCELLANEOUS

     6.1 PRESS RELEASES

         The Investors and the Company agree to consult with each other prior to
the dissemination of any press release or public communications concerning this
Agreement, the Investors' Rights Agreement or any ancillary agreement or the
transactions contemplated by this Agreement, the Investors' Rights Agreement or
any ancillary agreement.

                                       18

<PAGE>

     6.2 USE OF PROCEEDS

     The Company shall use the proceeds of the sale of the Series C Stock under
this Agreement as working capital to be used for the development of the Company.

     6.3 SURVIVAL OF WARRANTIES

     The warranties and representations contained in or made pursuant to this
Agreement shall survive the execution and delivery of this Agreement and the
Closing for a period of two years after Closing.

     6.4 SUCCESSORS AND ASSIGNS

     The terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of the parties.
Nothing in this Agreement express or implied, is intended to confer upon any
party other than the parties hereto or their respective successors and assigns
any rights, remedies, obligations or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement. The Company may not
assign or transfer any of its rights under the Agreement without the consent of
the majority of the Investors, which consent shall not be unreasonably withheld.

     6.5 GOVERNING LAW

     This Agreement shall be governed by and construed under the laws of the
State of Washington as applied to agreements among Washington residents entered
into and to be performed entirely within the State of Washington.

     6.6 COUNTERPARTS

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

     6.7 TITLES AND SUBTITLES

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

                                       19

<PAGE>

     6.8 NOTICES

     Any and all notices required or permitted to be given to a party pursuant
to the provisions of this Agreement will be in writing and will be effective and
deemed to provide such party sufficient notice under this Agreement on the
earliest of the following: (i) at the time of personal delivery, if delivery is
in person; (ii) at the time of transmission by facsimile, addressed to the other
party at its facsimile number specified herein (or hereafter modified by
subsequent notice to the parties hereto), with confirmation of receipt made by
both telephone and printed confirmation sheet verifying successful transmission
of the facsimile; (iii) one business day after deposit with an express overnight
courier for deliveries within a country, or two business days after such deposit
for international deliveries or (iv) three business days after deposit in mail
by certified mail (return receipt requested) or equivalent for deliveries within
a country.

     All notices for international delivery will be sent by facsimile or by
express courier. Any party hereto (and such party's permitted assigns) may be
notice so given change its address for future notices hereunder. Notice shall
conclusively be deemed to have been given in the manner set forth above.

     6.9 DUE DILIGENCE EXPENSES; ATTORNEYS' AND ACCOUNTANTS' FEES

     The Company shall reimburse at the Closing the reasonable due diligence
costs, including legal and accounting fees and expenses, incurred by the
Investors in an amount not to exceed $15,000. If the parties fail to close the
transactions contemplated by this Agreement, each party shall be responsible for
its own expenses.

     6.10 FINDER'S FEES

     Each party represents that it neither is, nor will be, obligated for a
finder's fee or commission in connection with this transaction, except as
described in Section 6.1 of the Schedule of Exceptions to this Agreement. Each
Investor agrees, severally, but not jointly, to indemnify and hold the Company
harmless from any liability for any commission or compensation in the nature of
a finder's fee (and the costs and expenses of defending against such liability
or asserted liability) for which such Investor or any of its officers, partners,
employees or representatives is responsible. The Company agrees to indemnify and
hold the Investors harmless from any liability for any commission or
compensation in the nature of a finder's fee (and the costs and expenses of
defending against such liability or asserted liability) for which the Company or
any of its officers, employees or representatives is responsible.

                                       20

<PAGE>

     6.11 AMENDMENTS AND WAIVERS

     After the Closing, any term of this Agreement may be amended and the
observance of any term may be waived (either generally or in a particular
instance and either retroactively or prospectively) only with the written
consent of the Company and the holders of a majority of the aggregate shares of
Series C Stock and/or the Conversion Shares (excluding shares of Common Stock
that are no longer "restricted securities" under the Securities Act). Any
amendment or waiver effected in accordance with this Section 6.10 shall be
binding upon each holder of any securities purchased under this Agreement at the
time outstanding (including securities into which such securities are
convertible), each future holder of any such securities, and the Company.

     6.12 SEVERABILITY

     If one or more provisions of this Agreement are held to be unenforceable
under applicable law, such provision shall be excluded from this Agreement, and
the balance of this Agreement shall be interpreted as if such provision were so
excluded and shall be enforceable in accordance with its terms.

     6.13 ENTIRE AGREEMENT

     This Agreement, including the Exhibits attached hereto, and the other
documents delivered at the Closing constitute the full and entire understanding
and agreement between the parties with respect to the subject matter hereof and
supersede all prior agreements with respect to the subject matter hereof.

                                       21

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

                                    COMPANY:

                                    FREEI NETWORKS, INC.

                                    By: __________________________________
                                        Bob McCausland
                                        President and Chief Executive Officer

                                    909 S. 336th Street, Suite 110
                                    Federal Way, Washington 98003
                                    Fax (253) 661-3431

                                       22

<PAGE>

SERIES C INVESTORS:

                                    EAGLE RIVER INVESTMENTS, LLC

                                    BY:_________________________
                                    PRINTED NAME:
                                    TITLE:

<PAGE>

SERIES C INVESTORS:

                                    CEDAR GROVE INVESTMENTS, LLC

                                    BY:_________________________
                                    PRINTED NAME:
                                    TITLE:

<PAGE>

SERIES C INVESTORS:

                                    CAPITAL RESEARCH AND MANAGEMENT
                                    COMPANY, ON BEHALF OF NEW
                                    ECONOMY FUND

                                    By:_________________________
                                    Printed Name:  Michael J. Downer
                                    Title: Secretary

<PAGE>

SERIES C INVESTORS:                 INFOSPACE VENTURE CAPITAL FUND
                                    2000, LLC, BY INFOSPACE.COM,
                                    INC. AS ITS SOLE MEMBER

                                    BY:  ________________________
                                    PRINTED NAME:  ____________
                                    TITLE:  _________________________

<PAGE>

SERIES C INVESTORS:

                                     LAKESIDE I

                                     By:  ________________________
                                     Printed Name:   ____________
                                     Title:   ________________________

<PAGE>

SERIES C INVESTORS:

                                      DOLCE FREEI, L.L.C.

                                      BY:   ________________________
                                      PRINTED NAME:  ____________
                                      TITLE:   _________________________

<PAGE>

SERIES C INVESTORS:

                                      REMO INTERNATIONAL INC.

                                      By:  ________________________
                                      Printed Name:  ____________
                                      Title:   ________________________

<PAGE>

SERIES C INVESTORS:

                                      ROBERT PACK

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

<PAGE>

SERIES C INVESTORS:

                                      PPC PARTNERS LLC

                                      By:  ________________________
                                      Printed Name:  ____________
                                      Title:   ________________________

<PAGE>

SERIES C INVESTORS:

                                      WASHINGTON MUTUAL

                                      By: ________________________
                                      Printed Name:  Craig E. Tall
                                      Title: Vice Chair

<PAGE>

SERIES C INVESTORS:                             INTERNET VENTURES LLC

                                                BY:________________________
                                                PRINTED NAME:

                                                TITLE:

<PAGE>

SERIES C INVESTORS:                             KELLETT PARTNERS, L.P.

                                                BY: ________________________
                                                PRINTED NAME:

                                                TITLE:

<PAGE>

SERIES C INVESTORS:                             CLEAR FIR PARTNERS, L.P.

                                                By:________________________
                                                Printed Name:

                                                Title:

<PAGE>

SERIES C INVESTORS:                             GARY V. SLEDGE

                                                 ________________________

<PAGE>

SERIES C INVESTORS:                             CASCADE GROUP

                                                By:________________________
                                                Printed Name:

                                                Title:

<PAGE>

SERIES C INVESTORS:                             CARL STORK

                                                 ________________________

<PAGE>

                              Freei Networks, Inc.

                   SERIES C PREFERRED STOCK PURCHASE AGREEMENT

                                      Dated

                                      as of

                                  March 7, 2000

<PAGE>

                                TABLE OF CONTENTS
                                -----------------
<TABLE>
<CAPTION>

                                                                                                               PAGE
                                                                                                               ----

<S>                                                                                                              <C>
1.    PURCHASE AND SALE OF STOCK..................................................................................1
   1.1      SALE AND ISSUANCE OF SERIES C STOCK...................................................................1
   1.2      CLOSING...............................................................................................1

2.    REPRESENTATIONS AND WARRANTIES OF THE COMPANY...............................................................2
   2.1      ORGANIZATION, GOOD STANDING AND QUALIFICATION.........................................................2
   2.2      CAPITALIZATION........................................................................................2
   2.3      SUBSIDIARIES..........................................................................................3
   2.4      AUTHORIZATION.........................................................................................3
   2.5      VALID ISSUANCE OF PREFERRED AND COMMON STOCK..........................................................4
   2.6      GOVERNMENTAL CONSENTS; COMPLIANCE WITH LAWS...........................................................4
   2.7      LITIGATION............................................................................................4
   2.8      INTELLECTUAL PROPERTY.................................................................................5
   2.9      COMPLIANCE WITH OTHER INSTRUMENTS.....................................................................5
   2.10     AGREEMENTS; ACTION....................................................................................6
   2.11     DISCLOSURE............................................................................................6
   2.12     REGISTRATION RIGHTS...................................................................................7
   2.13     CORPORATE DOCUMENTS...................................................................................7
   2.14     TITLE TO PROPERTY AND ASSETS; CONDITION OF ASSETS.....................................................7
   2.15     LICENSES..............................................................................................7
   2.16     FINANCIAL STATEMENTS..................................................................................7
   2.18     CHANGES...............................................................................................8
   2.19     EMPLOYEE BENEFIT PLANS................................................................................9
   2.20     TAXES.................................................................................................9
   2.21     MINUTES..............................................................................................10
   2.22     BROKERS OR FINDERS...................................................................................10
   2.23     EMPLOYEES............................................................................................10
   2.24     ENVIRONMENTAL AND SAFETY LAWS........................................................................11
   2.25     OFFERING VALID.......................................................................................11
   2.26     REAL PROPERTY HOLDING CORPORATION....................................................................11
   2.27     INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS.............................................................11

3.    REPRESENTATIONS AND WARRANTIES OF THE INVESTOR.............................................................11
   3.1      AUTHORIZATION........................................................................................12
   3.2      PURCHASE ENTIRELY FOR OWN ACCOUNT....................................................................12
   3.3      INVESTMENT EXPERIENCE................................................................................12
   3.4      RESTRICTED SECURITIES................................................................................13
   3.5      LEGENDS..............................................................................................13
   3.6      RESIDENCY............................................................................................14
   3.7      ACCESS TO INFORMATION................................................................................14
</TABLE>

<PAGE>

<TABLE>

<S>                                                                                                             <C>
4.    CONDITIONS OF INVESTOR'S OBLIGATIONS AT THE CLOSING........................................................14
   4.1      REPRESENTATIONS AND WARRANTIES.......................................................................15
   4.2      PERFORMANCE..........................................................................................15
   4.3      COMPLIANCE CERTIFICATE...............................................................................15
   4.4      QUALIFICATIONS.......................................................................................15
   4.5      PROCEEDINGS AND DOCUMENTS............................................................................15
   4.6      INVESTOR RIGHTS AGREEMENT............................................................................15
   4.7      OPINION OF COMPANY COUNSEL...........................................................................16

5.    CONDITIONS OF THE COMPANY'S OBLIGATIONS AT THE CLOSING.....................................................18
   5.1      REPRESENTATIONS AND WARRANTIES.......................................................................18
   5.2      PAYMENT OF PURCHASE PRICE............................................................................18
   5.3      SECURITIES LAWS QUALIFICATION........................................................................18
   5.4      PERFORMANCE..........................................................................................18

6.    MISCELLANEOUS..............................................................................................18
   6.1      PRESS RELEASES.......................................................................................18
   6.2      USE OF PROCEEDS......................................................................................19
   6.3      SURVIVAL OF WARRANTIES...............................................................................19
   6.4      SUCCESSORS AND ASSIGNS...............................................................................19
   6.5      GOVERNING LAW........................................................................................19
   6.6      COUNTERPARTS.........................................................................................19
   6.7      TITLES AND SUBTITLES.................................................................................19
   6.8      NOTICES..............................................................................................19
   6.9      DUE DILIGENCE EXPENSES; ATTORNEYS'AND ACCOUNTANTS'FEES...............................................20
   6.10     FINDER'S FEES........................................................................................20
   6.11     AMENDMENTS AND WAIVERS...............................................................................20
   6.12     SEVERABILITY.........................................................................................21
   6.13     ENTIRE AGREEMENT.....................................................................................21
</TABLE>

         EXHIBIT A - CERTIFICATE OF DESIGNATION
         EXHIBIT B - SCHEDULE OF EXCEPTIONS
         EXHIBIT C - ARTICLES OF INCORPORATION
         EXHIBIT D - BYLAWS
         EXHIBIT E - SECOND AMENDMENT TO INVESTOR RIGHTS AGREEMENT

         SCHEDULE I

<PAGE>

                                   SCHEDULE I

                              Schedule of Investors

<TABLE>
<CAPTION>

--------------------------------------------------------- ------------------------- ----------------------------------
                    NAME AND ADDRESS                          NUMBER OF SHARES               PURCHASE PRICE
--------------------------------------------------------- ------------------------- ----------------------------------
<S>                                                            <C>                           <C>
 Capital Research and Management Company, on behalf of           1,018,172                     $20,000,000
            the New Economy Fund, 34th Floor
                    333 So. Hope St.
                 Los Angeles, CA 90071
              Attention: Michael J. Downer
                   Ph: (213) 486-9425
                  Fax: (213) 486-9041
--------------------------------------------------------- ------------------------- ----------------------------------
        InfoSpace Venture Capital Fund 2000, LLC                  254,543                      $5,000,000
                  15375 NE 90th Street
                   Redmond, WA 98052
--------------------------------------------------------- ------------------------- ----------------------------------
                       Lakeside I                                 279,997                      $5,500,000
          c/o Lakeside Capital Management, LLC
                   1938 43rd Ave East
                   Seattle, WA 98112

                  206-324-2600 (voice)
                   206-726-0663 (fax)
--------------------------------------------------------- ------------------------- ----------------------------------
                Washington Mutual, Inc.                           203,634                      $4,000,000
             1201 Third Avenue, Suite 1500
                        WA 98101
            Attn: Craig E. Tall, Vice Chair
--------------------------------------------------------- ------------------------- ----------------------------------
                 Internet Ventures LLC                            152,726                      $3,000,000
--------------------------------------------------------- ------------------------- ----------------------------------
                  Dolce Freei, L.L.C.                             101,818                      $2,000,000
             c/o Williams, Kastner & Gibbs
                    Two Union Square
              601 Union Street, Suite 4100
             Seattle, Washington 98101-2380
--------------------------------------------------------- ------------------------- ----------------------------------
                      Robert Pack                                  76,363                      $1,500,000
                c/o Freei Networks, Inc.
                909 S. 336th Street #110
             Federal Way, Washington 98003
--------------------------------------------------------- ------------------------- ----------------------------------
                  Kellett Partners LP                              66,945                      $1,315,000
                Kellett Investment Corp.
                  200 Galleria Parkway
                       Suite 1800
                   Atlanta, Ga 30339
--------------------------------------------------------- ------------------------- ----------------------------------
                Remo International Inc.                            50,909                      $1,000,000
                     P.O. Box 3151
                       Road Town
            Tortola, British Virgin Islands
--------------------------------------------------------- ------------------------- ----------------------------------
</TABLE>

<PAGE>

<TABLE>

--------------------------------------------------------- ------------------------- ----------------------------------
<S>                                                              <C>                         <C>
               scmp.com Holdings Limited                           50,909                      $1,000,000
                     P.O. Box 3151
                       Road Town
            Tortola, British Virgin Islands
--------------------------------------------------------- ------------------------- ----------------------------------
                       Carl Stork                                  25,454                       $500,000
                    4451 91st Ave NE
                 Yarrow Point WA 98004
--------------------------------------------------------- ------------------------- ----------------------------------
                    PPC Partners LLC                               25,454                       $500,000
                    One Union Square
                  600 Union, Ste. 2901
               Seattle, Washington 98101
--------------------------------------------------------- ------------------------- ----------------------------------
                Clear Fir Partners, L.P.                           7,636                        $150,000
                Kellett Investment Corp.
            200 Galleria Parkway, Suite 1800
                   Atlanta, GA 30339
--------------------------------------------------------- ------------------------- ----------------------------------
                     Gary V. Sledge                                1,273                         $25,000
                Kellett Investment Corp.
                  200 Galleria Parkway
                       Suite 1800
                   Atlanta, GA 30339
--------------------------------------------------------- ------------------------- ----------------------------------
                     Cascade Group                                  509                          $10,000
                Kellett Investment Corp.
                  200 Galleria Parkway
                       Suite 1800
                   Atlanta, GA 30339
--------------------------------------------------------- ------------------------- ----------------------------------
                Cedar Grove Investments                                                         $200,000
                  2415 Carillon Point
                   Kirkland, WA 98033
                  (425) 828-8111 phone
                   (425) 828-8101 fax
--------------------------------------------------------- ------------------------- ----------------------------------
                      Bill Hoglund                                                              $100,000
                    C/o Eagle River
                  2300 Carillon Point
               Kirkland, Washington 98033
                  (425) 828-8000 (ph)
--------------------------------------------------------- ------------------------- ----------------------------------
                     Brian Marcinek                                                              $50,000
                    C/o Eagle River
                  2300 Carillon Point
               Kirkland, Washington 98033
                  (425) 828-8000 (ph)
--------------------------------------------------------- ------------------------- ----------------------------------
          Spanish Caravan Investments, L.L.C.                                                   $250,000
                1616 Federal Avenue East
               Seattle, Washington 98102
                    Attn: Jim Judson
                  (425) 828 8499 (ph)
                  (425) 828 8061 (fax)
--------------------------------------------------------- ------------------------- ----------------------------------
</TABLE>

<PAGE>

<TABLE>

--------------------------------------------------------- ------------------------- ----------------------------------
<S>                                                        <C>                                <C>
                    Dennis Weibling                                                             $200,000
                    C/o Eagle River
                  2300 Carillon Point
               Kirkland, Washington 98033
                  (425) 828-8000 (ph)
--------------------------------------------------------- ------------------------- ----------------------------------
                      Art Harrigan                                                              $150,000
              999 Third Avenue, Suite 4400
               Seattle, Washington 98104
                  (206) 623-1700 (ph)
                  (206) 623-8717 (fax)
--------------------------------------------------------- ------------------------- ----------------------------------
                    Keith Grinstein                                                             $100,000
               Nextel International, Inc.
               1191 Second Avenue, #1600
               Seattle, Washington 98101
                  (206) 749-8350 (ph)
                  (206) 749-8384 (fax)
--------------------------------------------------------- ------------------------- ----------------------------------
                      Steve Hooper                                                              $200,000
                 4001 Hunts Point Road
                   Bellevue, WA 98004
--------------------------------------------------------- ------------------------- ----------------------------------
                      787, L.L.C.                                                               $250,000
                  9919 S.E 5th Street
               Bellevue, Washington 98004
                  (206) 601-8901 (ph)
                  (425) 454-2548 (fax)
                   Attn: Jim Voelker
--------------------------------------------------------- ------------------------- ----------------------------------
                        Pat Broe                                                               $1,000,000
             252 Clayton Street, 4th Floor
                    Denver, CO 80206
--------------------------------------------------------- ------------------------- ----------------------------------
                     James E. Sierk                                                              $50,000
               850 So. Boulder Hwy, S-189
                  Henderson, NV 89105
--------------------------------------------------------- ------------------------- ----------------------------------
                   Alicia Ruth Evans                                                             $25,000
                     Drugstore.com
           13920 S.E. Eastgate Way, Suite 300
                   Bellevue, WA 98005
--------------------------------------------------------- ------------------------- ----------------------------------
                    Stuart M. Sloan                                                             $200,000
                Sloan Capital Companies
             1301 Fifth Avenue, Suite 3000
                   Seattle, WA 98101
                  (206) 340-1818 (ph)
                  (206) 340-9055 (fax)
--------------------------------------------------------- ------------------------- ----------------------------------
                    Gaylord Kellogg                                                              $50,000
                  270 Lake Dell Avenue
               Seattle, Washington 98122
                  (206) 726-9480 (ph)
                  (206) 860-3866 (fax)
--------------------------------------------------------- ------------------------- ----------------------------------
</TABLE>

<PAGE>

<TABLE>

--------------------------------------------------------- ------------------------- ----------------------------------
<S>                                                           <C>                              <C>
                      Bob Ratliffe                                                               $25,000
                    C/o Eagle River
                  2300 Carillon Point
               Kirkland, Washington 98033
                  (425) 828-8000 (ph)
--------------------------------------------------------- ------------------------- ----------------------------------
               Sugar Mountain Capital LLC                                                       $300,000
                  2415 Carillon Point
               Kirkland, Washington 98033
                   Attn: Kurt Dammeir
                  (425) 828-8108 (ph)
                  (425) 828-8101 (fax)
--------------------------------------------------------- ------------------------- ----------------------------------
                       Lenard Lee                                                                $25,000
                       Vista.com
                     116 N.W. 41st
                  Seattle, Washington
--------------------------------------------------------- ------------------------- ----------------------------------
                       Jeff Stock                                                                $25,000
               c/o Omni Properties, Inc.
             36201 Enchanted Parkway South
               Federal Way, WA 98003-7197
                  (253) 661-8030 (ph)
                  (253) 661-8099 (fax)
--------------------------------------------------------- ------------------------- ----------------------------------
                  Peter von Reichbauer                                                           $25,000
                 King County Courthouse
                       Room 1200
                     516 3rd Avenue
                 Seattle, WA 98104-3272
                  (206) 296-1007 (ph)
                  (206) 296-0323 (fax)
--------------------------------------------------------- ------------------------- ----------------------------------
                     Peter Holland                                                               $50,000
             10645 N.E. 38th Place, Suite A
                   Kirkland, WA 98033
                  (425) 576-4500 (ph)
                  (425) 576-4600 (fax)
--------------------------------------------------------- ------------------------- ----------------------------------
                    Brad Silverberg                                                            $1,000,000
                      P.O. Box 866
                   Bellevue, WA 98009
--------------------------------------------------------- ------------------------- ----------------------------------
                    Cameron Mhyrvold                                                            $600,000
--------------------------------------------------------- ------------------------- ----------------------------------
                      Jon Anderson                                                              $500,000
--------------------------------------------------------- ------------------------- ----------------------------------
                       Rich Tong                                                                $500,000
--------------------------------------------------------- ------------------------- ----------------------------------
                      Jon Roberts                                                               $250,000
                   641 33rd Avenue E.
               Seattle, Washington 98112
--------------------------------------------------------- ------------------------- ----------------------------------
                 G. Christopher Peters                                                          $250,000
--------------------------------------------------------- ------------------------- ----------------------------------
</TABLE>

<PAGE>

<TABLE>
--------------------------------------------------------- ------------------------- ----------------------------------
<S>                                                       <C>                                 <C>
               3444 Evergreen Point Road
                Medina, Washington 98033
--------------------------------------------------------- ------------------------- ----------------------------------
                     Glentel, Inc.                                                             $1,000,000
             Suite 2800 4710 Kingsway Ave.
           Burnaby, British Columbia V5H 4M2
                         Canada
--------------------------------------------------------- ------------------------- ----------------------------------
                   Thomas E. Skidmore                                                            $20,000
             Suite 2800 4710 Kingsway Ave.
           Burnaby, British Columbia V5H 4M2
                         Canada
--------------------------------------------------------- ------------------------- ----------------------------------
                   A. Allan Skidmore                                                             $20,000
             Suite 2800 4710 Kingsway Ave.
           Burnaby, British Columbia V5H 4M2
                         Canada
--------------------------------------------------------- ------------------------- ----------------------------------
                   Ronald E. Sowerby                                                             $20,000
             Suite 2800 4710 Kingsway Ave.
           Burnaby, British Columbia V5H 4M2
                         Canada
--------------------------------------------------------- ------------------------- ----------------------------------
                   Allan L. Rosenhek                                                             $10,000
                  8501 Commerce Court
           Burnaby, British Columbia V5A 4N3
                         Canada
--------------------------------------------------------- ------------------------- ----------------------------------
                     Richard Miller                                                              $10,000
             Suite 2800 4710 Kingsway Ave.
           Burnaby, British Columbia V5H 4M2
                         Canada
--------------------------------------------------------- ------------------------- ----------------------------------
                     Siltanen/Keehn                                                              $75,000
                 3110 Main Street #210
                 Santa Monica, CA 90405
                  (310) 450-6622 (ph)
--------------------------------------------------------- ------------------------- ----------------------------------
</TABLE><PAGE>

                                                                  Exhibit 10.11
                                     [Logo]

          INTERNET CONTENT (WORLD WIDE WEB SITE) DISTRIBUTION AGREEMENT

THIS AGREEMENT, dated as of November 24, 1999 (the "Effective Date"), is made by
and between InfoSpace.com, Inc., a Delaware corporation, ("InfoSpace"), with
offices at 15375 NE 90th Street, Redmond, WA 98052, and Freei Networks Inc., a
Washington corporation ("Company"), with offices at 909 South 336th St. Suite
110, Federal Way, WA 98003.

                                    RECITALS

This Agreement is entered into with reference to the following facts:

A. InfoSpace maintains on certain locations of its Web Sites (as defined below)
and makes available to Internet users certain content, resources, archives,
indices, software, catalogs and collections of information (collectively, such
materials are identified in Exhibit A and referred to herein as the "Content").

B. InfoSpace wishes to grant certain rights and licenses to Company with respect
to access to the Content and certain other matters, and Company wishes to grant
certain rights and licenses to InfoSpace with respect to the Company Web Sites
(as defined below) and certain other matters, as set forth in this Agreement.

                                    AGREEMENT

The parties agree as follows:

         SECTION 1.   DEFINITIONS.

         As used herein, the following terms have the following defined
meanings:

"BANNER ADVERTISEMENT" means a rotating banner advertisement of up to
approximately 468 x 60 pixels located at the top and/or bottom of a Web Page, or
other advertisements, sponsorships or other promotions on or related to a
Personal Desktop Portal Page, as may be designated by InfoSpace and Company.

"CO-BRANDED PAGES" means, collectively, Query Pages, Results Pages and Personal
Desktop Portal Pages.

"COMPANY MARKS" means those Trademarks of Company set forth on Exhibit B hereto
and such other Trademarks (if any) of Company which Company may own or use from
time to time.

"COMPANY WEB SITES" means, collectively, all Web Sites maintained by or on
behalf of Company and its affiliates.

"GRAPHICAL USER INTERFACE" means a graphical user interface, to be designed by
Company and InfoSpace and implemented by InfoSpace pursuant to the terms of this
Agreement, that contains or implements branding, graphics, navigation, content
or other characteristics or features such that a user reasonably would conclude
that such interface is part of the Company Web Sites.

"IMPRESSION" means a user's viewing of any discrete screen of a Co-branded Page
containing any Banner Advertisement.

[*] = Confidential Treatment Requested

                                      -1-

<PAGE>

"INFOSPACE MARKS" means those Trademarks of InfoSpace set forth on Exhibit B
hereto and such other Trademarks (if any) as InfoSpace may from time to time
notify Company in writing to be "InfoSpace Marks" within the meaning of this
Agreement.

"INFOSPACE WEB SITES" means, collectively: (a) the Web Site the primary home
page of which is located at http://www.infospace.com; and (b) other Web Sites
maintained by InfoSpace and its affiliates.

"INTELLECTUAL PROPERTY RIGHTS" means any patent, copyright, rights in
Trademarks, trade secret rights, moral rights and other intellectual property or
proprietary rights arising under the laws of any jurisdiction.

"PERSON" means any natural person, corporation, partnership, limited liability
company or other entity.

"PERSONAL DESKTOP PORTAL APPLICATION" means a version (as designated by
InfoSpace) of a downloadable software application currently known as "The
InfoSpace Personal Desktop Portal" whereby end users are able to access and
display certain content, and any successors and/or revisions to such application
as InfoSpace may designate in its sole discretion.

"PERSONAL DESKTOP PORTAL PAGE" means any page hosted on the InfoSpace Web Sites,
and served to an end user who accessed such page through a version of the
Personal Desktop Portal Application that such end user downloaded from a Query
Page or Results Page, which may incorporate a Graphical User Interface and/or on
which users may input queries and searches relating to the Content.

"QUERY PAGE" means any page hosted on the InfoSpace Web Sites which may
incorporate the Graphical User Interface and/or on which users clicking directly
from the Company Web Sites may input queries and searches relating to the
Content or may include download of or access to Content.

"RESULTS PAGE" means any page hosted on the InfoSpace Web Sites which may
incorporate the Graphical User Interface and/or displays Content in response to
queries and searches made on a Query Page or Personal Desktop Portal Page.

"TRADEMARKS" means any trademarks, service marks, trade dress, trade names,
corporate names, proprietary logos or indicia and other source or business
identifiers.

"WEB SITE" means any point of presence maintained on the Internet or on any
other public data network. With respect to any Website maintained on the World
Wide Web, such Website includes all HTML pages (or similar unit of information
presented in any relevant data protocol) that either (a) are identified by the
same second-level domain (such as infospace.com) or by the same equivalent level
identifier in any relevant address scheme, or (b) contain branding, graphics,
navigation or other characteristics such that a user reasonably would conclude
that the pages are part of an integrated information or service offering.

         2. CERTAIN RIGHTS GRANTED.

         2.1 INFOSPACE GRANT. Subject to the terms and conditions of this
Agreement, InfoSpace hereby grants to Company the following rights:

                  (a) the right to include on the Company Web Sites hypertext
links (whether in graphical, text or other format) which enable "point and
click" access to locations of the InfoSpace Web Sites specified by InfoSpace
(and subject to change by InfoSpace from time to time); and

                  (b) the right to permit users to link to Results Pages via
Query Pages and/or to Personal Desktop Portal Pages hosted on the InfoSpace Web
Sites.

         2.2 COMPANY GRANT. Subject to the terms and conditions of this
Agreement, Company hereby grants InfoSpace the following rights:

                                      -2-
<PAGE>

                  (a) the right to include on the InfoSpace Web Sites hypertext
links (whether in graphical, text or other format) which enable "point and
click" access to locations of the Company Web Sites specified by Company (and
subject to change by Company from time to time);

                  (b) the right to sell and serve Banner Advertisements and
other promotions on the Co-branded Pages; and

                  (c) the right to track the number of Impressions.

         2.3 LIMITATIONS. Company and its affiliates shall have no right to
reproduce or sub-license, re-sell or otherwise distribute all or any portion of
the Content to any Person including via the Internet (including the World Wide
Web) or any successor public or private data network. This Agreement and
delivery of the Content or any portion hereunder to Company shall not cause
InfoSpace to be in violation of any law of any jurisdiction or third party
agreement, and InfoSpace may at any time modify its grant of rights to the
extent necessary to ensure compliance. InfoSpace may from time to time issue
additional guidelines with respect to use or display of any of-the Content, to
which Company will adhere. Company shall implement and/or cooperate with
InfoSpace in its implementation of bug fixes, updates, and minimum build
requirements for any Content supplied by InfoSpace, promptly upon the request of
InfoSpace. Neither party shall have any right to: (a) edit or modify any Banner
Advertisements submitted for a Cobranded Page (but without limiting InfoSpace's
right to reject any Banner Advertisements pursuant to this Agreement); or (b)
remove, obscure or alter any notices of Intellectual Property Rights appearing
in or on any materials (including Banner Advertisements) provided by the other
party.

         2.4 COMPANY MARKS LICENSE. Subject to Section 2.6, Company hereby
grants InfoSpace the right to use, reproduce, publish, perform and display the
Company Marks: (a) on the InfoSpace Web Sites in connection with the posting of
hyperlinks to the Company Web Sites; (b) in and in connection with the
development use, reproduction, modification, adaptation, publication, display
and performance of the Graphical User Interface, Results Pages and (if
applicable) the Personal Desktop Portal Pages; and (c) in promotional and
marketing materials, content directories and indexes, and electronic and printed
advertising, publicity, press releases, newsletters and mailings about
InfoSpace.

         2.5 INFOSPACE MARKS LICENSE. Subject to Section 2.6, InfoSpace hereby
grants the right to use, reproduce, publish, perform and display the InfoSpace
Marks: (a) on the Company Web Sites in connection with the posting of hyperlinks
to the InfoSpace Web Sites; (b) in and in connection with the development, use,
reproduction in promotional and marketing materials, content directories and
indexes, and electronic and printed advertising, publicity, press releases,
newsletters and mailings about Company.

         2.6 APPROVAL OF TRADEMARK USAGE. InfoSpace shall not use or exploit in
any manner any of the Company Marks, and Company shall not use or exploit in any
manner any of the InfoSpace Marks, except in such manner and media as the other
party may consent to in writing, which consent shall not be unreasonably
withheld or delayed. Either party may revoke or modify any such consent upon
written notice to the other party.

         2.7 NONEXCLUSIVITY. Each party acknowledges and agrees that the rights
granted to the other party in this Agreement are non-exclusive, and that,
without limiting the generality of the foregoing, nothing in this Agreement
shall be deemed or construed to prohibit either party from participating in
similar business arrangements as those described herein including soliciting
third party advertisements or other materials, serving advertisements or other
materials to third parties' Web Sites, or hosting or permitting third parties to
place advertisements on such party's Web Site, whether or not, in each such
case, such advertisements are competitive with the products, services or
advertisements of the other party.

         3. CERTAIN OBLIGATIONS OF THE PARTIES.

         3.1 GRAPHICAL USER INTERFACE AND CO-BRANDED PAGES. To the extent
provided in this Agreement, Company and InfoSpace will cooperate to design the
user-perceptible elements of the Graphical User Interface, with the goals of:
(a) conforming the display output of the "look and feel"

                                      -3-

<PAGE>

associated with the applicable Company Web Sites; and (b) maximizing the
commercial effectiveness thereof. Following agreement by the parties upon the
design specifications thereof, InfoSpace will use commercially reasonable
efforts to develop the Graphical User Interface and to implement the same on
Co-branded Pages. InfoSpace shall have no liability or obligation for failure to
develop or implement the Graphical User Interface or any Co-branded Pages as
contemplated by this Section 3. 1, or for any nonconformity with the design
specifications agreed upon by the parties, provided InfoSpace has used
commercially reasonable efforts to develop and implement the same as provided in
this Section 3.1. The URL for the Co-Branded Pages shall not include Company's
domain name.

         3.2 COMPANY OBLIGATIONS. Unless otherwise designated by InfoSpace, the
InfoSpace logo and at least one other link pointing to pages of the InfoSpace
Web Sites specified by InfoSpace (and subject to change by InfoSpace from time
to time) will be present on all Co-branded Pages. Each link contemplated by this
Section 3.2 shall be: (a) prominent in relation to links to other Web Sites on
the applicable page (and in any event at least as prominent as any link to any
third party Web Site); and (b) above-the-fold (i.e., immediately visible to any
user accessing the applicable page without the necessity of scrolling downward
or horizontally).

         3.3 ACCESSIBILITY OF WEB SITES. Each party will use commercially
reasonable efforts to maintain accessibility of its Web Sites.

         3.4 IMPRESSION AND OTHER INFORMATION. InfoSpace shall track and
allow the Company on a monthly basis to remotely access in electronic form
information maintained by InfoSpace concerning as applicable 1)Number of
Impressions. 2) each click-through to Infospace applications 3) data
regarding Banner Inventory on co-branded pages; 4) gross revenues received by
Infospace from banner sales.

         3.5 PUBLICITY. The parties may work together to issue publicity and
general marketing communications concerning their relationship and other
mutually agreed-upon matters, provided, however, that neither party shall have
any obligation to do so. In addition, neither party shall issue such publicity
and general marketing communications concerning their relationship without the
prior written consent of the other party (not to be unreasonably withheld).
Neither party shall disclose the terms of this Agreement to any third party
other than its outside counsel, auditors, and financial advisors, except as
required by law.

         4. ADVERTISING AND REVENUE.

         4.1 PLACEMENT OF BANNER ADVERTISEMENTS. In addition to the terms and
conditions otherwise set forth in this Agreement, Banner Advertisements sold on
the Co-branded Pages shall be governed by the terms and conditions set forth on
Exhibit C.

         4.2 REMUNERATION; COLLECTION. The Company or Infospace will pay the
amounts as set forth on Exhibit C. Any amount not paid when due, or as
invoiced, will be subject to a finance charge equal to one and one-half
percent (1.5%) per month or the highest rate allowable by law, whichever is
less, determined and compounded daily from the date due until the date paid.
Payment of such finance charges will not excuse or cure any breach or default
for late payment. InfoSpace or Company may accept any check or payment
without prejudice to its rights to recover the balance due or to pursue any
other right or remedy. No endorsement or statement on any check or payment or
letter accompanying any check or payment or elsewhere will be construed as an
accord or satisfaction. Unless explicitly stated on Exhibit C, all amounts
payable under this Agreement are denominated in United States dollars and
Company will pay all amounts payable under this Agreement in lawful money of
the United States. Unless explicitly stated on Exhibit C, InfoSpace shall
have no obligation to share with, allow Company to sell, or account to
Company regarding, any sums received by InfoSpace or any of its affiliates
from any advertisements or promotions on any of the InfoSpace Web Sites. In
the event Company or Infospace fails to make timely payment, InfoSpace or
Company shall have the right, in addition to all other rights under this
Agreement, to immediately terminate all links, content, or services provided
to the other party under this Agreement. If Company or Infospace fails to
make timely payment, the defaulting party will be responsible for all
reasonable expenses (including attorney fees) incurred by the other party in
collecting such amounts.

                                      -4-

<PAGE>

         5. Warranties, Indemnification and Limitation of Direct Liability.

         5.1 Warranties

         The parties to this Agreement represent and warrant as follows:

         a)       Each party warrants that it has the full corporate right,
                  power and authority to enter into this Agreement and to
                  perform the acts required of it hereunder;

         b)       Each party warrants that its execution of this Agreement by
                  such party and performance of its obligations hereunder, do
                  not and will not violate any agreement to which it is a party
                  or by which it is bound; and in performance under and related
                  to this Agreement, the parties shall comply with all
                  applicable laws, rules and regulations (including, without
                  limitation, privacy, export control and obscenity laws); and

         c)       Each party warrants that when executed and delivered, this
                  Agreement will constitute the legal, valid and binding
                  obligation of such party, enforceable against it in accordance
                  with its terms.

         d)       Each party warrants that its Web Sites and the content
                  contained therein, and all Banner Advertisements served or
                  submitted to the Co-branded Pages, as the case may be, will
                  not contain any material that is obscene, pornographic,
                  profane, fraudulent, libelous or defamatory, or infringing of
                  any third party Intellectual Property Rights.

         5.2 INDEMNIFICATION. Each party (the "Indemnifying Party") will defend,
indemnify and hold harmless the other party (the "Indemnified Party"), and the
respective directors, officers, employees and agent of the Indemnified Party,
from and against any and all claims, costs, losses, damages, judgments and
expenses (including reasonable attorneys' fees) arising out of or in connection
with any third-party claim alleging any breach of such party's representations
or warranties or covenants set forth in this Agreement. The Indemnified Party
agrees that the Indemnifying Party shall have sole and exclusive control over
the defense and settlement of any such third party claim. The Indemnified Party
shall promptly notify the Indemnifying Party of any such claim of which it
becomes aware and shall: (a) at the Indemnifying Party's expense, provide
reasonable cooperation to the Indemnifying Party in connection with the defense
or settlement of any such claim; and (b) at the Indemnified Party's expense, be
entitled to participate in the defense of any such claim. The Indemnifying Party
shall not acquiesce to any judgment or enter into any settlement that adversely
affects the Indemnified Party's rights or interests without prior written
consent of the Indemnified Party.

         5.3      LIMITATION OF LIABILITY; DISCLAIMER.

         (a) Liability. UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE TO
THE OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY
DAMAGES (EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES), ARISING FROM ANY PROVISION OF THIS AGREEMENT, SUCH AS, BUT NOT LIMITED
TO, LOSS OF REVENUE OR ANTICIPATED PROFITS OR LOST BUSINESS. INFOSPACE'S
LIABILITY (WHETHER ARISING IN TORT, CONTRACT OR OTHERWISE AND NOTWITHSTANDING
ANY FAULT, NEGLIGENCE (WHETHER ACTIVE, PASSIVE OR IMPUTED), PRODUCT LIABILITY OR
STRICT LIABILITY OF INFOSPACE) UNDER THIS AGREEMENT OR WITH REGARD TO ANY OF THE
PRODUCTS OR SERVICES RENDERED BY THE PARTIES UNDER THIS AGREEMENT (INCLUDING ANY
SERVERS OR OTHER HARDWARE, SOFTWARE AND ANY OTHER ITEMS USED OR PROVIDED BY THE
PARTIES OR ANY THIRD PARTIES IN CONNECTION WITH HOSTING THE CO-BRANDED PAGES OR
PROVIDING CONTENT), THE PARTIES' WEB SITES AND ANY OTHER ITEMS OR SERVICES
FURNISHED UNDER THIS AGREEMENT. IN NO EVENT WILL EITHER PARTYS' AGGREGATE
LIABILITY TO THE OTHER PARTY UNDER THIS AGREEMENT EXCEED THE COMPENSATION PAID
THE OTHER PARTY UNDER THIS AGREEMENT.

                                      -5-
<PAGE>

         (b) No Additional Warranties. EXCEPT AS SET FORTH IN THIS AGREEMENT,
NEITHER PARTY MAKES, AND EACH PARTY HEREBY SPECIFICALLY DISCLAIMS, ANY
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED (INCLUDING ANY IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND IMPLIED
WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE.), AND EACH
PARTY HEREBY SPECIFICALLY DISCLAIMS ANY CLAIM IN TORT (INCLUDING NEGLIGENCE), IN
EACH CASE, REGARDING THEIR WEB SITES, ANY PRODUCTS OR SERVICES DESCRIBED
THEREON, ANY BANNER ADVERTISEMENTS, ANY SOFTWARE, OR ANY OTHER ITEMS OR SERVICES
PROVIDED UNDER THIS AGREEMENT. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING,
BOTH PARTIES ACKNOWLEDGE THAT THE PARTIES' WEB SITES AND THE CONTENT (INCLUDING
ANY SERVERS OR OTHER HARDWARE, SOFTWARE AND ANY OTHER ITEMS USED OR PROVIDED BY
THE PARTIES OR ANY THIRD PARTIES IN CONNECTION WITH HOSTING THE WEB SITES OR THE
CONTENT OR PERFORMANCE OF ANY SERVICES HEREUNDER) ARE PROVIDED "AS IS" WITHOUT
ANY WARRANTIES OF ANY KIND. THE PARTIES MAKE NO WARRANTY THAT THEY WILL CONTINUE
TO OPERATE THEIR WEB SITES OR OFFER THE CONTENT IN THEIR CURRENT FORM, THAT
THEIR WEB SITES OR THE CONTENT WILL BE ACCESSIBLE WITHOUT INTERRUPTION, THAT THE
SITES OR THE CONTENT WILL MEET THE REQUIREMENTS OR EXPECTATIONS OF THE OTHER
PARTY, OR THAT THE CONTENT, SOFTWARE OR ANY OTHER ANY MATERIALS ON ITS WEB SITES
OR THE SERVERS AND SOFTWARE THAT MAKES ITS WEB SITES AVAILABLE ARE FREE FROM
ERRORS, DEFECTS, DESIGN FLAWS OR OMISSIONS.

         6.       TERM AND TERMINATION.

         THE TERM OF THIS AGREEMENT IS AS SET FORTH ON EXHIBIT C.

         6.2 TERMINATION. Either party may terminate the Term upon not less than
             thirty (30) days' prior written notice to the other party of any
             material breach hereof by such other party, provided that such
             other party has not cured such material breach within such thirty
             (30) day period.

         6.3 Either Party may terminate this agreement, without cause, by
             providing a thirty (30) day prior written notice to the other
             party.

         6.4 EFFECT OF TERMINATION. Upon termination or expiration of the Term
for any reason, all rights and obligations of the parties under this Agreement
shall be extinguished, except that: (a) all accrued payment obligations
hereunder shall survive such termination or expiration; and (b) the rights and
obligations of the parties under Sections 4.2, 4.3, 5, 6, 7 and 8 shall survive
such termination or expiration.

         7. INTELLECTUAL PROPERTY.

         7.1 COMPANY. AS BETWEEN THE PARTIES, Company retains all right, title
and interest in and to the Company Web Sites (including, without limitation, any
and all content, data, URLs, domain names, technology, software, code, user
interfaces, "look and feel", Trademarks and other items posted thereon or used
in connection or associated therewith; but excluding any Content or other items
supplied by InfoSpace) and the Company Marks along with all Intellectual
Property Rights associated with any of the foregoing. All goodwill arising out
of InfoSpace's use of any of the Company Marks shall inure solely to the benefit
of Company.

         7.2 INFOSPACE. As between the parties, InfoSpace retains all right,
title and interest in and to the Content and the InfoSpace Web Sites (including,
without limitation, any and all content, data, URLs, domain names, technology,
software (including, without limitation, the Personal Desktop Portal
Application), code, user interfaces, "look and feel", Trademarks and other items
posted thereon or used in connection or associated therewith; but excluding any
items supplied by Company), user data gathered

                                      -6-

<PAGE>

from or through any InfoSpace tools or applications, and the InfoSpace Marks,
along with all Intellectual Property Rights associated with any of the
foregoing. All goodwill arising out of Company's use of any of the InfoSpace
Marks shall inure solely to the benefit of InfoSpace.

         7.3 COPYRIGHT NOTICES. All Co-branded Pages will include the following
acknowledgment, along with the InfoSpace logo.

         "Powered by InfoSpace" or "Powered by InfoSpace.com"

InfoSpace and Company acknowledge that the Co-branded Pages may also contain
copyright and patent notices of copyrighted or copyrightable works, including
those of InfoSpace Content providers. InfoSpace will be given credit in
advertisements of Company which promote the Content services provided by
InfoSpace in a manner such as "brought to you by InfoSpace.com" or similar text.

         7.4 OTHER TRADEMARKS. InfoSpace shall not register or attempt to
register any of the Company Marks or any Trademarks which Company reasonably
deems to be confusingly similar to any of the Company Marks. Company shall not
register or attempt to register any of the InfoSpace Marks or any Trademarks
which InfoSpace reasonably deems to be confusingly similar to any of the
InfoSpace Marks.

         7.5 FURTHER ASSURANCES. Each party shall take, at the other party's
expense, such action (including, without limitation, execution of affidavits or
other documents) as the other party may reasonably request to effect, perfect or
confirm such other party's ownership interests and other rights as set forth
above in this Section 7.

         8. GENERAL PROVISIONS.

         8.1 CONFIDENTIALITY. Each party (the "Receiving Party") undertakes to
retain in confidence the terms of this Agreement and all other non-public
information and know-how of the other party disclosed or acquired by the
Receiving Party pursuant to or in connection with this Agreement which is either
designated as proprietary and/or confidential or by the nature of the
circumstances surrounding disclosure, ought in good faith to be treated as
proprietary and/or confidential ("Confidential Information"); provided that each
party may disclose the terms and conditions of this Agreement to its immediate
legal and financial consultants in the ordinary course of its business. Each
party agrees to use commercially reasonable efforts to protect Confidential
Information of the other party, and in any event, to take precautions at least
as great as those taken to protect its own confidential information of a similar
nature. Company acknowledges that the terms of this Agreement and user
information are Confidential Information of InfoSpace. The foregoing
restrictions shall not apply to any information that: (a) was known by the
Receiving Party prior to disclosure thereof by the other party; (b) was in or
entered the public domain through no fault of the Receiving Party; (c) is
disclosed to the Receiving Party by a third party legally entitled to make such
disclosure without violation of any obligation of confidentiality; (d) is
required to be disclosed by applicable laws or regulations (but in such event,
only to the extent required to be disclosed); or (e) is independently developed
by the Receiving Party without reference to any Confidential Information of the
other party. Upon request of the other party, or in any event upon any
termination or expiration of the Term, each party shall return to the other all
materials, in any medium, which contain, embody, reflect or reference all or any
part of any Confidential Information of the other party. Each party acknowledges
that breach of this provision by it would result in irreparable harm to the
other party, for which money damages would be an insufficient remedy, and
therefore that the other party shall be entitled to seek injunctive relief to
enforce the provisions of this Section 8.1.

         8.2 INDEPENDENT CONTRACTORS. Company and InfoSpace are independent
contractors under this Agreement, and nothing herein shall be construed to
create a partnership, joint venture, franchise or agency relationship between
Company and InfoSpace. Neither party has any authority to enter into agreements
of any kind on behalf of the other party.

         8.3 ASSIGNMENT. Company may not assign this Agreement or any of its
rights or delegate any of its duties under this Agreement without the prior
written consent of InfoSpace; except that either

                                      -7-
<PAGE>

party may, without the other party's consent, assign this Agreement or any of
its rights or delegate any of its duties under this Agreement: (a) to any
affiliate of such party; or (b) to any purchaser of all or substantially all of
such party's assets or to any successor by way of merger, consolidation or
similar transaction. Subject to the foregoing, this Agreement will be binding
upon, enforceable by, and inure to the benefit of the parties and their
respective successors and assigns.

         8.4 CHOICE OF LAW; FORUM SELECTION. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of Washington
without reference to its choice of law rules. Company hereby irrevocably
consents to exclusive personal jurisdiction and venue in the state and federal
courts located, in King County, Washington with respect to any actions, claims
or proceedings arising out of or in connection with this Agreement, and agrees
not to commence or prosecute any such action, claim or proceeding other than in
the aforementioned courts.

         8.5 NONWAIVER. No waiver of any breach of any provision of this
Agreement shall constitute a waiver of any prior, concurrent or subsequent
breach of the same or any other provisions hereof, and no waiver shall be
effective unless made in writing and signed by an authorized representative of
the waiving party.

         8.6 FORCE MAJEURE. Neither party shall be deemed to be in default of or
to have breached any provision of this Agreement as a result of any delay,
failure in performance or interruption of service, resulting directly or
indirectly from acts of God, acts of civil or military authorities, civil
disturbances, wars, strikes or other labor disputes, fires, transportation
contingencies, interruptions in telecommunications or Internet services or
network provider services, failure of equipment and/or software, other
catastrophes or any other occurrences which are beyond such party's reasonable
control.

         8.7 NOTICES. Any notice or other communication required or permitted to
be given hereunder shall be given in writing and delivered in person, mailed via
confirmed facsimile or e-mail, or delivered by recognized courier service,
properly addressed and stamped with the required postage, to the individual
signing this Agreement on behalf of the applicable party at its address
specified in the opening paragraph of the agreement and shall be deemed
effective upon receipt. Either party may from time to time change the individual
to receive notices or its address by giving the other party notice of the chance
in accordance with this section. In addition, a copy of any notice sent to
InfoSpace shall also be sent to the following address:

         InfoSpace.com, Inc.                Freei Networks, Inc.
         15375 NE 90th Street               909 South 336th St. Suite 110
         Redmond, WA 98052                  Federal Way, WA 98003
         Fax: (425) 883-4846                Fax: (253) 661-3431
         Attention: General Counsel         Attention: Jolene Smith

         8.8 SAVINGS. In the event any provision of this Agreement shall for any
reason be held to be invalid, illegal or unenforceable in any respect, the
remaining provisions shall remain in full force and effect. If any provision of
this Agreement shall, for any reason, be determined by a court of competent
jurisdiction to be excessively broad or unreasonable as to scope or subject,
such provision shall be enforced to the extent necessary to be reasonable under
the circumstances and consistent with applicable law while reflecting as closely
as possible the intent of the parties as expressed herein.

         8.8 INTEGRATION. This Agreement contains the entire understanding of
the parties hereto with respect to the transactions and matters contemplated
hereby, supersedes all previous agreements or negotiations between InfoSpace and
Company concerning the subject matter hereof, and cannot be amended except by a
writing signed by both parties. This Agreement does not constitute an offer by
InfoSpace and it shall not be effective until signed by both parties.

         8.9 COUNTERPARTS; ELECTRONIC SIGNATURE. This Agreement may be executed
in counterparts, each of which will be deemed an original, and all of which
together constitute one and the same instrument. To expedite the process of
entering into this Agreement, the parties acknowledge that Transmitted Copies of
the Agreement will be equivalent to original documents until such time as
original documents are

                                      -8-
<PAGE>

completely executed and delivered. "Transmitted Copies" will mean copies that
are reproduced or transmitted via photocopy, facsimile or other process of
complete and accurate reproduction and transmission.

         IN WITNESS WHEREOF, the parties have duly executed and delivered this
Agreement as of the Effective Date.

FREEI NETWORKS, INC.                             INFOSPACE.COM, INC.
("Company)                                       ("InfoSpace")

By: /s/ Bob McCausland                          By /s/ Charles Stubbs
  --------------------------                       -----------------------------

Name Robert (Bob) McCausland                     Name: Charles Stubbs

Title President/CEO                              Title: V.P. Bus. Dev.

                                      -9-

<PAGE>

                                    EXHIBIT A
                                     CONTENT

The Content consists of, but is not limited to, the following indexes,
directories and other items and services (as the same may by updated, revised or
modified by InfoSpace in its sole discretion from time to time):

 1.       Yellow Pages
 2.       White Pages
 3.       Netsearch
 4.       Classifieds
 5.       City Guides
 6.       Finance
 7.       News
 8.       Sports news
 9.       Community
 10.      Government
 11.      E-Shopping
 12.      International Listings
 13.      Business Services
 14.      Entertainment
 15.      ActiveShopper
 16.      InfoSpace "Personal Desktop Portal"
 17.      Other items and services that may from time to time be added to the
          InfoSpace Web Sites by InfoSpace (in its sole discretion)
 18.      MyFreei - personal section

 The following items are not included as part of the Content:

 1.       Web Page Creator
 2.       Event Manager
 3.       Forums
 4.       Web-based email
 5.       Address Book
 6.       Chat

         The actual name of these services may change. Company must obtain the
         prior approval of InfoSpace if Company desires to change the name of
         any of these services.

                                      -10-
<PAGE>

                                    EXHIBIT B

                                   TRADEMARKS
         COMPANY MARKS

             [Logo]

    -     FREEI.NET (STYLIZED)
    -     FREEI.NET (TYPED)
    -     FREEI NETWORKS
    -     IREPORTS
    -     ISEE
    -     FREEISEARCH
    -     INET
    -     FREEIMALL (TYPED)
    -     FREEIMALL (STYLIZED)
    -     FREEIVALUES
    -     FREEICHAT
    -     FREEIPAGE
    -     FREEITOWN
    -     FOR FREE INTERNET ACCESS & EMAIL SERVICES GO TO FREEI NETWORKS AT
          HTTP://WWW.FREEI.NET/
    -     BECAUSE THE INTERNET WAS MEANT TO BE FREE
    -     GET YOUR 100% FREE INTERNET ACCESS & EMAIL AT WWW.FREEI.NET
    -     YOUR 100% FREE INTERNET ACCESS & EMAIL SERVICE PROVIDER
    -     FREEIFRIENDS

    INFOSPACE MARKS

    InfoSpace
    InfoSpace.com

                  The Brand That's Building The Internet

  [Logo]

                  Powered By InfoSpace

         Powered by InfoSpace.com
         ActiveShopper
         PageExpress
         Search Engine For The Real World
         The Stuff That Portals Are Made Of
         Personal Desktop Portal

                                      -11-
<PAGE>

                                    EXHIBIT C

1. DEFINITIONS. As used in this Agreement, the following terms have the
following defined meanings:

         CO-BRAND Fee" means a monthly nonrefundable sum in the amount of [*].

         "IMPRESSION THRESHOLD DATE" means the first date on which the number of
Impressions meets or exceeds the Impression Threshold.

2. TERM. The term of this Agreement shall commence on the Effective Date and,
unless earlier terminated or extended as provided in this Agreement, shall end
upon the [*] anniversary of this Agreement ("Term").

3. CO-BRAND FEE. Infospace [*] the co-brand fee.

4. BANNER ADVERTISEMENTS. InfoSpace and/or Company shall have the right to serve
Banner Advertisements on the Co-branded Pages, to be determined from the choices
listed below. The appearance of the Banner Advertisements will be as reasonably
determined by InfoSpace; provided, that InfoSpace may reject any Banner
Advertisement if such Banner Advertisement would materially adversely affect the
download time or performance of such Co-branded page. Any available inventory of
Banner Advertisements sold by the Company for the Co-branded Pages shall be "run
of site" (e.g., not targeted to any specific type or area of the Co-branded
Pages). - The Company shall provide the content for any Banner Advertisements
sold by the Company to InfoSpace at the Company's sole expense and in a form and
format approved by InfoSpace. Neither party will submit for any Co-branded Page
any Banner Advertisement which contains any material that is libelous or
defamatory or that infringes any Intellectual Property Right or other right of
any third party.

         FOUR OPTIONS FOR GENERATING REVENUE FROM CO-BRANDED PAGES:

         The parties will agree in writing to one of the following four options
         in connection with the sale of Banner Advertisements on the Co-branded
         pages.

         1.       Infospace and COMPANY WILL divide banner inventory on
                  Co-branded Pages [*] and each party will be entitled
                  to retain all sums it receives from the sale of its
                  banner inventory.

         2.       Infospace may sell the Banner Advertisements exclusively.
                  Infospace will retain [*] of gross revenue as cost of sales
                  and will deliver to Company [*] of the remaining gross
                  revenue.

         3.       Company may sell the Banner Advertisements exclusively,
                  Company will retain [*] of gross revenues to cover cost of
                  sales and will deliver to InfoSpace [*] of the remaining
                  gross revenue.

         4.       Infospace shall have the exclusive right to sell banner
                  inventory and will pay to Company on a monthly basis [*]
                  for each click-through to Infospace applications.

5. RECORDS AND AUDIT; LATE PAYMENTS. During the Term, the parties shall maintain
accurate records of click-through revenues and fees payable to the other
party pursuant to this Exhibit C. Either party may, upon ten (10) days advance
notice to the other party, examine and audit such records of the other party in
order to verify the figures reported in any reports made to the other party and
any amounts owed to the other party under this Agreement. Any such audit shall
be conducted, to the extent possible, in a manner that does not interfere with
the ordinary business operations of the other party. In the event that any audit
shall reveal an underpayment of more than five percent (5%) of the amounts
due for any quarter, the other party will reimburse the other party for the
actual costs of such audit.

                                      -12-

[*] = Confidential Treatment Requested

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