Document:

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                                                                    EXHIBIT 10.5

NORTH CAROLINA    )
                  )                                              LEASE AGREEMENT
GUILFORD COUNTY   )

      THIS LEASE, made and entered into this the 12th day of November, 1999, by
and between HIGHWOODS REALTY LIMITED PARTNERSHIP, a North Carolina Limited
Partnership, hereinafter referred to as "Landlord" and BIRTHDAY EXPRESS.COM,
INC., a Washington Corporation, hereinafter referred to as "Tenant".

                                    RECITALS

      Landlord is seized of the business premises described herein, having space
therein to let. Tenant desires to lease such space from Landlord. The parties
desire to enter into a Lease Agreement defining their respective rights, duties
and liabilities relating to the premises.

      IN CONSIDERATION of the mutual covenants contained herein, the parties
agree as follows:

1.    DESCRIPTION OF PREMISES: Landlord is the owner of a 86,400 rentable square
foot building (the "Building") located at 488 GALLIMORE DAIRY ROAD, GUILFORD
COUNTY, GREENSBORO, NORTH CAROLINA, being more fully described on Exhibit "A"
attached hereto and hereby made a part hereof.

      The Leased Space shall consist of that portion of said Building and other
improvements in the amount of 32,000 rentable square feet, as outlined in red on
Exhibit "B" attached hereto, said space TOGETHER WITH ALL PARKING AND OTHER
COMMON AREA RIGHTS IS hereinafter referred to as the "Premises". The entire
LEASED SPACE Premises shall be for the exclusive use of Tenant, its agents,
servants, employees and invitees for office and related uses. The LEASED SPACE
is more commonly known as Suite D.

      Landlord represents and warrants that it is the owner in fee simple of the
Premises and that there are no covenants, restrictions or zoning or other
regulations which prevent, RESTRICT, or are violated by, this Lease or the use
of the Premises as contemplated herein.

2.    TERM: The term of this Lease shall be for a period of FIVE (5) YEARS,
beginning DECEMBER 1, 1999, the "Commencement Date", through NOVEMBER 30, 2004,
the "Termination Date". IN THE EVENT LANDLORD SHALL PERMIT TENANT TO TAKE
POSSESSION OF THE PREMISES PRIOR TO THE COMMENCEMENT DATE REFERENCED ABOVE, ALL
THE TERMS AND CONDITIONS OF THIS LEASE HALL APPLY. IF LANDLORD CAN NOT DELIVER
THE PREMISES TO THE TENANT AFTER THE COMMENCEMENT DATE SET FORTH HEREIN, THEN
RENT WILL NOT COMMENCE UNTIL SUCH DATE AS TENANT TAKES POSSESSION OF THE
PREMISES. THE ABOVE, HOWEVER, IS SUBJECT TO THE PROVISION THAT THE PERIOD
PERMITTED FOR THE DELAY OF DELIVERY OF POSSESSION OF THE PREMISES SHALL NOT
EXCEED FORTY FIVE (45) DAYS AFTER THE COMMENCEMENT DATE SET FORTH IN THE FIRST
SENTENCE OF THIS SECTION 2 (EXCEPT THAT THOSE DELAYS BEYOND LANDLORD'S CONTROL,
INCLUDING, WITHOUT LIMITATION, THOSE ENCOMPASSED IN THE MEANING OF THE TERM
"FORCE MAJEURE", OR CAUSED BY TENANT (THE "DELAYS") SHALL BE EXCLUDED IN
CALCULATING SUCH PERIOD). IF LANDLORD DOES NOT DELIVER POSSESSION TO TENANT
WITHIN SUCH PERIOD, THEN TENANT MAY TERMINATE THIS LEASE BY WRITTEN NOTICE TO
LANDLORD; PROVIDED, THAT WRITTEN NOTICE SHALL BE INEFFECTIVE IF GIVEN AFTER
TENANT TAKES POSSESSION OF ANY PART OF THE PREMISES, OR IF GIVEN MORE THAN ONE
HUNDRED (100) DAYS AFTER THE ORIGINAL COMMENCEMENT DATE PLUS THE TIME OF ANY
DELAYS.

3.    BASE RENT: Tenant shall pay base rental for the Premises leased as
follows:

<TABLE>
<CAPTION>
       TERM:           MONTHLY RENT:    ANNUAL RENT:   PRICE P.R.S.F.:
       -----           -------------    ------------   ---------------
<S>                    <C>              <C>            <C>
12/01/99 -- 11/30/01    $10,586.67      $127,040.00         $3.97
12/01/01 -- 11/30/03    $11,013.33      $132,160.00         $4.13
12/01/03 -- 11/30/04    $11,466.67      $137,600.00         $4.30
</TABLE>

      All rental payments are payable in advance on the first (1st) day of each
month without prior offset or deduction to Landlord at Landlord's address
specified in Section 41 hereof entitled "NOTICES" or at such other place as
Landlord may direct. In the event any Tenant check tendered to Landlord in
payment of its obligations hereunder is returned by Tenant's bank for
insufficient funds, any and all charges incurred by Landlord as a result shall
be billed to Tenant by Landlord as

                                       1
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additional rent hereunder.

4.    OCCUPANCY AND ACCEPTANCE OF PREMISES: Landlord shall deliver actual
possession of the Premises to Tenant on the Commencement Date according to the
specifications indicated in Exhibit "B" attached hereto and by this reference
made a part hereof, provided Landlord is able to furnish to Tenant evidence
obtained from local governmental authorities having jurisdiction that the
Premises have been duly inspected and approved for Tenant's occupancy. If the
Premises are ready for Tenant's occupancy prior to the Commencement Date,
Landlord shall so notify Tenant and Tenant may accept such early occupancy,
provided, however, in such event Tenant shall pay to Landlord base rental
calculated on a daily basis assuming a 365 day year, for each day Tenant shall
occupy the Premises prior to the Commencement Date. If permission is given to
Tenant to occupy the Demised Premises prior to the date of commencement of the
term hereof, such occupancy shall be subject to all the provisions of this Lease
except those relating to the term f this Lease.

      Upon Tenant's occupancy of the Premises Tenant shall render to Landlord,
within THIRTY (30) days of such occupancy date, a written notice listing each
and every respect in which the Premises are incomplete according to such
building specifications as noted above; Landlord shall then have sixty (60) days
from its receipt of said notice to complete those items contained in such
listing. The existence of such items shall not alter the Tenant obligation to
pay rent pursuant to Section 3, EXCEPT TO THE EXTENT THEY IMPAIR TENANT'S
ABILITY TO CONDUCT ITS BUSINESS.

      During Tenant's move-in, a representative of the Tenant must be on-site
with any moving company to ensure proper treatment of Premises Elevators in
multi-story office buildings must remain in use for the general public during
business hours. Any specialized use of elevators must be coordinated with the
Landlord's Property Manager. All packing materials and refuse must be properly
disposed of. Any damage or destruction due to moving CAUSED BY TENANT OR
TENANT'S MOVING COMPANY will be the sole responsibility of the Tenant.

      LANDLORD WARRANTS THAT THE PREMISES CURRENTLY COMPLY WITH ALL LAWS,
INCLUDING THE AMERICANS WITH DISABILITIES ACT ("ADA"). Tenant shall, at its own
expense, comply, IN ITS USE OF THE PREMISES, with all future governmental
regulations to include those relating to the ADA.

5.    AUDIT: If Tenant disputes the amount of operating expenses as set forth in
the invoice from the Landlord within forty -five days after receipt thereof,
Tenant shall have the right upon notice to have Landlord's book and records
relating to operating expenses audited by a qualified professional selected by
Tenant or by Tenant itself. If after such audit Tenant still disputes the amount
of operating expenses, a certification as to the proper amount shall be made by
an independent certified public accountant in consultation with LANDLORD'S AND
TENANT'S PROFESSIONALS, which certification shall be final and conclusive,
ABSENT MANIFEST ERROR. If such audit reveals that operating expenses were
overstated in the calendar year audited Landlord shall within thirty (30) days
after the certification pay to Tenant the amount of any overstatement which it
had collected from Tenant, AND IF THE OVERSTATEMENT IS GREATER THAN THREE
PERCENT (3%), LANDLORD SHALL PAY ALL OF TENANT'S REVIEW AND AUDIT COSTS.
However, if such certification does not show that Landlord had made such an
overstatement then Tenant shall pay both the costs of its professional as well
as the reasonable charges of Landlord's independent certified public accountant
engaged to determine the correct amount of operating expenses. If the
certification shows that Landlord has undercharged Tenant then Tenant shall
within thirty (30) days pay to Landlord the amount of any undercharge.

      Books and records necessary to accomplish any audit permitted under this
Section shall be retained for twelve months after the end of each calendar year,
and on receipt of notice of Tenant's dispute of the operating expenses shall be
made available to Tenant to conduct the audit, which may be either at the
Premises, or at Landlord's office in Winston-Salem, North Carolina.

      In the event that the Tenant elects to have a professional audit
Landlord's operating expenses as provided in this Lease, such audit must be
conducted by an independent nationally or regionally recognized accounting firm
that is not being compensated by Tenant on a contingency fee basis. All
information obtained through such audit as well as any compromise, settlement or
adjustment reached as a result of such audit shall be held in strict confidence
by Tenant and its officers, agents, and employees and as a condition to such
audit, the Tenant's auditor shall execute a written agreement agreeing that the
auditor is not being compensated on a contingency fee basis and that all
information obtained through such audit as well as any compromise, settlement or
adjustment reached as a result of such audit, shall be held in strict confidence
and shall not be revealed in any manner to any person except upon the prior
written consent of the Landlord, which consent shall not be unreasonably
withheld in Landlord's sole discretion, or if required pursuant to any
litigation between Landlord and Tenant materially related to the facts disclosed
by such audit, or if required by law.

      No subtenant shall have any right to conduct an audit and no assignee
shall conduct an audit for any period during which such assignee was not in
possession of the Premises.

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6.    LATE PAYMENT OF RENT: All monthly installments of rent herein stipulated
are due in advance without prior offset or deduction on the FIRST (1ST) DAY OF
EACH MONTH during the term hereof, as set forth in Section 3 hereof entitled
"BASE RENT". All rents not received on the first (1st) day of the month shall be
deemed "past due" and all rents not received by the Landlord by the tenth (10th)
day of each month during the term hereof shall be subject to a late charge of 5%
of the amount due.

      In any such event, Landlord shall so invoice Tenant for any such charge,
which shall become due immediately upon Tenant's receipt of the invoice but in
no event later than TWENTY (20) days from the invoice date.

      Once any payment of rent is thirty (30) days past due, the total due,
including the 5% charge, shall bear interest at eighteen (18) percent per annum.

7.    NO ACCORD AND SATISFACTION: No acceptance by Landlord of a lesser sum than
the Base Rent, late charges, additional rent and other sums then due shall be
deemed to be other than on account of the earliest installment of such payments
due, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment be deemed as an accord and satisfaction, and
Landlord may accept such check or payment without prejudice to Landlord's right
to recover the balance of such installment or pursue any other remedy in this
Lease provided.

8.    USE: Premises shall be used for such office, assembly, storage,
distribution, RETAIL and manufacturing activities as are allowed under existing
zoning and recorded covenants. Landlord and Tenant both acknowledge that the
extent and height to which Tenant can store and rack goods and materials is
dependent on the type, volume, and density that goods and materials are stored.
Landlord makes no representations as to the ability and height to which goods
and materials may be stored in the Premises. For clarification, Tenant should
consult current local fire codes. Tenant shall not conduct, or allow to be
conducted, on or within the Premises any business or permit any act which in any
way increases the cost of fire insurance on the building or constitutes a
nuisance or is contrary to or in violation of the laws, statutes or ordinances
of local state or federal governments having jurisdiction and Tenant agrees to
comply, at Tenant's expense, with all governmental regulations to include those
relating to the Americans with Disabilities Act (ADA), BUT LANDLORD SHALL BE
RESPONSIBLE FOR THE BUILDING AND THE PREMISES COMPLYING WITH ALL LAWS,
REGULATIONS, ADA, etc. Any violation of this provision by Tenant shall be a
breach of this Lease.

      It is hereby agreed and understood that the following functions are
prohibited outside the building walls or in the parking or service areas:
storage of any item; manufacture or assembly of any product; refuse
accumulation; rallies or meetings; any conduct of business. Personal property of
Tenant of any type or size shall be permitted outside the Premises only during
times of loading or unloading operations.

9.    QUIET ENJOYMENT: The Landlord covenants that Tenant, upon paying the
Landlord the rental stipulated herein together with all other charges reserved
herein, and performing the covenants, promises and agreements herein, shall
peaceably and quietly have, hold and enjoy the Premises and all rights,
easements, appurtenances and privileges belonging or appertaining thereto,
during the full term hereby granted and any extensions or renewals thereof.

10.   COMMON AREAS: As used in this Lease, Common Areas shall mean all areas of
the entire building and appurtenances which are available for the common use of
tenants and which are not held for the exclusive use of the Tenant or other
tenants, including but not limited to: the parking areas and entrances and exits
thereto, driveways and truck service ways, sidewalks, landscaped areas, access
roads, building equipment rooms, and other areas and facilities provided for the
common or joint use and benefit of occupants of the Building, their employees,
agents, customers and invitees. Landlord reserves the right, from time to time,
to REASONABLY alter said common areas, including converting common areas into
leasable areas, constructing additional parking facilities in the common areas,
increasing or decreasing common area land and/or facilities and to exercise
control and management of the common areas and to establish, modify, change and
enforce such reasonable Rules and Regulations as Landlord in its discretion may
deem desirable for the management of the Building. IN THE EVENT OF AN INCREASE
(ACCEPTING AN INCREASE THAT WILL BENEFIT THE TENANTS) OR A DECREASE IN THE
COMMON AREA, TENANT'S PERCENTAGE SHARE WILL BE ADJUSTED ACCORDINGLY.

      Tenant agrees to abide by and conform to such rules and regulations, AS DO
NOT UNREASONABLY INTERFERE WITH TENANT'S BUSINESS, and shall be responsible for
the compliance with same by its employees, agents, customers and invitees. The
failure of Landlord to enforce any of such Rules and Regulations against Tenant
or any other tenant shall not be deemed to be a waiver of same.

      Landlord shall have the right to restrict or close all or any portion of
the common areas at such times and for such

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periods as may, in the REASONABLE opinion of the Landlord, be necessary to
prevent a dedication thereof, or to preserve the status thereof as private
property, or to prevent the accrual of any rights in any person; and Landlord
may also close said common areas for purposes of maintenance and repair as may
be required from time to time.

      Tenant shall pay to Landlord its proportionate share of the entire common
area maintenance cost. Tenant's proportionate share shall be the relation of
Tenant's 32,000 rentable square foot area to the 86,400 rentable square foot of
total building area, or 37.04%, TO BE ADJUSTED IF ANY BUILDING AREA IS CONVERTED
TO COMMON AREA. Common Area expenses shall include, but are not limited to the
following incurred by Landlord with respect to the Building: snow removal;
window washing; painting; security services; any alteration or other work
required by any governmental authority AS A RESULT OF LAWS HEREAFTER ENACTED OR
EFFECTIVE, not attributable primarily to the particular use made by a particular
tenant to include costs expended by Landlord in order to place and keep the
Building and common areas in compliance with the Americans with Disabilities Act
(ADA) and any other legislation by any governmental body, casualty, boiler and
machinery, loss of rents insurance and general and REASONABLE excess liability
insurance; cleaning, striping, sealing and minor repairs to parking areas,
driveways, sidewalks and loading areas (but not replacement); lawn care and
landscaping maintenance; management and administrative fees; and all other
expenses paid in connection with the operation of the Building chargeable
against income. Landlord, upon written demand by Tenant therefor, but not sooner
than ninety (90) days after the expiration of a lease year shall furnish Tenant
a summary schedule of Common Area Expenses for such lease year if there shall
occur therein an increase in Common Area Expenses as aforesaid.

      During the term hereof, Landlord shall notify Tenant of its proportionate
share due for such cost. Landlord shall have the option through the Lease term
to require Tenant's reimbursement on either a monthly, quarterly or annual
basis, at Landlord's sole discretion, to become due and payable as additional
rent within ten (10) days, if invoiced monthly or thirty (30) days, if invoiced
quarterly or annually, from the date of invoice. TENANT SHALL PAY TO LANDLORD A
MONTHLY AMOUNT EQUAL TO ONE THOUSAND THREE HUNDRED THIRTY THREE DOLLARS AND
33/100 ($1,333.33). THIS ESTIMATED AMOUNT SHALL COVER THE COST OF COMMON AREA
MAINTENANCE EXPENSES, WHICH WILL BE TRUED-UP AT THE END OF EACH CALENDAR YEAR.

11.   ASSIGNMENT AND SUBLETTING: Tenant covenants and agrees that neither this
Lease nor the term hereby granted, nor any part thereof, will be assigned,
mortgaged, pledged, encumbered or otherwise transferred (INDIVIDUALLY AND
COLLECTIVELY REFERRED TO AS A "TRANSFER"), by operation of law or otherwise, and
that neither the Premises, nor any part thereof, will be sublet or advertised
for subletting or occupied, by anyone other than Tenant, or for any purpose
other than as hereinabove set forth, without the prior written consent of
Landlord not to be unreasonably withheld. Landlord's withholding of consent
shall be deemed reasonable if the use or occupancy of the Premises by such
sublessee or assignee IS LIKELY TO INCREASE THE LIKELIHOOD of Landlord being
responsible for any costs of compliance with the Americans with Disabilities Act
(ADA) or any other legislation by any governmental body. NOTWITHSTANDING THE
FOREGOING:

      (a) ANY TRANSFER TO ANY CORPORATION OR ENTITY CONTROLLED (AS HEREINAFTER
DEFINED) BY TENANT, OR TO THE SURVIVING CORPORATION IN THE EVENT OF A
CONSOLIDATION OR MERGER TO WHICH TENANT SHALL BE A PARTY AND ANY MAJOR CHANGE
(AS HEREINAFTER DEFINED) MUST BE APPROVED BY LANDLORD IN ACCORDANCE WITH THE
FIRST PARAGRAPH OF SECTION 11, ABOVE AND, WITHOUT SUCH APPROVAL, SHALL AT
LANDLORD'S ELECTION BE VOID AND/OR CONSTITUTE AN EVENT OF DEFAULT. THE TERM
"CONTROL" OR "CONTROLLED" SHALL MEAN OWNERSHIP OF MORE THAN FIFTY PERCENT (50%)
OF THE VOTING STOCK OF A CORPORATION OR MORE THAN FIFTY PERCENT (50%) OF ALL OF
THE LEGAL AND EQUITABLE INTEREST IN ANY OTHER BUSINESS ENTITY. THE TERM "MAJOR
CHANGE" AS USED HEREIN SHALL MEAN ANY REORGANIZATION, RECAPITALIZATION,
REFINANCING OR OTHER TRANSACTION OR SERIES OF TRANSACTIONS INVOLVING TENANT
WHICH RESULTS IN THE NET WORTH OF TENANT AND ITS CONSOLIDATED SUBSIDIARIES
IMMEDIATELY AFTER SUCH TRANSACTION(S) BEING LESS THAN FIFTY PERCENT (50%) OF THE
NET WORTH OF TENANT AND ITS CONSOLIDATED SUBSIDIARIES AS OF THE END OF THE
FISCAL YEAR IMMEDIATELY PRECEDING THE DATE OF THIS LEASE.

      (b)   A SALE, TRANSFER OR ASSIGNMENT OF A GENERAL PARTNER'S INTEREST OR
ANY PORTION THEREOF IN TENANT, IF TENANT IS A PARTNERSHIP, OR A SALE, TRANSFER
OR ASSIGNMENT OF TWENTY-FIVE PERCENT (25%) OR MORE OF THE VOTING STOCK OF TENANT
IF TENANT IS A CORPORATION, WHETHER SUCH SALE, TRANSFER OR ASSIGNMENT OCCURS IN
A SINGLE TRANSACTION OR A SERIES OF TRANSACTIONS, SHALL BE DEEMED A TRANSFER AND
REQUIRE LANDLORD'S CONSENT IN ACCORDANCE WITH THE PROCEDURES SPECIFIED IN THE
FIRST PARAGRAPH OF SECTION 11, ABOVE; PROVIDED, HOWEVER, THAT NOTWITHSTANDING
ANY PROVISION OF THIS LEASE TO THE CONTRARY, A SALE OR TRANSFER OF THE CAPITAL
STOCK OF TENANT SHALL NOT BE DEEMED A TRANSFER IF (i) SUCH SALE OR TRANSFER
OCCURS IN CONNECTION WITH ANY BONA FIDE FINANCING OR CAPITALIZATION FOR THE
BENEFIT OF TENANT, OR (ii) TENANT BECOMES A PUBLICLY TRADED CORPORATION.

      (c)   SUBJECT TO SUBSECTION (B) ABOVE, IF TENANT IS A CORPORATION, LIMITED
LIABILITY COMPANY, PARTNERSHIP, OR SIMILAR ENTITY, AND IF THE ENTITY, IF ANY,
WHICH OWNS OR CONTROLS A MAJORITY OF THE VOTING SHARES/RIGHTS AT ANY TIME
CHANGES FOR ANY REASON, SUCH CHANGE OF OWNERSHIP OR CONTROL SHALL CONSTITUTE A
TRANSFER; PROVIDED THAT IF TENANT'S NET WORTH AFTER SUCH CHANGE IN THE OWNERSHIP
OR CONTROL OF A MAJORITY OF THE VOTING SHARES/RIGHTS IS EQUAL TO THE GREATER OF
TENANT'S NET WORTH AT THE DATE OF THIS LEASE OR THE NET WORTH OF THE TENANT ON
THE DAY PRIOR TO SUCH CHANGE

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IN THE OWNERSHIP OR CONTROL OF A MAJORITY OF THE VOTING SHARES/RIGHTS, AND THE
PROVISIONS OF CLAUSES (1), (4) AND (5) OF SUBSECTION (d) BELOW ARE OTHERWISE
SATISFIED, SUCH CHANGE OF OWNERSHIP OR CONTROL SHALL CONSTITUTE A "PERMITTED
TRANSFER." FURTHERMORE, A CHANGE IN THE OWNERSHIP OR CONTROL OF A MAJORITY OF
THE VOTING SHARES/RIGHTS OF TENANT SHALL NOT CONSTITUTE A TRANSFER SO LONG AS
TENANT IS AN ENTITY WHOSE OUTSTANDING STOCK IS LISTED ON A RECOGNIZED SECURITY
EXCHANGE, OR IF AT LEAST EIGHTY PERCENT (80%) OF ITS VOTING STOCK IS OWNED BY
ANOTHER ENTITY, THE VOTING STOCK OF WHICH IS SO LISTED.

      (d)   NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH 11 TO THE CONTRARY, USE
OF A PORTION OF THE PREMISES BY ANY OF TENANT'S AFFILIATES SHALL NOT BE DEEMED A
TRANSFER REQUIRING LANDLORD'S CONSENT. FOR PURPOSES OF THIS LEASE, THE TERM
"AFFILIATE" SHALL MEAN ANY CORPORATION, LIMITED LIABILITY COMPANY OR PARTNERSHIP
WHICH CONTROLS, IS CONTROLLED BY, OR IS UNDER COMMON CONTROL WITH TENANT. IN
ADDITION, TENANT MAY ASSIGN ITS ENTIRE INTEREST UNDER THIS LEASE TO A SUCCESSOR
TO TENANT BY PURCHASE, MERGER, CONSOLIDATION OR REORGANIZATION WITHOUT THE
CONSENT OF LANDLORD, PROVIDED THAT ALL OF THE FOLLOWING CONDITIONS ARE SATISFIED
(A "PERMITTED TRANSFER"): (1) TENANT IS NOT IN DEFAULT UNDER THIS LEASE; (2)
TENANT'S SUCCESSOR SHALL OWN ALL OR SUBSTANTIALLY ALL (WHICH FOR PURPOSES OF
THIS LEASE SHALL BE DEEMED TO BE AT LEAST EIGHTY PERCENT (80%)) OF THE ASSETS OF
TENANT; (3) TENANT'S SUCCESSOR SHALL HAVE A NET WORTH WHICH IS AT LEAST EQUAL TO
THE GREATER OF TENANT'S NET WORTH AT THE DATE OF THIS LEASE OR TENANT'S NET
WORTH AS OF THE DAY PRIOR TO THE PROPOSED PURCHASE, MERGER, CONSOLIDATION OR
REORGANIZATION; (4) THE USE OF THE PREMISES BY SUCH SUCCESSOR TO TENANT WILL NOT
VIOLATE THE PERMITTED USE; AND (5) TENANT SHALL GIVE LANDLORD WRITTEN NOTICE AT
LEAST 15 DAYS PRIOR TO THE DATE THE PROPOSED PURCHASE, MERGER, CONSOLIDATION OR
REORGANIZATION ACTUALLY OCCURS. TENANT'S NOTICE TO LANDLORD SHALL INCLUDE
INFORMATION AND DOCUMENTATION SHOWING THAT EACH OF THE ABOVE CONDITIONS HAS BEEN
SATISFIED. IF REQUESTED BY LANDLORD, TENANT'S SUCCESSOR SHALL SIGN A
COMMERCIALLY REASONABLE FORM OF ASSUMPTION AGREEMENT

12.   LANDLORD'S REPAIRS: The Landlord , AT ITS SOLE COST AND EXPENSE, SHALL
maintain and keep in good condition and repair the roof, parking areas and
exterior landscaping, foundation, exterior and supporting walls of the Building
together with repairs necessary due to structural defects, if any. Landlord
shall also maintain and repair, AT ITS SOLE COST AND EXPENSE, the electrical
wiring (from the utility company's distribution lines to the Premises, including
the electrical service exclusive of fuses, fuse blocks, breaker units or meter
deposits) servicing the Premises, the water line servicing the Premises, and the
sanitary sewer lines and/or septic tank servicing the Premises. However, the
Landlord shall not be responsible for such maintenance and repairs in the event
the same are required as a result of the gross negligence or willful act of the
Tenant or its clients, customers, licensees, assignees, agents, employees or
invitees and further, which event the cost of such maintenance and repairs so
required shall be the sole responsibility of the Tenant.

13.   TENANT REPAIRS; ALTERATIONS: The Tenant shall effect, at its sole cost and
expense, all maintenance and repairs to the following components of said
Premises, TO THE EXTENT SOLELY SERVING THE LEASED SPACE: the floor and wall
coverings (whether paint or otherwise); lights, light fixtures, and light bulbs;
interior and exterior doors and door locks, overhead doors; ceiling tiles; water
heaters; windows, frames, glass, window blinds; all heating, ventilating and air
conditioning equipment; all plumbing and electrical not described in Section 12
above; security systems and any other improvements not required to be maintained
by Landlord in the immediately preceding Section hereof, except in the event the
improvements installed by Landlord may be defective in material or labor in
installation. All such repairs and replacements required by this section shall
be made only by persons approved in advance by Landlord, NOT TO BE UNREASONABLY
WITHHELD. Should Tenant fail to comply with the maintenance and repairs required
above, the Landlord shall have the right to enter on the Premises and make
necessary repairs and perform and maintenance required. Any cost incurred by
Landlord shall be paid by the Tenant at cost plus AN AGGREGATE of ten percent
(10%) FOR overhead and for profit.

      Tenant shall submit to the Landlord for Landlords' prior written approval
all of the plans and specifications for any alterations, additions or
improvements in and to the Premises which Tenant may deem desirable or necessary
in its use and occupancy thereof. Such alterations, additions or improvements
shall not be made without the prior written approval of Landlord, NOT TO BE
UNREASONABLY WITHHELD. If any changes are made to the plans by the Landlord,
Tenant shall review final plans and provide written approval prior to Landlord
starting upfit construction All such alterations, additions or improvements
shall be made in accordance with applicable city, county, state and federal laws
and ordinances, and building and zoning rules and regulations and all present
and future governmental regulations relating to the Americans with Disabilities
Act (ADA). Landlord's approval hereunder shall not be deemed A warranty that
Tenant's alterations meet such ADA regulations, however, such consent shall
carry a requirement that such alterations will be constructed by Tenant, at its
own expense, in full compliance with all existing ADA governmental regulations.
Tenant shall be liable for all damages or injuries which may result to any
person or property by reason of or TO THE EXTENT CAUSED BY ANY alterations,
additions or improvements made by it to the Premises and shall hold the Landlord
harmless with respect thereto. All additions and improvements made by the Tenant
shall become a part of the Premises and shall, upon the termination or
expiration of this Lease, belong to Landlord except as may be otherwise set
forth in a letter agreement or other written

<PAGE>

instrument executed by the parties hereto and attached to this Lease as an
amendment hereto and thereby made a part hereof.

      In the event Tenant performs any alterations, additions or improvements to
the Premises, Tenant agrees that it shall provide to Landlord a reproducible set
of as-built plans for Landlord's files.

      If Tenant fails to perform Tenant's obligations under this Section, OR IF
TENANT FAILS TO EXERCISE REASONABLE DILIGENCE IN MAKING NECESSARY REPAIRS AND
REPLACEMENTS, Landlord may at its option enter upon the Premises after ten (10)
days prior written notice to Tenant, perform such obligation on Tenant's behalf,
and the cost thereof together with interest thereon shall become due and payable
as additional rental to Landlord together with Tenant's next rental installment.

      At Landlord's option, EXERCISED IN WRITING AT TIME OF APPROVAL, Landlord
may require that Tenant remove any or all alterations or improvements at
Tenant's expense upon termination of the Lease.

14.   HEATING, VENTILATION AND AIR CONDITIONING: The Tenant shall at its sole
cost and expense keep in force a maintenance contract for the entire term of
this Lease on all heating, air conditioning and ventilation equipment pertaining
SOLELY to the Premises, providing for service inspections to be done on a
semi-annual basis. Tenant shall submit a copy of said contract to Landlord
within ten (10) days after occupancy of the Premises. Landlord must REASONABLY
approve the terms of the maintenance contract and the firm Tenant chooses as the
maintenance contractor.

      Landlord shall be responsible for replacement of any defective motor or
compressor within the system provided it is not as a result of negligence or
willful act of the Tenant, its clients, customers, licensees, assignees, agents,
employees, or invitees. However, Tenant's failure to provide the required
maintenance contract CONSTITUTES A NEGLIGENT OR WILLFUL ACT AND WHEREBY RELEASES
Landlord form any and all liability for said equipment.

      Upon termination of this Lease, Tenant will deliver the HVAC equipment in
good operating condition, NORMAL WEAR AND TEAR EXCEPTED.

15.   FEDERAL REGULATION AND/OR PROHIBITION OF CFC'S: Due to an environmental
threat that the earth's ozone layer has deteriorated, there is international
concern for the control of Chlorofluorocarbons CCFC's") and possible ban
thereof. Future legislation could MANDATE:

      1) New maintenance standards and procedures on HVAC equipment in order to
      reduce the amount of freon existing in the system; or

      2) Conversion of the equipment in order to accommodate the use of a
      substitute chemical; or

      3) Replacement of the equipment in the event the equipment does not comply
      with the required performance and maintenance standards.

      Landlord and Tenant hereby acknowledge that any costs associated with the
above shall be considered a maintenance item and included in common area
maintenance charges.

16.   SUBORDINATION AND ATTORNMENT: Tenant agrees that this Lease shall be
subject and subordinate to any mortgages or Deeds of Trust now or hereafter
placed upon the Premises and to all modifications thereto, and to all present
and future advances made with respect to any such mortgage or deed of trust.
Tenant agrees, at any time during the term of this Lease, to execute any and all
documents necessary to effectuate this subordination, which Landlord may
request. Tenant agrees to attorn to the mortgagee, trustee, or beneficiary under
any such mortgage or deed of trust or the purchaser at a sale pursuant to the
foreclosure thereof. In the event of the sale, assignment, or transfer by
Landlord of its interest in the Premises to a successor in interest who
expressly assumes the obligations of the Landlord hereunder, the Landlord shall
thereupon be released or discharged from all of its covenants and obligations
hereunder, except such obligations AS shall have accrued prior to any such sale,
assignment or transfer; and Tenant agrees to look solely to any successor in
interest of the Landlord for performance of any such obligations. Tenant shall
have ten (10) days from its receipt of Landlord's request to deliver any such
fully executed documents to Landlord. Tenant's failure to execute and deliver
any such documents shall constitute a default hereunder. NOTWITHSTANDING ANY OF
THE FOREGOING, TENANT'S QUIET POSSESSION AND ENJOYMENT OF THE PREMISES SHALL NOT
BE DISTURBED SO LONG AS TENANT PERFORMS ITS OBLIGATIONS UNDER THIS LEASE.

17.   CHANGE IN OWNERSHIP OF PREMISES: If the ownership of the Premises or the
name or address of the party entitled to receive rent hereunder shall be
changed, the Tenant may, until receipt of proper notice of such change(s),

<PAGE>

continue to pay the rent and other charges herein reserved accrued and to accrue
hereunder to the party to whom and in the manner in which the last preceding
installment of rent or other charge was paid, and each such payment shall, to
the extent thereof, exonerate and discharge the Tenant.

18.   CONDEMNATION: If the whole of the Building, or such substantial portion
thereof, OR OF THE PARKING FOR THE BUILDING, as will make the Premises unusable
(OR WILL SUBSTANTIALLY IMPAIR THE USE) for the purposes referred to herein,
shall be condemned by any legally constituted authority for any public use or
purpose, then in either of said events the term hereby granted shall cease from
the time when possession thereof is taken by the condemning authority, and
rental shall be accounted for as between Landlord and Tenant as of that date. In
the event the portion condemned is such that the remaining portion INCLUDING
PARKING can, after restoration and repair, be made usable for Tenant's purposes,
then this Lease shall not terminate; however, the rent shall be reduced
equitably to the amount of the Premises AND PARKING taken. In such an event,
Landlord shall make such repairs as may be necessary as soon as the same can be
reasonably accomplished. Such termination, however, shall be without prejudice
to the rights of either Landlord or Tenant, or both, to recover compensation and
damage caused by condemnation from the condemnor. It is further understood and
agreed that neither the Tenant nor Landlord shall have any rights in any award
made to the other by any condemnation authority.

      Any minor condemnation or taking of the Premises for the construction or
maintenance of streets or highways shall not be considered a condemnation or
taking for the purposes of this Section 18 so long as the Premises shall not be
materially or adversely affected, ingress and egress for the remainder of the
Premises shall be adequate for the business of Tenant, and the provisions of any
loan documents of Landlord's lender which encumber the Premises are complied
with.

19.   RIGHT OF LANDLORD TO ENTER; "FOR RENT" SIGNS: The Tenant agrees that the
Landlord or its agents may at all reasonable times AFTER REASONABLE NOTICE,
EXCEPT IN CASE OF EMERGENCY, enter upon the Premises for the purpose of
inspection or repair of the Building or the building systems and such other
purposes as Landlord may deem necessary or proper for the reasonable protection
of Landlord's interest in the Premises. In addition, the Landlord may enter the
Premises at all reasonable times, AFTER REASONABLE NOTICE, to exhibit the
Premises to prospective purchasers. During the two (2) months immediately
preceding the final expiration of the term created hereunder or any renewal
thereof, the Landlord, may exhibit the Premises to prospective tenants and/or
affix a notice that the premises are for rent; such notice shall not be greater
than four (4) square feet in area, and shall be affixed to a suitable part
thereof, exclusive of doors and windows and so as not to obstruct the Tenant's
signs.

20.   TAXES: Landlord agrees to pay before they become delinquent all taxes,
assessments and governmental charges of any kind and nature whatsoever
(hereinafter referred to as "taxes") lawfully levied or assessed against the
Building and the grounds, parking areas, driveways and alleys around the
Building and the grounds, parking areas, driveways and alleys around the
Building, except any taxes attributable to the operation of Tenant's business or
Tenant's property.

      If at any time during the term of this Lease, the present method of
taxation shall be changed so that in lieu of the whole or any part of any taxes,
assessments or governmental charges levied, assessed or imposed on real estate
and the improvements thereof, there shall be levied, assessed or imposed on
Landlord a capital levy or other tax directly on the rents received therefrom
and/or a franchise tax, assessment levy or charge measured by or based, in whole
or in part, upon such rents for the present or any future building or building
on the Premises, then all such taxes, assessments, levies or charges, or the
part thereof so measured or based, shall be deemed to be included with the term
"taxes" for the purposes hereof.

      Tenant shall pay to Landlord its proportionate share of the entire cost of
all taxes referenced herein. Tenant's proportionate share shall be the relation
of Tenant's 32,000 rentable square foot area to the 86,400 rentable square feet
of total building area, or 37.04%, SUBJECT TO ADJUSTMENT IF COMMON AREA IS
CONVERTED TO BUILDING AREA. Real estate taxes, as referenced herein, shall be
defined as the amount of the total tax invoice (property assessment x tax rate)
and shall exclude any discount or late penalty charge and shall include any
charge or fee incurred by Landlord as a result of its reasonable attempt in
securing a reduction in the assessed value of the Property.

      During the term hereof, Landlord shall notify Tenant of its proportionate
share due for such cost. Landlord shall have the option through the Lease term
to require Tenant's reimbursement on either a monthly, quarterly, or annual
basis, at Landlord's sole discretion, to become due and payable as additional
rent within ten (10) days, if invoiced monthly or thirty (30) days, if invoiced
quarterly or annually from the date of invoice. TENANT SHALL PAY TO LANDLORD A
MONTHLY AMOUNT EQUAL TO FOUR HUNDRED FIFTY THREE DOLLARS AND 33/1 00 ($453.33).
THIS ESTIMATED AMOUNT SHALL COVER THE COST OF TAX EXPENSES, WHICH WILL BE
TRUED-UP AT THE END OF EACH CALENDAR YEAR.

21.   TENANT'S COMPLIANCE; INSURANCE REQUIREMENTS. Tenant, IN ITS USE OF THE
PREMISES, shall comply with all applicable laws, ordinances and regulations
affecting the Premises, now existing or hereafter adopted, including the Rules
and Regulations.

<PAGE>

      Throughout the Term, Tenant, at its sole cost and expense, shall keep or
cause to be kept for the mutual benefit of Landlord, Landlord's managing agent,
(presently Highwoods Realty Limited Partnership and its affiliates (THOSE WHO
HAVE OWNERSHIP INTEREST IN THE BUILDING)) and Tenant, Commercial General
Liability Insurance (1986 ISO Form or its equivalent) with a combined single
limit, each Occurrence and General Aggregate-per location of at least TWO
MILLION DOLLARS ($2,000,000), which policy shall insure against liability of
Tenant, arising out of and in connection with Tenant's use of the Premises, and
which shall insure the indemnity provisions contained herein. Not more
frequently than once every three (3) years, Landlord may require the limits to
be increased if in its reasonable judgment (or that of its mortgagee) the
coverage is insufficient. Tenant shall also carry the equivalent of ISO Special
Form Property Insurance on its personal property and fixtures located in the
Premises and any improvements made by Tenant for their full replacement value
and with coinsurance waived, and Tenant shall neither have, nor make, any claim
against Landlord for any loss or damage to the same, regardless of the cause
thereof.

      Prior to taking possession of the Premises, and annually thereafter,
Tenant shall deliver to Landlord certificates or other evidence of insurance
satisfactory to Landlord. All such policies shall be non-assessable and shall
contain language to the extent obtainable that: (i) any loss shall be payable
notwithstanding any act or negligence of Landlord or Tenant that might otherwise
result in forfeiture of the insurance, (ii) that the policies are primary and
non-contributing with any insurance that Landlord may carry, and (iii) that the
policies cannot be canceled, non-renewed, or coverage reduced except after
thirty (30) days' prior written notice to Landlord. If Tenant fails to provide
Landlord with such certificates or other evidence of insurance coverage,
Landlord may obtain such coverage and Tenant shall reimburse the cost thereof on
demand.

      Anything in this Lease to the contrary notwithstanding, Landlord hereby
releases and waives unto Tenant (including all partners, stockholders, officers,
directors, employees and agents thereof), its successors and assigns, and Tenant
hereby releases and waives unto Landlord (including all partners, stockholders,
officers, directors, employees and agents thereof), its successors and assigns,
all rights to claim damages for any injury, loss, cost or damage to persons or
to the Premises or any other casualty, as long as the amount of which injury,
loss, cost or damage has been paid either to Landlord, Tenant, or any other
person, firm or corporation, under the terms of any Property, General Liability,
or other policy of insurance, to the extent such releases or waivers are
permitted under applicable law. As respects all policies of insurance carried or
maintained pursuant to this Lease and to the extent permitted under such
policies, Tenant and Landlord each waive the insurance carriers' rights of
subrogation. Subject to the foregoing, Tenant shall indemnify and hold Landlord
harmless from and against any and all claims arising out of (i) Tenant's use of
the Premises or any part thereof, (ii) any activity, work, or other thing done,
permitted or suffered by Tenant in or about the Premises or the Building, or any
part thereof, (iii) any breach or default by Tenant in the performance of any of
its obligations under this Lease, or (iv) any act or negligence of Tenant, or
any officer, agent, employee, contractor, servant, invitee or guest of Tenant;
and in each case from and against any and all damages, losses, liabilities,
lawsuits, costs and expenses (including attorneys' fees at all tribunal levels)
arising in connection with any such claim or claims as described in (i) through
(iv) above, or any action brought thereon.

      If such action is brought against Landlord, Tenant upon notice from
Landlord shall defend the same through counsel selected by Tenant's insurer, or
other counsel REASONABLY acceptable to Landlord. Tenant assumes all risk of
damage or loss to its property or injury or death to persons in, on, or about
the Premises, from all causes except those for which the law imposes liability
on Landlord regardless of any attempted waiver thereof, and Tenant hereby waives
such claims in respect thereof against Landlord, EXCEPT TO THE EXTENT ARISING
OUT OF THE NEGLIGENCE OR WILLFUL MISCONDUCT OF LANDLORD, ITS AGENTS, EMPLOYEES,
CONTRACTORS, ETC. The provisions of this paragraph shall survive the termination
of this Lease.

      Landlord shall keep the Building, including the improvements, insured
against damage and destruction by perils insured by the equivalent of ISO
Special Form Property Insurance in the amount of the full replacement value of
the Building.

      Each party shall keep its personal property and trade fixtures in the
Premises and Building insured with the equivalent of ISO Special Form Property
Insurance in the amount of the full replacement cost of the property and
fixtures. Tenant shall also keep any non-standard improvements made to the
Premises at Tenant's request insured to the same degree as Tenant's personal
property.

      Tenant's insurance policies required by this Lease shall: (i) be issued by
insurance companies licensed to do business in the state in which the Premises
are located with a general policyholder's ratings of at least A- and a financial
rating of at least VI in the most current Best's Insurance Reports available on
the Commencement Date, or if the Best's ratings are changed or discontinued, the
parties shall agree to a comparable method of rating insurance companies; (ii)
name the non-procuring party as an additional insured as its interest may appear
[other landlords or tenants may be added as additional insureds in a blanket
policy]; (iii) provide that the insurance not be canceled, non-renewed or
coverage materially reduced unless thirty (30) days advance notice is given to
the non-procuring party; (iv) be primary policies; (v) provide that any loss
shall be payable notwithstanding any gross negligence of Landlord or Tenant
which might result in a

<PAGE>

forfeiture thereunder of such insurance or the amount of proceeds payable; (vi)
have no deductible exceeding TEN THOUSAND DOLLARS ($10,000), unless accepted in
writing by Landlord; and (vii) be maintained during the entire Term and any
extension terms.

      Tenant agrees to pay to the Landlord its proportionate share of the entire
cost that Landlord may incur in the cost of maintaining the policies required
hereunder. Tenant's proportionate share shall be the relation of Tenant's 32,000
rentable square foot area to the 86,400 rentable square feet of total building
area, or 37.04%, SUBJECT TO ADJUSTMENT IF COMMON AREA IS CONVERTED TO BUILDING
AREA.

      During the term hereof, Landlord shall notify Tenant of its proportionate
share due for such cost. Landlord shall have the option through the Lease term
to require Tenant's reimbursement on either a monthly, quarterly or annual
basis, at Landlord's sole discretion, to become due and payable as additional
rent within ten (10) days, if invoiced monthly or thirty (30) days if invoiced
quarterly or annually from the date of invoice. TENANT SHALL PAY TO LANDLORD A
MONTHLY AMOUNT EQUAL TO FIFTY THREE DOLLARS AND 33/100 ($53.33). THIS ESTIMATED
AMOUNT SHALL COVER THE COST OF INSURANCE EXPENSES, WHICH WILL BE TRUED-UP AT THE
END OF EACH CALENDAR YEAR.

22.   DAMAGE AND DESTRUCTION: In the event the Premises are damaged by any peril
covered by standard policies of fire and extended coverage insurance AND ISO
SPECIAL FORM INSURANCE to an extent which is less than fifty percent (50%) of
the cost of replacement of the Premises, the damage to that portion of the
Premises which Landlord is obligated to insure pursuant to the immediately
preceding Section hereof, shall promptly be repaired by Landlord, at Landlord's
expense, but in no event shall Landlord be required to repair or replace
Tenant's stock-in-trade, trade fixtures, furniture, furnishings, special
equipment and other items of construction and personal property which Tenant is
required to insure pursuant to the immediately preceding Section hereof. In the
event of such damage and (a) Landlord is not required to repair as provided
herein, or (b) the Premises are damaged to the extent of fifty percent (50%) or
more of the cost of replacement of the Premises, or (c) the Building is damaged
to the extent of fifty percent (50%) or more of the cost of replacement, or (d)
such damage is twenty-five percent (25%) or more of the cost of replacement of
the Premises and the same occurs during the last year of the initial term or any
extensions or renewal terms of this Lease, then, in any such event(s), Landlord
may elect either to repair or rebuild the Premises or the Building of which the
Premises are a part, as the case may be, or to terminate this Lease upon giving
notice of such election, in writing, to Tenant within ninety (90) days after the
happening of the event causing such damage.

      If such damage, repairing or rebuilding shall render the Premises
untenantable, in whole or in part, a proportionate abatement of the rent and
additional rent stipulated herein shall be allowed from the date such damage
occurred until the date Landlord completes the repairs or rebuilding, said
proportion to be BASED ON THE DEGREE TO WHICH TENANT'S USE OF THE PREMISES IS
IMPAIRED. If Landlord is required or elects to repair the Premises as provided
herein, Tenant shall repair its floor and wall covering s which Tenant is
obligated to insure pursuant to the terms hereof, in a manner and to at least a
condition equal to that prior to such damage or destruction; in addition, Tenant
shall repair or replace its stock-in-trade, trade fixtures, furniture,
furnishings, special equipment and other items of construction and personal
property which tenant is required to insure pursuant to this Lease in a manner
and to a condition Tenant deems appropriate and adequate for the conduct of its
business within the Premises. In addition, Tenant is hereby given the sole
option to terminate this Lease in the event the repairing or rebuilding to be
effected by Landlord and required hereunder cannot be completed within one
hundred twenty (120) days from the date of the occurrence of the damage and
destruction.

23.   LIABILITIES OF THE PARTIES: Landlord and Tenant WAIVE all claims against
THE OTHER for damages to goods or for injuries to persons on or about the
Premises or common areas from any cause arising at any time other than damages
or injuries directly resulting from EITHER PARTY'S negligence OR WILLFUL
MISCONDUCT. The LANDLORD AND Tenant will indemnify THE OTHER on account of any
damage or injury to any persons, or to the goods of any person, arising from the
use of the Premises by the OTHER PARTY, or arising form the failure of THE OTHER
PARTY to keep the Premises in good condition as provided herein, IN EITHER CASE
EXCEPT TO THE EXTENT CAUSED BY LANDLORD'S OR TENANT'S NEGLIGENCE OR WILLFUL
MISCONDUCT. The Landlord AND TENANT shall not be liable to the other party for
any damage by or from any act or negligence of any UNAFFILIATED occupant of the
same Building, or by any UNAFFILIATED owner or occupant of adjoining or
contiguous property.

      The Tenant agrees to pay for all damages to the Building, as well as all
damage or injuries suffered by Tenant or occupants thereof, caused by misuse or
neglect of the Premises by the Tenant IN VIOLATION OF THE TERMS OF THIS LEASE.

      Landlord is specifically not responsible under any circumstance for any
damage to any computer, computer component, or computer peripheral, hardware or
software damaged by any interruption, usage or variation for whatever reason in
the electrical distribution system in the building, EXCEPT TO THE EXTENT CAUSED
BY LANDLORD'S NEGLIGENCE OR

<PAGE>

WILLFUL MISCONDUCT.

      Notwithstanding any other term or provision herein contained, it is
specifically understood and agreed that there shall be no personal liability of
Landlord (nor Landlord's agent, if any) in respect to any of the covenants,
conditions or provisions of this Lease. In the event of a breach or default by
Landlord of any of its obligations under this Lease, Tenant shall look solely to
the equity of the Landlord in the property for the satisfaction of Tenant's
remedies.

24.   PARKING: The Landlord warrants that it will, without charge and throughout
the term of this Lease and any extensions or renewals thereof, provide the
Tenant with NO FEWER THAN ONE AND ONE-HALF (1.5) PER ONE THOUSAND (1,000) SQUARE
FEET LEASED OF UNRESERVED parking SPACES ON THE PROPERTY around the demised
Premises which complies with applicable city or county code. Tenant agrees to
comply with the parking rules contained in the Parking Rules and Regulations
attached hereto as Exhibit "E" together with all reasonable modifications and
additions thereto which Landlord may from time to time make.

25.   SIGNS: Landlord hereby agrees to allow Tenant to have a lighted or
spot-lighted sign, as long as such sign complies with standard building
finishes. Said sign shall be at the sole expense of the Tenant. SEE EXHIBIT "F".

26.   UTILITIES: Landlord will provide utility service connections to the
Premises, including electrical service, natural gas (where available), water and
sewer. The Tenant shall pay directly for the use of (a) natural gas or other
fuels used to heat the Premises, (b) 120/208V electricity for heating air
conditioning and the lighting throughout the Premises used for operation of
Tenant's business. Tenant shall keep the Premises at a temperature sufficiently
high to prevent freezing of water in sprinkler system, pipes, and fixtures.

      Tenant will be responsible for the payment of charges for the use of water
and sewer, proportionate to its share of the total rentable square footage of
the Building, or 37.04%, SUBJECT TO ADJUSTMENT IF COMMON AREA IS CONVERTED TO
BUILDING AREA. LANDLORD WARRANTS THAT IN THE EVENT THAT EXCESSIVE USE BY ANY
TENANT IS DISCOVERED, LANDLORD AGREES TO METER THE TENANT IN QUESTION.

27.   HEAT, VENTILATION, AND CLIMATE CONTROL COMFORT: Landlord has installed
HVAC equipment to provide adequate comfort for normal user load requirements. If
determined before or during Tenant's occupancy that the Tenant's use of high
heat output equipment or other intensive uses (i.e.: computer rooms, telephone
rooms or work stations at greater density than five persons per 1,000 square
feet), requires additional cooling equipment, Landlord will install necessary
additional HVAC equipment at Tenant's sole expense.

28.   PLATE GLASS BREAKAGE: Notwithstanding anything herein to the contrary,
except by negligence of Landlord, Tenant shall be solely responsible for repair
and replacement in the event of plate glass damage or breakage.

29.   GARBAGE REMOVAL: Tenant will be responsible for providing a container for
garbage and arrange for its systematic pickup.

30.   JANITORIAL SERVICES: Tenant shall provide janitorial services and supplies
to the Premises, at its own expense.

31.   FIRE EXTINGUISHERS: Tenant covenants during the Term and such further time
as Tenant occupies any part of the Premises to keep the Premises equipped with
all safety appliances, INCLUDING but not limited to an operating fire
extinguisher, required by law or ordinance or any other regulation of any public
or private authority having jurisdiction over the Premises (including insurance
underwriters or rating bureaus) because of any use made by Tenant and to procure
all licenses and permits so required because of such use and, if required by
Landlord, to do any work so required because of such use, it being understood
that the foregoing provisions shall not be construed to broaden in any way
Tenant's permitted uses.

32.   EXTERMINATION: The Tenant shall, at its sole cost and expense, on A
REASONABLY FREQUENT basis, employ professional exterminators to control pests
within the Premises and supply Landlord with a copy of the contract therefor.

33.   STORING OF FLAMMABLE MATERIALS: The Tenant agrees that it shall not store
nor shall it use any dangerous and/or flammable chemical material(s) within or
around the Premises in a manner which violates any law or which may cause the
costs incurred by Landlord with respect to taxes and insurance regarding the
Premises to increase in which case Tenant shall bear the cost of any such
increase.

34.   REPLACEMENT OF LIGHT BULBS: Tenant shall, at its sole cost and expense,
replace all light bulbs within the

<PAGE>

Premises.

35.   KITCHEN APPLIANCES AND EQUIPMENT: In the event of installation of a
kitchen or kitchen equipment by either Landlord or Tenant, such maintenance and
repair of all items contained within the area shall be at the sole cost and
expense of Tenant, to include but not limited to: maintenance, repair and
replacement of a microwave oven, refrigerator, stove, ice maker, coffee maker,
garbage disposal, dishwasher, sink, faucet or any other item within the area.
Tenant hereby acknowledges to Landlord that any fixtures described herein are
NOT to become a part of the Premises.

36.   REMOVAL OF TENANT'S FIXTURES: NOTWITHSTANDING ANY OTHER PROVISION HEREOF,
THE Tenant shall have the privilege at any time, on or before vacating the
Premises, of removing any or all of its personal property, equipment and
fixtures, and Tenant shall repair any damage caused by the removal thereof and
shall leave the Premises in good and clean condition and repair.

37.   DEFAULT BY TENANT: In the event Tenant shall fail to pay the monthly
rental rate by TEN (10) DAYS AFTER the due date; or if Tenant is adjudicated a
bankrupt; or if Tenant files a petition in bankruptcy under any section or
provision of the bankruptcy law; or if an involuntary petition in bankruptcy is
filed against Tenant, and same is not withdrawn or dismissed within sixty (60)
days from filing thereof, or if a receiver or trustee is appointed for Tenant's
property and the order appointing such receiver or trustee remains in force for
SIXTY (60) days after the entry of such order; or if, whether voluntarily or
involuntarily, Tenant takes advantage of any debtor relief proceedings under any
present or future law, reduced payment thereof deferred; or if Tenant makes an
assignment for the benefit of the creditors; or if Tenant's effects shall be
levied upon or attached under process against Tenant, not satisfied or dissolved
within SIXTY (60) days after written notice from Landlord to Tenant to obtain
satisfaction thereof; or if Tenant shall abandon the Premises; or if Tenant
shall fail to perform or observe any other covenant, agreement, or condition to
be performed or kept by the Tenant under the terms and provisions of this Lease,
and such failure shall continue to thirty (30) days after written notice thereof
has been given by Landlord AND RECEIVED BY THE TENANT (OR SUCH LONGER PERIOD AS
MAY REASONABLY BE REQUIRED PROVIDED TENANT DILIGENTLY PROSECUTES SUCH CURE TO
COMPLETION); then in any one of such events, Landlord shall have the right, at
the option of the Landlord, then or at any time thereafter while such defaults
continue, to elect either: (1) to cure such default or defaults at the expense
of Tenant and without prejudice to any other remedies which it might otherwise
have, any payment made or expenses incurred by Landlord in curing such default
shall bear interest thereon at 18% per annum, or at such maximum legal rate as
permitted by North Carolina law, whichever shall be lower, to be and become
additional rent to be paid by Tenant with the next installment of rent falling
due thereafter; or (2) to re-enter the Premises and dispossess Tenant and anyone
claiming under Tenant, with or without an order of the court, and remove their
effects, and take complete possession of the Premises and then elect to take any
one or (to the extent not inconsistent) more of the following actions: (I)
declare this Lease forfeited and the term ended; or (ii) elect to continue this
Lease in full force and effect, but with the right at any time thereafter to
declare this Lease forfeited and the term ended; or (iii) declare Tenant's right
to possession of the Premises to be terminated; or (iv) exercise any other
remedies or maintain any action permitted to landlords pursuant to the laws of
the State of North Carolina, or any other applicable law. In such re-entry the
Landlord may, without committing trespass, have all persons and Tenant's
personal property removed from the Premises. Tenant hereby covenants in such
event for itself and all others occupying the Premises under Tenant; to
peacefully yield up and surrender the Premises to the Landlord. Should Landlord
declare either (I) this Lease forfeited and the term ended; (ii) the termination
of Tenant's right to possession of the Premises; then in any one such events,
Landlord shall be entitled to recover from Tenant the rental and all other sums
due and owing by Tenant to the date of termination, plus the costs of curing all
of Tenant's defaults existing at or prior to the date of termination, plus
rental for the balance of the term under this Lease less any rental obtained by
Landlord on another Lease for the balance of the term remaining under this
Lease. Should Landlord, following default as aforesaid, elect to continue this
Lease in full force, Landlord shall use its best efforts to rent the Premises by
private negotiations, with or without advertising, and on the best terms
available for the remainder of the term hereof, or for such longer or shorter
period as Landlord shall deem advisable. Tenant shall remain liable for payment
of all rentals and other charges and costs imposed on Tenant herein, in the
amounts, at the times and upon the conditions as herein provided, but Landlord
shall credit against such liability of the Tenant all amounts received by
Landlord from such re-letting after first reimbursing itself for all costs
incurred in curing Tenant's defaults and re-entering, preparing and refinishing
the Premises for re-letting, and the Premises, and for the payment of any
REASONABLE procurement fee and REASONABLE commission paid to obtain another
tenant, and for all REASONABLE attorney fees and legal costs incurred by
Landlord.

38.   RE-ENTRY BY LANDLORD: No re-entry by Landlord or any action brought by
Landlord to oust Tenant from the premises shall operate to terminate this Lease
unless Landlord shall give written notice of termination to Tenant, in which
event Tenant's liability shall be as above provided. No right or remedy granted
to Landlord herein is intended to be exclusive of any other right or remedy, and
each and every right and remedy herein provided shall be cumulative and in
addition to any other right or remedy hereunder or now or hereafter existing in
law or equity or by statute. In the event of termination of this Lease, Tenant
waives any and all rights to redeem the Premises either given by any statute now
in effect or hereafter

<PAGE>

enacted.

39.   WAIVER OF RIGHTS: No waiver by Landlord of any provision hereof shall be
deemed to be a waiver of any other provision hereof or of any subsequent breach
by Tenant of the same or any other provision. Landlord's consent to or approval
of any act shall not be deemed to render unnecessary the obtaining of Landlord's
consent to or approval of any subsequent act by Tenant. The acceptance of rent
hereunder by Landlord shall not be a waiver of any preceding breach by Tenant of
any provision hereof other than the failure of Tenant to pay the particular rent
as accepted regardless of Landlord's knowledge of said preceding breach at the
time of acceptance of such rent.

40.   SECURITY DEPOSIT: Tenant shall deposit with Landlord the sum of TEN
THOUSAND FIVE HUNDRED EIGHTY SIX DOLLARS AND 67/100 ($10,586.67), to be held by
Landlord as security for Tenant's satisfactory performance of the terms,
covenants and conditions of this Lease including the payment of Basic Rent
(either pro-rated or entire month) and Late Payment of Rent Charges (as
specified in Section 6 herein). A SUM OF FIVE THOUSAND TWO HUNDRED NINETY THREE
DOLLARS AND 33/100 (5,293.33) WILL BE RETURNED TO TENANT AFTER YEAR TWO (2) OF
THIS LEASE, AND LANDLORD SHALL RETAIN THE BALANCE OF FIVE THOUSAND TWO HUNDRED
NINETY THREE DOLLARS AND 34/100 ($5,293.34) TO BE HELD AS SECURITY DEPOSIT FOR
THE REMAINDER OF THE TERM OF THIS LEASE.

      (a)   Application of Security Deposit. Landlord may use, apply or retain
the whole or any part of the security so deposited to the extent required for
payment of any Basic Rent (pro-rated or entire month), Additional Rent or Late
Payment of Rent Charges or any other sum as to which Tenant is in default or for
any sum which Landlord may expend or may be required to expend by reason of
Tenant's default in respect of any of the terms, covenants and conditions of
this Lease including any damages or deficiency in the reletting of the demised
premises or other reentry by Landlord.

      (b)   Replenishment of Security Deposit. If Landlord uses, applies or
retains the whole or any part of the security, Tenant shall replenish the
security to its sum of FIVE THOUSAND TWO HUNDRED NINETY THREE DOLLARS AND 34/100
($5,293.34) within five (5) days after being notified by the Landlord of the
amount due. Tenant shall be in default of this Lease if the amount due is not
paid within the required period of time.

      (c)   Transfer of Property. In the event of a sale or leasing of the Real
Property or any part thereof, of which the demised premises form a part,
Landlord shall have the right to transfer the security to the vendee or lessees
and Landlord shall ipso facto be released by Tenant from all liability for the
return of said security; and Tenant agrees to look solely to the new Landlord
for the return of said security (PROVIDED SUCH NEW LANDLORD HAS, AT THE TIME OF
TRANSFER, A LIQUID NET WORTH EQUAL TO OR GREATER THAN LANDLORD'S); and it is
agreed that the provisions hereof shall apply to every transfer of assignment
made of the security to a new landlord.

      (d)   Prohibition on Tenant Assignment. Tenant covenants that it shall not
assign or encumber the security deposit given to Landlord pursuant to this
Lease. Neither Landlord, its successors or assigns shall be bound by any such
assignment of encumbrance or any attempted assignment or encumbrance BY TENANT
OF THE SECURITY DEPOSIT.

      (e)   When Returned. In the event that Tenant shall fully and faithfully
comply with all the terms, covenants and conditions of this Lease, any part of
the security not used or retained by Landlord shall be returned to Tenant after
the Expiration Date of the Lease and inspection and approval of the Premises by
Landlord, normal wear and tear excepted and after delivery of exclusive
possession of the demised premises to Landlord.

41.   NOTICES: All notices provided for herein shall be in writing and shall be
deemed to have been given WHEN RECEIVED AFTER BEING deposited in the United
States mails, postage fully prepaid, and directed to the parties hereto at their
respective addresses given below:

      Landlord:     Notices only:       HIGHWOODS REALTY LIMITED PARTNERSHIP
                                        380 Knollwood Street, Suite 430
                                        Winston-Salem, North Carolina 27103

      Landlord:     Payments only:      HIGHWOODS REALTY LIMITED PARTNERSHIP
                                        P.O. Box 65195
                                        Charlotte, North Carolina 28265-0195

      TENANT:                           BIRTHDAY EXPRESS.COM, INC.
                                        488 GALLIMORE DAIRY ROAD, SUITE D
                                        GREENSBORO, NORTH CAROLINA 27409

<PAGE>

      Notices:                          11220 120th Avenue, N.E.
                                        Kirkland, Washington 98033
                                        Attn:  Mike Jewell, President

      With a Copy To:                   Cooley Godward, L.L.P.
                                        5200 Carillon Point
                                        Kirkland, WA 98033-7356
                                        Attn: Kevin Austin

      Either party may, in addition, deliver written notice by hand delivery OR
FEDERAL EXPRESS. Further, the parties hereto may give or receive notice by or
from their respective attorneys and may, by like notice, designate a new address
to which subsequent notice shall be directed.

42.   COMPLIANCE WITH LAWS: In addition to other provisions herein, Tenant shall
promptly execute and comply with all laws, ordinances, rules, regulations and
requirements of any or all federal, state and municipal authorities having
jurisdiction over the manner in which the Tenant's business is conducted, but
only insofar as these laws, ordinances, rules and regulations and requirements
are violated by the conduct of Tenant's business.

43.   RULES AND REGULATIONS: Tenant, its agents, servants and invitees shall
observe faithfully and comply with the rules and regulations set forth on the
schedule designated BUILDING RULES AND REGULATIONS, attached hereto as Exhibit
"C" and by this reference made a part hereof. Landlord shall have the right,
from time to time, during the term of this Lease to make reasonable changes in,
and additions to, said rules and regulations, provided such changes and
additions do not unreasonably affect the conduct of Tenant's business in the
Premises. Any failure by Landlord to enforce any said rules and regulations now
or hereafter in effect, either against Tenant or any other tenant in the
Building, shall not constitute a waiver of such rules and regulations. The
defined words in this Lease, whenever used in said rules and regulations, shall
have the same meanings as herein.

44.   HAZARDOUS WASTE: As used in this agreement, "Hazardous Waste' shall mean
any hazardous or toxic substance, material, water or similar term which is
regulated by local authorities, the State of North Carolina or the United States
of America, including, but not limited to, any material, substance, waster or
similar term which is (i) defined as a hazardous material under the laws of the
State of North Carolina; (ii) defined as a hazardous substance under Section 311
of the Federal Water Pollution Control act (33 U.S.C. Section 1317); (iii)
defined as a hazardous waste under Section 1004 of the Federal Resource
Conservation and Recovery Act (42 U.S.C. Section 6901 et. sez.); (iv) defined as
a hazardous waster substance under Section 101 of the Comprehensive
Environmental Response, Compensation and Liability Act, (42 U.S.C. Section 9601
et. sez.); (v) defined as a hazardous waste or toxic substance, waste, material
or similar term in rules and regulations, as amended from time to time, which
are adopted by any administrative agency including, but not limited to, the
Environmental Protection Agency, the Occupational Safety and Health
Administration, and any such similar local, state or federal agency having
jurisdiction over the Premises whether or not such rules and regulations have
the force of law; (vi) defined as a hazardous or toxic waste, substance,
material or similar term in any statute, regulation, rule or law enacted or
adopted at any time after the date of this agreement by local authorities, the
State of North Carolina, or the federal government.

      The Tenant shall not cause or permit ITS INVITEES OR EMPLOYEES, TO CAUSE,
the discharge from the Premises of any hazardous material, and the Tenant shall
immediately notify the Landlord of the existence of any hazardous material
discovered on the Premises, whether placed there by spill, release, discharge,
disposal or storage.

      The Tenant shall promptly pay, discharge, or remove any claim, charge or
lien upon the Premises, and shall indemnify and hold harmless the Landlord, from
any and all loss, damage or expense resulting from such Hazardous Waste THE
EXISTENCE OF WHICH IS CAUSED BY TENANT.

      This indemnification of Landlord by Tenant includes, without limitation,
costs incurred in connection with any investigation of site conditions or any
clean-up, remedial, removal or restoration work required by and federal, state
or local governmental agency or political subdivision because of hazardous
material present in the soil or ground water on or under the Premises. Without
limiting the foregoing, if the presence of any hazardous material on the
Premises and Building caused by Tenant OR ITS INVITEES OR EMPLOYEES results in
the contamination of the Premises or Building, Tenant shall promptly take all
actions at its sole expense, as are necessary to return the same to the
condition existing prior to the introduction of any such hazardous material
thereto; provided that Landlord's approval of such actions shall first be
obtained, which approval shall not be unreasonably withheld so long as such
actions would not potentially have any material adverse long-term or short-term
effect on the Premises and Building. The foregoing indemnity shall survive the
expiration or earlier termination of this Lease.

<PAGE>

      Landlord reserves the right, AT ITS SOLE EXPENSE, to inspect the Premises
from time to time, but no more than twice a year, for the existence of Hazardous
Waste. IF DISCOVERED, Tenant shall be responsible for , all costs associated
with the immediate clean up and/or disposal of such Hazardous Waste, WHEN THE
EXISTENCE OF WHICH IS CAUSED BY TENANT.

45.   SURRENDER: Thirty (30) days prior to the termination of this Lease or any
extension or renewal hereof, Tenant shall notify Landlord in writing of the day
it intends to vacate the Premises together with a forwarding address and
telephone number. The Tenant shall surrender the Premises in good and clean
condition and repair, excepting only normal wear and tear and damage by fire or
other casualty damage covered by insurance and paid to Landlord. Tenant shall
not remain in the Premises without the benefit of a written Lease or renewal
agreement executed by the parties hereto prior to the expiration of the then
existing term. No other holding over of the Premises shall be allowed on any
basis whatsoever.

      The delivery of keys or other such tender of possession of the Premises to
Landlord or to an employee of Landlord shall not operate as a termination of
this Lease or a surrender of the Premises.

      Any pro-rated rent or damages in excess of the security deposit held by
Landlord shall be invoiced by Landlord and payable by Tenant within ten (10)
days from the date of invoice, BUT SHALL STILL BE SUBJECT TO AUDIT.

46.   HOLDOVER: In the event Tenant remains in possession of the leased premises
after the expiration of the term of this Lease, without having first extended
this Lease by written agreement with Landlord, such holding over shall not be
construed as a renewal or extension of this Lease. Such holding over shall be
deemed to have created and be construed as tenancy from month to month,
terminable on 30 days notice in writing from either party to the other. The
monthly rental to be paid shall be 150% of the monthly rental payable during the
last month of the term of this Lease. All other terms and conditions of this
Lease shall continue to be applicable for both Landlord and Tenant.

      If Tenant fails to surrender the Premises to Landlord on expiration of the
term as required by this Section, Tenant shall hold Landlord harmless from all
damages resulting from Tenant's failure to surrender the Premises, including
without limitation, claims made by the succeeding Tenant resulting from Tenant's
failure to surrender the Premises.

47.   LIENS: If Tenant shall cause any material to be furnished to the Premises
or labor to be performed thereon or therein, Landlord shall not under any
circumstances be liable for the payment of any expenses incurred or for the
value of any work done or material furnished. All such work shall be at Tenant's
expense and Tenant shall be solely and wholly responsible to all contractors,
laborers, and materialmen furnishing labor and material to the Premises. Nothing
herein shall authorize the Tenant or any person dealing through, with or under
Tenant to charge the Premises or any interest of the Landlord therein or this
Lease with any mechanic's liens or other liens or encumbrances whatsoever. On
the contrary, (and notice is hereby given) the right and power to charge any
lien or encumbrance of any kind against the Landlord or its estate is hereby
expressly denied.

48.   BENEFITS, BURDENS AND ENTIRE AGREEMENT: This Lease is binding on and
benefits the parties hereto and their respective heirs, legal representatives,
successors, nominees and assigns. Throughout this agreement the masculine
gender shall be deemed to include the feminine, the feminine the masculine, the
singular the plural and the plural the singular.

      This Lease, AND ALL EXHIBITS, contains the entire agreement between the
parties hereto with respect to the Premises leased hereunder; further, this
Lease may not be modified, altered or amended except by an instrument in
writing, executed by the parties hereto or their respective heirs, legal
representatives, successors, nominees or assigns and which instrument shall be
attached hereto as an amendment to this Lease and shall thereby become a part
hereof.

49.   ATTORNEY'S FEES: If either Landlord or Tenant files an action to enforce
any agreement contained in this Lease, or for breach of any covenant or
condition, the prevailing party in any such action, or the party settling to its
benefit, shall be reimbursed by the other party for reasonable attorneys' fees
in the action.

50.   GOVERNING LAW: This Lease shall be governed by and construed under the
laws of the State of North Carolina.

51.   ESTOPPEL CERTIFICATES: Tenant shall execute and deliver to Landlord, upon
its occupancy of the Premises, a certificate/statement provided by Landlord,
certifying that this Lease is unmodified and in full force and effect and other

<PAGE>

factual data relating to the Lease or the Premises which Landlord may reasonably
request. Furthermore, EITHER PARTY may be required, from time to time during the
term of the Lease, to execute and deliver to THE OTHER PARTY a
certificate/statement for purposes of refinancing, syndication, sale of
property, etc. In such event, SUCH PARTY shall have ten (10) days from its
receipt thereof from Landlord to execute and deliver such fully executed
certificate/statement to THE OTHER PARTY. A PARTY'S failure to execute said
certificate shall constitute a default hereunder.

53.   CHRONIC DEFAULTS: Tenant will be in "Chronic Default" under this Lease if
Tenant commits a default (either a Monetary or Non-Monetary Default) during any
365-day period in which any of the following combinations of default has already
occurred :

      (1)   Two Monetary Defaults; or

      (2)   Three Non-Monetary Defaults; or

      (3)   One Monetary Default and two Non-Monetary Defaults

      (a)   Remedies. If Tenant is in Chronic Default, Landlord may immediately
exercise any or all remedies available under this Lease or at law or in equity,
all without giving Tenant any notice or an opportunity to cure the last default
causing Tenant's Chronic Default (notwithstanding any notice and cure provision
or other lease provision to the contrary).

      (b)   Definitions. For the purpose of this Section, (1) a Monetary Default
occurs if Tenant fails to pay any sum of money when due (including, but not
limited to, Base Rent, Additional Rent, Percentage Rent, Escalation Rent, Common
Area Maintenance Charges, Utility Charges, Pass-thru Expenses, or other Rent);
(2) a Non-Monetary Default occurs if Tenant fails to perform any of its
obligations under this Lease other than the timely payment of money.

54.   EVIDENCE OF AUTHORITY: If requested by Landlord, Tenant shall furnish
appropriate legal documentation evidencing the valid existence and good standing
of Tenant and the authority of any parties signing this Lease to act for Tenant.
If Tenant signs as a corporation, each of the persons executing this Lease on
behalf of Tenant does hereby covenant and warrant that Tenant is a duly
authorized and existing corporation, that Tenant has and is qualified to do
business in North Carolina, that the corporation has full right and authority to
enter into this Lease and that each of the persons signing on behalf of the
corporation is authorized to do so.

55.   LEASE REVIEW; DATE OF EXECUTION: The submission of this Lease to Tenant
for review does not constitute a reservation of or option for the Premises, and
this Lease shall become effective as a contract only upon execution and delivery
by both Landlord and Tenant. The date of execution shall be entered on the top
of the first page of this Lease by Landlord, ON THE DATE THAT LANDLORD EXECUTES
THIS LEASE, and shall be the date on which the last party signed the Lease, or
as otherwise may be specifically agreed by both parties. Such date, once
inserted, shall be established as the final date of ratification by all parties
to this Lease, and shall be the date for use throughout this Lease as the "date
of execution' or "execution date".

56.   OPTION TO TERMINATE: PROVIDED TENANT IS NOT IN DEFAULT HEREUNDER, TENANT
SHALL HAVE THE OPTION TO TERMINATE THIS LEASE ON THE THIRD ANNIVERSARY OF THE
COMMENCEMENT DATE, UPON A PRIOR ONE HUNDRED TWENTY (120) DAY WRITTEN NOTICE TO
LANDLORD AND A PAYMENT TO LANDLORD OF FOUR (4) MONTHS RENT AND UNAMORTIZED
TENANT IMPROVEMENTS TOTALING FORTY THOUSAND DOLLARS AND 00/100 ($40,000.00).

57.   RIGHT TO RELOCATE: PROVIDED TENANT IS NOT IN DEFAULT HEREUNDER, TENANT
SHALL HAVE THE RIGHT TO RELOCATE TO OTHER AVAILABLE PROPERTIES (I.E., NOT UNDER
LEASE TO OTHER TENANTS) OWNED BY HIGHWOODS, OR ITS AFFILIATES, AT LEAST TWENTY
FIVE PERCENT (25%) GREATER IN SIZE, WITHOUT PENALTY, PROVIDING A PRIOR NINETY
(90) DAY WRITTEN NOTICE OF ITS INTENT TO RELOCATE. THE ECONOMIC TERMS PURSUANT
TO WHICH THE RELOCATION SPACE WILL BE LEASED SHALL BE SUBJECT TO MUTUAL
AGREEMENT, FAILING WHICH THE NOTICE OF INTENT TO RELOCATE WILL BE DEEMED
RESCINDED. THE OTHER LEASE TERMS SHALL BE SUBSTANTIALLY THE SAME AS SET FORTH IN
THIS LEASE.

58.   FIRST RIGHT OF REFUSAL: PROVIDED TENANT IS NOT IN DEFAULT HEREUNDER,
TENANT SHALL HAVE A FIRST RIGHT OF REFUSAL ON ALL CONTIGUOUS SPACE IN THE
BUILDING. TENANT SHALL HAVE FIVE (5) BUSINESS DAYS TO RESPOND IN WRITING AFTER
RECEIPT FROM LANDLORD OF A WRITTEN NOTICE OF THIRD PARTY-OFFER. TENANT'S FAILURE
TO AGREE IN WRITING WITHIN FIVE (5) BUSINESS DAYS, TO LEASE THE SPACE ON THE
SAME TERMS AS SET FORTH IN THE THIRD PARTY OFFER, SHALL NULLIFY ALL OF TENANT'S
RIGHTS TO THAT SPACE. TENANT WILL RETAIN A FIRST RIGHT OF REFUSAL ON ALL
CONTIGUOUS SPACE IN THE FUTURE, UPON

<PAGE>

AVAILABILITY WITHIN THE BUILDING.

59.   OPTION TO RENEW: PROVIDED TENANT IS NOT IN DEFAULT HEREUNDER, TENANT SHALL
HAVE TWO (2) OPTIONS TO RENEW THIS LEASE FOR A PERIOD OF FIVE (5) YEARS EACH,
UPON THE SAME TERMS AND CONDITIONS CONTAINED HEREIN, SAVE AND EXCEPT ANY OPTION
TO RENEW, AND UPON A RENTAL RATE EQUAL TO THE FAIR MARKET VALUE AT THE TIME OF
THE RENEWAL. TENANT SHALL PROVIDE LANDLORD NINETY (90) DAY PRIOR WRITTEN NOTICE
OF ITS INTENT TO EXERCISE SAID OPTION.

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Lease Agreement
or have caused their duly authorized representatives to execute same in two (2)
original counterparts, as of the day and year first above written.

                                         LANDLORD:
                                         HIGHWOODS REALTY LIMITED PARTNERSHIP, a
                                         North
                                         Carolina Limited Partnership
                                         By:  Highwoods Properties, Inc.,
                                              General Partner

                                         By: /s/ John O. Dunn III
                                            -----------------------------------
                                            VICE President

                                         TENANT:
                                         BIRTHDAY EXPRESS.COM, A WASHINGTON
                                         CORPORATION

                                         By: /s/ Gary Halpern
                                            -----------------------------------
                                             CFO<PAGE>

                                                                    EXHIBIT 10.6

North Carolina    )

                  )    FIRST AMENDMENT TO LEASE
Guilford County   )

      THIS FIRST AMENDMENT TO LEASE ("First Amendment"), is made and entered
into this day of _____________, 2004, by and between HIGHWOODS REALTY LIMITED
PARTNERSHIP, a North Carolina limited partnership, hereinafter referred to as
"Landlord" and BIRTHDAY EXPRESS.COM, INC., a Washington corporation hereinafter
referred to as "Tenant". Tenant leases from Landlord space in the amount of
approximately 32,000 rentable square feet known as Suite D (the "Premises"), in
the building (the "Building") located at 488 Gallimore Dairy Road, Greensboro,
North Carolina.

                              W I T N E S S E T H:

      WHEREAS, Landlord and Tenant entered into a Lease Agreement (the "Lease")
dated November 12, 1999;

      WHEREAS, Landlord and Tenant desire to amend the Lease to, among other
things, extend the Term of the Lease and modify the area of the Premises by an
expansion of the Premises into an additional 24,000 rentable square feet of
space (the "Expansion Space") in the Building;

      NOW THEREFORE, based on the mutual promises and covenants contained herein
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree to amend the Lease as
follows:

      1.    Recitals. The foregoing recitals are true and incorporated in this
First Amendment.

      2.    Definitions. Unless otherwise defined in this First Amendment, all
capitalized terms used in this First Amendment shall have the respective
meanings ascribed to them in the Lease.

      3.    Amendments. The Lease is hereby amended as follows:

            3.1   Term. The Term of the Lease is hereby extended such that the
                  Term of the Lease (the "Base Term") shall expire on August
                  31st, 2007 (the "Amended Expiration Date").

            3.2   Premises. Effective on and after September 1, 2004 (the
                  "Expansion Commencement Date") the Premises shall be deemed to
                  include the Expansion Space so that the Premises under the
                  Lease shall consist of 56,000 rentable square feet of space in
                  the Building as shown on Exhibit A attached hereto. Effective
                  on and after the Expansion Space Commencement Date: (i) any
                  and all references or calculations in the Lease involving the
                  number of rentable square feet in the Premises will be

<PAGE>

                  adjusted to reflect that the Premises consists of 56,000
                  rentable square feet; and (ii) all terms and conditions of the
                  Lease shall apply to the Expansion Space.

            3.3.  Tenant Improvements. Landlord shall, at its sole cost and
                  expense, provide a Tenant Improvement Allowance of up to
                  Twenty Thousand and 00/100 Dollars ($20,000.00) to design,
                  engineer, install, supply and otherwise to construct the
                  Tenant Improvements in the Expansion Space that will become a
                  part of the Building (the "Allowance"). The scope and
                  construction of such improvements shall be made pursuant to
                  the workletter attached hereto as "EXHIBIT B" (the
                  "Workletter").

            3.4.  Rent. Effective as of the Expansion Commencement Date, Tenant
                  shall pay Base Rent for the entire Premises (including the
                  Expansion Space) in accordance with the following Rent
                  Schedule:

<TABLE>
<CAPTION>
         MONTHS            MONTHLY RENT  CUMULATIVE RENT
         ------            ------------  ---------------
<S>                        <C>           <C>
 9/01/2004 -- 11/30/2004    $19,366.67     $ 58,100.00
12/01/2004 --  8/31/2005    $18,433.33     $165,900.00
 9/01/2005 --  8/31/2006    $18,993.33     $227,920.00
 9/01/2006 --  8/31/2007    $19,553.33     $215,086.63
</TABLE>

            3.5   Option to Terminate. Section 56 of the Lease Agreement is
                  hereby deleted in its entirety.

            3.6   Option to Renew. Section 59 of the Lease Agreement is hereby
                  amended to state that the Tenant shall have one (1) option to
                  renew the Lease for a period of three (3) years, and Tenant
                  shall give notice of exercise of such option to renew at least
                  one hundred twenty (120) days prior to the Amended Expiration
                  Date. Except to the extent modified hereby, all other
                  provisions of Section 59 shall remain in full force and
                  effect.

      4.    Amendment to Lease. The foregoing amends the Lease. Except as
specifically modified and amended by this First Amendment, all other terms and
conditions of the Lease shall remain in full force and effect.

      5.    Broker. Tenant represents and warrants that it has not dealt with
any real estate broker, and hold Landlord harmless from any and all damages
resulting from claims that may be asserted against Landlord by any other broker,
finder or other person (including, without limitation, any substitute or
replacement broker claiming to have been engaged by Tenant in the future),
claiming to have dealt with Tenant in connection with this First Amendment, or
any amendment or extension to the Lease, or which may result in Tenant leasing
other or enlarged space from Landlord.

<PAGE>

      6.    Landlord's Compliance. Tenant acknowledges that Landlord has
complied with all of its obligations under the Lease to date.

            First Right Of Refusal. Provided Tenant is not in default hereunder,
      Tenant shall have a First Right of Refusal on all contiguous space in the
      building. Tenant shall have (10) business days to respond in writing after
      receipt from Landlord of a written notice of third party offer. Tenant's
      failure to agree in writing within (10) business days, to lease the space
      on the same terms as set forth in the third party offer, shall nullify all
      of Tenant's rights to that space. Tenant will retain a First Right of
      Refusal on all contiguous space in the future, upon availability within
      the building.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this First Amendment
to Lease or have caused their duly authorized representatives to execute same in
four (4) original counterparts, as of the day and year first above written.

                                      LANDLORD:

                                      HIGHWOODS REALTY LIMITED
                                      PARTNERSHIP, a North Carolina Limited
                                      Partnership

                                      By: Highwoods Properties, Inc., a Maryland
                                          corporation, its General Partner

                                         By: /s/ Mark Shumaker
                                             __________________________________
                                              its  Vice President
                                         ______________________________________

                                      TENANT:

                                      CELEBRATE EXPRESS.  INC., a Washington
                                      corporation

                                      By: /s/ Michael K. Jewell
                                         ______________________________________
                                      Title:  CEO
                                            ___________________________________

                                      Printed Name: Michael K. Jewell
                                                   ____________________________

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