Document:

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                                                                   EXHIBIT 10.41

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE
OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO STAMPS.COM
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

Date of Issuance:  April 27, 1999, amended and restated in its entirety
                   March 7, 2000
Number of Shares:  658,986 of Common Stock

                                STAMPS.COM INC.

                         Common Stock Purchase Warrant
                         -----------------------------

     Stamps.com Inc., a Delaware corporation ("Stamps.com"), hereby certifies
                                               ----------
that Mail Boxes Etc. USA, Inc. ("MBE"), or its registered assigns (collectively
                                 ---
with MBE, the "Registered Holder"), is entitled, upon the terms and subject to
               -----------------
the conditions set forth below, to purchase from Stamps.com, as set forth in
Section 1, at a purchase price of $6.07 per share, subject to adjustment in
accordance with the terms hereof, up to 658,986 shares of Common Stock of
Stamps.com ("Common Stock") subject to adjustment in accordance with the terms
             ------------
hereof.  The shares of Common Stock purchasable upon exercise of this Warrant
and the purchase price per share, as adjusted from time to time pursuant to the
provisions of this Warrant, are hereinafter referred to as the "Warrant Stock"
                                                                -------------
and the "Purchase Price," respectively.
         --------------

     This Warrant is issued pursuant to that certain Manifest System Services
and Co-Branding Agreement (the "Agreement") dated as of April 27, 1999 and
                                ---------
amended March 7, 2000 between iShip.com, Inc., a Washington corporation and
wholly owned subsidiary of Stamps.com, and MBE.  The terms of this Warrant, as
amended, were assumed by Stamps.com pursuant to the Acquisition (as defined in
Amendment No. 1 to the Agreement dated March 7, 2000).

     1.   Exercise.
          --------

          (a)  Manner of Exercise.  This Warrant may be exercised by the
               ------------------
Registered Holder, in whole or in part, at any time during the period commencing
on March 7, 2000 and ending on the Expiration Date (as defined in Section 5) by
surrendering this Warrant, with the purchase form appended hereto as Exhibit A
                                                                     ---------
duly executed by such Registered Holder or by such Registered Holder's duly
authorized attorney, at the principal office of Stamps.com, or at such other
office or agency as Stamps.com may designate, accompanied by payment in full of
the Purchase Price payable in respect of the number of shares of Warrant Stock
purchased upon such exercise.  The Purchase Price may be paid by cash, check,
wire transfer or by the surrender of
<PAGE>

promissory notes or other instruments representing indebtedness of Stamps.com to
the Registered Holder.

          (b)  Effective Time of Exercise.  Each exercise of this Warrant shall
               --------------------------
be deemed to have been effected immediately prior to the close of business on
the day on which this Warrant shall have been surrendered to Stamps.com as
provided in Section 1(a) above.  At such time, the person or persons in whose
name or names any certificates for Warrant Stock shall be issuable upon such
exercise as provided in Section 1(d) below shall be deemed to have become the
holder or holders of record of the Warrant Stock represented by such
certificates.

          (c)  Net Issue Exercise.
               ------------------

               (i)   In lieu of exercising this Warrant in the manner provided
above in Section 1(a), the Registered Holder may elect to receive shares equal
to the value of this Warrant (or the portion thereof being canceled) by
surrender of this Warrant at the principal office of Stamps.com together with
notice of such election in which event Stamps.com shall issue to such Holder a
number of shares of Warrant Stock computed using the following formula:

               X =  Y (A - B)
                    ---------
                         A

Where     X =  The number of shares of Warrant Stock to be issued to the
               Registered Holder.

          Y =  The number of shares of Warrant Stock purchasable under this
               Warrant (at the date of such calculation).

          A =  The fair market value of one share of Warrant Stock (at the date
               of such calculation).

          B =  The Purchase Price (as adjusted to the date of such calculation).

               (ii)  For purposes of this Section 1(c), the fair market value of
Warrant Stock on the date of calculation shall mean with respect to each share
of Warrant Stock:

                     (A) if Stamps.com's Common Stock is traded on a securities
exchange or The Nasdaq Stock Market or actively traded over-the-counter:

                         (1) if Stamps.com's Common Stock is traded on a
securities exchange or The Nasdaq Stock Market, the fair market value shall be
deemed to be the product of (x) the average of the closing prices over a ten
(10) trading day period, which period shall begin twelve (12) trading days prior
to the effective time of exercise of this Warrant and end three (3) trading days
prior to the effective day of exercise of this Warrant (i.e., if the Warrant is
effectively exercised on April 27, 2000, the period shall begin on April 10,
2000 and run through April 24, 2000) and (y) the number of shares of Common
Stock into which each share of Warrant Stock is convertible on such date; or

                                      -2-
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                         (2) if Stamps.com's Common Stock is actively traded
over-the-counter, the fair market value shall be deemed to be the product of (x)
the average of the closing bid or sales price (whichever is applicable) over a
ten (10) trading day period, which period shall begin twelve (12) trading days
prior to the effective time of exercise of this Warrant and end three (3)
trading days prior to the effective day of exercise of this Warrant (i.e., if
the Warrant is effectively exercised on April 27, 2000, the period shall begin
on April 10, 2000 and run through April 24, 2000) and (y) the number of shares
of Common Stock into which each share of Warrant Stock is convertible on such
date; or

                     (B)  if (A)(1) nor (A)(2) is applicable, the fair market
value of Warrant Stock shall be at the highest price per share which Stamps.com
could obtain on the date of calculation from a willing buyer (not a current
employee or director) for shares of Warrant Stock sold by Stamps.com, from
authorized but unissued shares, as agreed by Stamps.com and the holders of a
majority of the Warrant Stock issuable upon exercise of this Warrant, unless
Stamps.com is at such time subject to an acquisition, in which case the fair
market value of Warrant Stock shall be deemed to be the value received by the
holders of such stock pursuant to such acquisition and shall be valued on a
basis consistent with such acquisition consideration.

          (d)  Delivery to Holder.  As soon as practicable after the exercise of
               ------------------
this Warrant in whole or in part, and in any event within ten (10) days
thereafter, Stamps.com at its expense will cause to be issued in the name of,
and delivered to, the Registered Holder, or as such Holder (upon payment by such
Holder of any applicable transfer taxes) may direct:

               (i)   a certificate or certificates for the number of shares of
Warrant Stock to which such Registered Holder shall be entitled, and

               (ii)  in case such exercise is in part only, a new warrant or
warrants (dated the date hereof) of like tenor, calling in the aggregate on the
face or faces thereof for the number of shares of Warrant Stock equal (without
giving effect to any adjustment therein) to the number of such shares called for
in the introductory paragraph to this Warrant minus the number of such shares
purchased by the Registered Holder upon such exercise as provided in Section
1(a) or 1(c) above.

     2.   Adjustments.
          -----------

          (a)  Stock Splits and Dividends. If outstanding shares of Stamps.com's
               --------------------------
Common Stock shall be subdivided into a greater number of shares or a dividend
in Common Stock shall be paid in respect of Common Stock, the Purchase Price in
effect immediately prior to such subdivision or at the record date of such
dividend shall simultaneously with the effectiveness of such subdivision or
immediately after the record date of such dividend be proportionately reduced.
If outstanding shares of Common Stock shall be combined into a smaller number of
shares, the Purchase Price in effect immediately prior to such combination
shall, simultaneously with the effectiveness of such combination, be
proportionately increased.  When any adjustment is required to be made in the
Purchase Price, the number of shares of Warrant Stock purchasable upon the
exercise of this Warrant shall be changed to the number determined by dividing
(i) an amount equal to the number of shares issuable upon the exercise of

                                      -3-
<PAGE>

this Warrant immediately prior to such adjustment, multiplied by the Purchase
Price in effect immediately prior to such adjustment, by (ii) the Purchase Price
in effect immediately after such adjustment.

          (b)  Reclassification, Consolidation, Merger Etc.  In case at any time
               --------------------------------------------
or from time to time, Stamps.com shall (i) effect a reorganization (other than a
combination, reclassification, exchange or subdivision of shares, as otherwise
provided for herein), (ii) consolidate with or merge into any other entity or
person, or (iii) transfer all or substantially all of its properties or assets
to any other entity or person including under any plan or arrangement
contemplating the dissolution of Stamps.com, then, in each such case, as a part
of such reorganization, merger, consolidation, sale or transfer, lawful
provision shall be made so that the Registered Holder, on the exercise hereof as
provided in Section 1 at any time after the consummation of such reorganization,
consolidation, merger, sale or transfer or the effective date of such
reorganization, consolidation, merger, sale or transfer, as the case may be,
shall be entitled to receive, in lieu of the Common Stock (or other securities)
issuable on such exercise prior to such consummation or such effective date, the
stock and other securities and property (including cash) to which the Holder
would have been entitled upon such consummation or in connection with such
dissolution, as the case may be, if the Holder had so exercised this Warrant,
immediately prior thereto, all subject to further adjustment thereafter as
provided in this Section 2. Upon any reorganization, consolidation, merger, or
other such transaction referred to in this Section 2(b) (collectively, a
"Corporate Transaction"), this Warrant shall, immediately after such Corporate
Transaction, be appropriately adjusted to apply and pertain to the number and
class of securities which would have been issued to the Holder in the
consummation of such Corporate Transaction had the option been exercised
immediately prior to such Corporate Transaction.  Appropriate adjustments shall
also be made to the Purchase Price, provided the aggregate Purchase Price
payable hereunder shall remain the same.

          (c)  Adjustment Certificate.  When any adjustment is required to be
               ----------------------
made in the Warrant Stock or the Purchase Price pursuant to this Section 2,
Stamps.com shall promptly mail to the Registered Holder a certificate setting
forth (i) a brief statement of the facts requiring such adjustment, (ii) the
Purchase Price after such adjustment and (iii) the kind and amount of stock or
other securities or property into which this Warrant shall be exercisable after
such adjustment.

     3.   Transfers.
          ---------

          (a)  Unregistered Security.  Each holder of this Warrant acknowledges
               ---------------------
that this Warrant has not been registered under the Securities Act of 1933, as
amended (the "Securities Act"), and agrees not to sell, pledge, distribute,
              --------------
offer for sale, transfer or otherwise dispose of this Warrant, any Warrant Stock
issued upon its exercise or any Common Stock issued upon conversion of the
Warrant Stock in the absence of (i) an effective registration statement under
the Act as to this Warrant, such Warrant Stock or such Common Stock and
registration or qualification of this Warrant, such Warrant Stock or such Common
Stock under any applicable U.S. federal or state securities law then in effect,
or (ii) an opinion of counsel,

                                      -4-
<PAGE>

reasonably satisfactory to Stamps.com, that such registration and qualification
are not required. Each certificate or other instrument for Warrant Stock issued
upon the exercise of this Warrant shall bear a legend substantially to the
foregoing effect.

          (b)  Transferability. This Warrant may not be transferred or assigned,
               ---------------
in whole or in part, by the Registered Holder except (i) to an affiliate of the
Registered Holder (provided that such affiliate agrees in writing with
Stamps.com and/or iShip.com to comply with Section 17 of the Agreement, as
amended) or (ii) where the Registered Holder has provided the Company with
written notice of its intent to assign or transfer the Warrant and the Company
has consented to such assignment or transfer in writing.  Any transfer in
accordance with the immediately preceding sentence shall be effected upon
surrender of the Warrant with a properly executed assignment (in the form of
Exhibit B hereto) at the principal office of Stamps.com.
---------

          (c)  Warrant Register.  Stamps.com will maintain a register containing
               ----------------
the names and addresses of the Registered Holders of this Warrant.  Until any
transfer of this Warrant is made in the warrant register, Stamps.com may treat
the Registered Holder of this Warrant as the absolute owner hereof for all
purposes; provided, however, that if this Warrant is properly assigned in blank,
          --------  -------
Stamps.com may (but shall not be required to) treat the bearer hereof as the
absolute owner hereof for all purposes, notwithstanding any notice to the
contrary.  Any Registered Holder may change such Registered Holder's address as
shown on the warrant register by written notice to Stamps.com requesting such
change.

     4.   No Impairment.  Stamps.com will not, by amendment of its charter or
          -------------
through reorganization, consolidation, merger, dissolution, sale of assets or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Warrant, but will at all times in good faith assist
in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the holder of
this Warrant against impairment.

     5.   Termination.
          -----------

          This Warrant (and the right to purchase securities upon exercise
hereof) shall terminate on April 27, 2004 (the "Expiration Date").
                                                ---------------

     6.   Notices of Certain Transactions.  In case:
          -------------------------------

          (a)  Stamps.com shall take a record of the holders of its Common Stock
(or other stock or securities at the time deliverable upon the exercise of this
Warrant) for the purpose of entitling or enabling them to receive any dividend
or other distribution, or to receive any right to subscribe for or purchase any
shares of stock of any class or any other securities, or to receive any other
right, to subscribe for or purchase any shares of stock of any class or any
other securities, or to receive any other right, or

          (b)  of any capital reorganization of Stamps.com, any reclassification
of the capital stock of Stamps.com, any consolidation or merger of Stamps.com,
any consolidation or merger of Stamps.com with or into another corporation
(other than a consolidation or merger in

                                      -5-
<PAGE>

which Stamps.com is the surviving entity), or any transfer of all or
substantially all of the assets of Stamps.com, or any other Corporate
Transaction, or

          (c)  of the voluntary or involuntary dissolution, liquidation or
winding-up of Stamps.com,

then, and in each such case, Stamps.com will mail or cause to be mailed to the
Registered Holder of this Warrant a notice specifying, as the case may be, (i)
the date on which a record is to be taken for the purpose of such dividend,
distribution or right, and stating the amount and character of such dividend,
distribution or right, or (ii) the effective date on which such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation,
winding-up, redemption or conversion is to take place, and the time, if any is
to be fixed, as of which the holders of record of Common Stock (or such other
stock or securities at the time deliverable upon such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation,
winding-up, redemption or conversion) are to be determined.  Such notice shall
be mailed at least twenty (20) days prior to the record date or effective date
for the event specified in such notice.

     7.   Reservation of Stock.  Stamps.com will at all times reserve and keep
          --------------------
available, solely for the issuance and delivery upon the exercise of this
Warrant, such shares of Warrant Stock and other stock, securities and property,
as from time to time shall be issuable upon the exercise of this Warrant.

     8.   Exchange of Warrants.  Upon the surrender by the Registered Holder of
          --------------------
any Warrant or Warrants, properly endorsed, to Stamps.com at the principal
office of Stamps.com, Stamps.com will, subject to the provisions of Section 3
hereof, issue and deliver to or upon the order of such Holder, at Stamps.com's
expense, a new Warrant or Warrants of like tenor, in the name of such Registered
Holder or as such Registered Holder (upon payment by such Registered Holder of
any applicable transfer taxes) may direct, calling in the aggregate on the face
or faces thereof for the number of shares of Common Stock called for on the face
or faces of the Warrant or Warrants so surrendered.

     9.   Replacement of Warrants.  Upon receipt of evidence reasonably
          -----------------------
satisfactory to Stamps.com of the loss, theft, destruction or mutilation of this
Warrant and (in the case of loss, theft or destruction) upon delivery of an
indemnity agreement (with surety if reasonably required) in an amount reasonably
satisfactory to Stamps.com, or (in the case of mutilation) upon surrender and
cancellation of this Warrant, Stamps.com will issue, in lieu thereof, a new
Warrant of like tenor.

     10.  Mailing of Notices. Any notice required or permitted pursuant to this
          ------------------
Warrant shall be in writing and shall be deemed sufficient upon receipt, when
delivered personally or sent by courier, overnight delivery service or confirmed
facsimile, or forty-eight (48) hours after being deposited in the regular mail,
as certified or registered mail (airmail if sent internationally), with postage
prepaid, addressed (a) if to the Registered Holder, to the address of the
Registered Holder most recently furnished in writing to Stamps.com and (b) if to
Stamps.com, to the address set forth below or subsequently modified by written
notice to the Registered Holder.

                                      -6-
<PAGE>

     11.  No Rights as Shareholder.  Until the exercise of this Warrant, the
          ------------------------
Registered Holder of this Warrant shall not have or exercise any rights by
virtue hereof as a shareholder of Stamps.com.

     12.  No Fractional Shares.  No fractional shares of Common Stock will be
          --------------------
issued in connection with any exercise hereunder.  In lieu of any fractional
shares which would otherwise be issuable, Stamps.com shall pay cash equal to the
product of such fraction multiplied by the fair market value of one share of
Common Stock on the date of exercise, as determined in good faith by
Stamps.com's Board of Directors.

     13.  Amendment or Waiver.  Any term of this Warrant may be amended or
          -------------------
waived only by an instrument in writing signed by the party against which
enforcement of the amendment or waiver is sought.

     14.  Headings.  The headings in this Warrant are for purposes of reference
          --------
only and shall not limit or otherwise affect the meaning of any provision of
this Warrant.

     15.  Amended and Restated Warrant. This Warrant amends and restates in its
          ----------------------------
entirety the Warrant dated April 27, 1999 (the "Original Warrant") and the
                                                ----------------
Original Warrant shall be of no further force and effect.

                                      -7-
<PAGE>

     16.  Governing Law. This Warrant shall be governed, construed and
          -------------
interpreted in accordance with the laws of the State of California, without
giving effect to principles of conflicts of law.

                                  STAMPS.COM INC.

                                  By: /s/ John M. Payne
                                      ---------------------------------
                                      John M. Payne, Chairman and CEO

                                  Address:    3420 Ocean Park Blvd.
                                              Suite 1040
                                              Santa Monica, CA 90405
                                              Attn: Corporate Secretary

                                  Fax Number: (310) 314-8523

Agreed to and Accepted:

MAiL BOXES ETC. USA, INC.

By:_______________________

Name:_____________________

Title:____________________

                                      -8-
<PAGE>

                                   EXHIBIT A
                                   ---------

                                 PURCHASE FORM
                                 -------------

To:  Stamps.com Inc.                                    Dated: ________________

     The undersigned, pursuant to the provisions set forth in the attached
Warrant, hereby irrevocably elects to purchase ___________ shares of Common
Stock of Stamps.com Inc., a Delaware corporation, covered by such Warrant and
herewith makes payment of $_________________, representing the full purchase
price for such shares at the price per share provided for in such Warrant.

                                ------------------------------------
                                Name of Registered Holder

                              By:
                                 -----------------------------------

                              Name:
                                   ---------------------------------

                              Title:
                                    --------------------------------
<PAGE>

                                   EXHIBIT B
                                   ---------

                                ASSIGNMENT FORM
                                ---------------

     FOR VALUE RECEIVED, _________________________________________ hereby sells,
assigns and transfers all of the rights of the undersigned under the attached
Warrant with respect to the number of shares of Common Stock of Stamps.com Inc.,
a Delaware corporation, covered thereby set forth below, unto:

<TABLE>
<CAPTION>
        Name of Assignee                     Address/Fax Number                No. of Shares
---------------------------------   ------------------------------------   ----------------------
<S>                                 <C>                                    <C>

</TABLE>

Dated: _________________        _______________________________________
                                Name of Registered Holder

                                By:
                                   ------------------------------------

                                Name:
                                     ----------------------------------

                                Title:
                                      ---------------------------------

                                Witness:
                                         ------------------------------<PAGE>
                                                                EXHIBIT 10.42

                      STERLING PLAZA II - LEASE AGREEMENT

THIS LEASE is made and entered into this 7th day of March, 2000, by and between
STERLING REALTY ORGANIZATION CO., a Washington corporation ("Landlord"), and
iSHIP.COM, INC., a Washington corporation ("Tenant").

As parties hereto, Landlord and Tenant hereby agree as follows:

                               LEASE PROVISIONS

1.   Lease Provisions and Exhibits.

     (a)  Leased Premises.  The leased premises (the "Premises") are situated on
          ---------------
          the real property as more particularly described in Exhibit A attached
                                                              ---------
          hereto (the "Land"), and consists of those portions of the building
          located at 3545 Factoria Boulevard S.E. in Bellevue, King County,
          Washington, which are described in Section 1(b) below, which building
          is commonly known as Sterling Plaza II (the "Building"), which is part
          of a complex which will from time-to-time hereafter consist of one or
          more buildings, including the Building and related grounds and parking
          areas situated on the real property as more particularly described in
          Exhibit B attached hereto and shown thereon (the "Project").
          ---------

     (b)  Agreed Floor Areas.  Landlord and Tenant agree that the floor area of
          ------------------
          the Premises is approximately 75,510 rentable square feet, which area
          is comprised of the entire first, second, third and fourth floors of
          the Building.  Landlord and Tenant agree that the total floor area of
          the Building is approximately 92,866 rentable square feet.  Usable
          square feet shall be calculated according to Building Owners and
          Managers Association International ("BOMA") standards namely, the
          "Standard Method for Measuring Floor Area in Office Buildings ANSI -
          BOMA Z-65.1-1996".  Rentable square feet shall also be determined in
          accordance with BOMA based on the usable square footage measured,
          except that the load factor for the apportioned common area of the
          Building to be added to the usable area shall, for each full floor
          occupied by Tenant, not be greater than seven percent (7%), and for
          any partial floor occupied by Tenant, not be greater than ten percent
          (10%) (subject to adjustment following actual measurement of the
          Premises and the Building).  A floor plan of Premises is attached as
          Exhibit C.
          ---------

          Landlord and Tenant agree that (1) reasonable attempts have been made
          to determine the correct square footage used in this Lease based upon
          plans for the Building, and (2) exact square footage shall be
          determined following completion of the shell of the Building. Landlord
          shall, at such time, inform Tenant in writing of its calculation of
          exact square footage of the Premises and the Building. Landlord grants
          Tenant the option to re-measure and challenge the Premises square
          footage calculation, at Tenant's expense, within ninety (90) days
          after receipt of Landlord's calculation. If Tenant's square footage
          calculation differs from Landlord's calculation, Landlord will re-
          measure the Premises at Landlord's expense to determine which
          calculation is correct. Landlord and Tenant agree that any challenge
          of the square footage calculation must be carried out within ninety
          (90) days after the Commencement Date. Once the final areas of the
          Premises and Building have been so determined and agreed upon by
          Landlord and Tenant, rent, Tenant's Percentage of the Building, the
          Tenant Improvement Allowance, and all other amounts based on such
          areas shall be appropriately adjusted by written agreement between
          Landlord and Tenant. After such 90-day period has expired, Landlord
          and Tenant agree to mutually waive any and all rights, claims, or
          liabilities against one another as they relate to the calculation of
          square footage to determine rents and other costs in this Lease.

                                      -1-
<PAGE>

     (c)  Addition to Agreed Floor Area of Premises; Cancellation of Sterling
          -------------------------------------------------------------------
          Plaza I Lease.  Tenant shall have until October 2, 2000, to
          -------------
          irrevocably notify Landlord in writing of Tenant's election to add the
          fifth floor of the Building, consisting of approximately 17,356
          rentable square feet, to the Premises by no later than April 15, 2001
          (as such date may be adjusted based on Landlord's substantial
          completion of the tenant improvements) (the "Fifth Floor Notice").  If
          Tenant has delivered the Fifth Floor Notice to Landlord prior to the
          end of business on October 2, 2000, then Tenant shall have until
          October 1, 2001, to provide Landlord with written notice of its
          election to cancel that certain lease between Landlord and Tenant
          dated July 15, 1999, relating to the Fifth Floor of Sterling Plaza I
          (the "Sterling Plaza I Lease").  Such cancellation must provide at
          least six (6) months notice of the termination date for the Sterling
          Plaza I Lease, but shall otherwise be without cost or penalty to
          Tenant.  If Tenant does not deliver the Fifth Floor Notice to Landlord
          by October 2, 2000, then Tenant must give Landlord written notice of
          its election to cancel the Sterling Plaza I Lease prior to the close
          of business on October 2, 2000, with such cancellation effective no
          sooner than April 2, 2001.  If Tenant fails to give Landlord such
          cancellation notice by October 2, 2000, then the Sterling Plaza I
          Lease shall remain in full force and effect for the remainder of its
          term.

     (d)  Tenant's Percentage of the Building.  "Tenant's Percentage of the
          -----------------------------------
          Building" is equal to 81.3%, calculated by dividing the number of
          rentable square feet in the Premises (75,510) by the number of
          rentable square feet in the Building (92,866).  Tenant's Percentage of
          the Building shall be appropriately adjusted as provided in Section
          1(b) above and at any time during this Lease that the area of the
          Premises or the Building changes.

     (e)  Lease Term.
          ----------

          (1)  Initial Lease Term.  The "Initial Lease Term" for the Premises
               ------------------
               will commence, on a floor-by-floor basis, fifteen (15) days
               following Landlord's substantial completion of the shell and core
               of the Building (as detailed on Exhibit D attached hereto) and
                                               ---------
               the tenant improvements (the scope of which is described on

               Exhibit E attached hereto), including without limitation the
               ---------
               following:

               (A)  the utility and other systems servicing the Building and
                    necessary for the operation of the Building or Tenant's
                    occupancy and full enjoyment of the Premises (such as
                    elevators, plumbing, heating, ventilating, air conditioning,
                    electrical and security systems) shall be completed and in
                    good order and operating condition except for details of
                    construction, decoration and mechanical adjustments which do
                    not materially interfere with Tenant's use of the Premises;

               (B)  The lobby of the Building and the entrances and public
                    portions (including the garage), stairways, corridors and
                    elevators (including freight elevators) of the Building
                    shall have been finished (except for details of
                    construction, decoration and mechanical adjustments which do
                    not materially detract from the appearance of such areas or
                    materially interfere with their use for normal purposes) and
                    shall be in a clean and orderly condition affording
                    reasonable access to all portions of the Premises;

               (C)  The exterior of the Building (including the installation of
                    glass therein) shall have been completed except for minor
                    portions thereof which in the aggregate do not materially
                    affect Tenant's use of the Premises; and

               (D)  the tenant improvements on such floor have been
                    substantially completed (meaning they are fully completed in
                    accordance with the approved plans and

                                      -2-
<PAGE>

                    specifications and ready for use by Tenant except for minor
                    punchlist items that do not materially affect Tenant's use
                    thereof).

               Additionally, Landlord shall have obtained a temporary
               Certificate of Occupancy for the Building and a temporary
               Certificate of Occupancy with respect to such floor of the
               Premises, each issued by the City of Bellevue.

               Tenant may use the fifteen (15) day period following substantial
               completion, as described above, to move its furniture and
               fixtures into the Premises.  Each such date, on a floor-by-floor
               basis, is the "Commencement Date."  The Initial Lease Term will
               expire on that date which is the last day of the month eight (8)
               years following the last Commencement Date to occur for floors
               one through four.  Landlord and Tenant shall confirm in writing
               the Commencement Date applicable to each floor of the Premises.
               Landlord and Tenant estimate that the Commencement Date shall be
               as follows for each of the floors:  (i) first floor:  February 1,
               2001; (ii) second floor:  February 15, 2001;  (iii) third floor:
               March 1, 2001; and (iv) fourth floor:  March 15, 2001.

          (2)  Conditions to Commencement of Initial Lease Term.  In order for
               ------------------------------------------------
               the Initial Lease Term to commence, the acquisition of Tenant by
               Stamps.com, Inc. must have occurred, and Tenant must have
               provided evidence of the same satisfactory to Landlord.

          (3)  Boundary Line Adjustment.  Landlord has caused a boundary line
               ------------------------
               adjustment involving the Land and the land on which Sterling
               Plaza I is located (the "Sterling Plaza I Property") to be
               recorded in the real property records of King County, Washington.
               Landlord hereby indemnifies Tenant with respect to any loss,
               cost, damage or expense incurred by Tenant in the event Landlord
               fails to obtain written approval from New York Life Insurance
               Company ("NYLIC"), Landlord's lender on Sterling Plaza I, of the
               boundary line adjustment necessary to legally separate the Land
               from the Sterling Plaza I Property which is encumbered by a deed
               of trust in favor of NYLIC.

          (4)  Option to Renew the Lease.  Provided Tenant is not then in
               -------------------------
               default under this Lease beyond any applicable notice an cure
               periods, either at the time notice of exercise is given or upon
               expiration of the initial term of this Lease, Tenant shall have
               the option to extend the term of this Lease for two (2) renewal
               terms of five (5) years (each, a "Renewal Term").  Except for the
               monthly rent described below and other economic terms, the terms,
               covenants, and conditions of this Lease shall remain unchanged
               during each Renewal Term (unless otherwise mutually agreed by
               Landlord and Tenant).  Tenant may exercise the option by giving
               written notice of exercise ("Tenant's Exercise Notice") to
               Landlord not earlier than fourteen (14) months but at least
               eleven (11) months prior to the expiration of the Initial Lease
               Term or the first Renewal Term, as applicable.  If Tenant's
               Exercise Notice is not timely given, the option to renew (and any
               subsequent option to renew) shall terminate.

          (5)  Determination of Market Rental Rate.  The rent to be paid during
               -----------------------------------
               each Renewal Term will be the then-market rental rate based upon
               rates prevailing at the time of commencement of the Renewal Term
               for comparable leases in comparable office buildings located in
               the vicinity of the I-90 corridor in the City of Bellevue,
               Washington.  Comparable leases shall include leases of a similar
               duration for tenants which are not directly or indirectly
               affiliated with their Landlord.  Within ninety (90) days after
               receipt of Tenant's Exercise Notice, Landlord will provide Tenant
               with a written proposal for rent during the upcoming Renewal
               Term.  Within sixty (60) days after Tenant's receipt of
               Landlord's written proposal, Tenant shall provide Landlord with a
               written response.  If, within sixty (60) days after Tenant's
               written response is received by Landlord, the parties are unable
               to reach an agreement as to the rental rate applicable during the
               Renewal Term, the then-market rental rate will be established as
               follows:  Landlord and Tenant shall each, by that date which is
               three (3)

                                      -3-
<PAGE>

               months prior to the commencement of the upcoming Renewal Term,
               retain an individual with substantial experience in the appraisal
               of commercial office property located in the Seattle-Bellevue
               metropolitan area and holding a designation of "MAI" or
               equivalent professional qualification (an "Appraiser"). The two
               Appraisers retained shall, within two (2) weeks of their
               appointment, appoint a third Appraiser. By that date which is two
               (2) months prior to the commencement of the upcoming Renewal
               Term, each Appraiser shall, through his or her independent
               research, determine the then-market rental rate (exclusive of
               triple-net additional rent) that he or she believes to be
               applicable to the Premises during the upcoming Renewal Term, and
               shall provide written notice of the same to Landlord, Tenant and
               the other Appraisers (the "Appraised Rent"). The Appraised Rents
               determined by the two Appraisers that are closest in dollar
               amount to one another shall be averaged, and the resulting number
               shall be the base rent for the upcoming Renewal Term. Landlord
               and Tenant shall each bear the cost of the Appraiser it appoints,
               and shall share equally the cost of the third Appraiser.
               Notwithstanding the foregoing, in no event shall the base rent
               payable during any Renewal Term be less than the base rent
               payable during the last month of Initial Lease Term or the first
               Renewal Term, as applicable.

     (f)  Rent.  The monthly rent for the Premises shall commence, on a floor-
          ----
          by-floor basis, on the Commencement Date.  The annual base rent for
          the Premises, on a per rentable square foot basis, is as follows:

                       1st year of Initial Lease Term:      $23.00
                       2nd year of Initial Lease Term:      $23.58
                       3rd year of Initial Lease Term:      $24.17
                       4th year of Initial Lease Term:      $24.78
                       5th year of Initial Lease Term:      $25.40
                       6th year of Initial Lease Term:      $26.04
                       7th year of Initial Lease Term:      $26.69
                       8th year of Initial Lease Term:      $27.36

          together with additional rent as provided in Section 8 of this Lease.
          The "first year" of the Initial Lease Term shall be the period from
          the first Commencement Date to the end of the twelfth (12th) month
          after the last Commencement Date. Such base rent shall be payable in
          equal monthly installments. Rent for any partial month at the
          beginning of the Initial Lease Term shall be prorated on the basis of
          the number of days elapsed. Landlord and Tenant shall confirm in
          writing the amount of base rent due based on the final calculations
          of, or any adjustments to, the floor area of the Premises. Rent is to
          be paid in advance on or before the first day of each month without
          offset or deduction at the offices of Landlord, Sterling Realty
          Organization Co., 600 - 106th Avenue NE, Suite 200, Bellevue,
          Washington 98004, or P.O. Box 91723, Bellevue, Washington 98009, or
          such other place designated by Landlord.

     (g)  Letters of Credit; Security Deposit.
          -----------------------------------

          (1)  Letter of Credit No. 1.  Tenant shall, on or before March 13,
               ----------------------
               2000, provide to Landlord an irrevocable letter of credit
               ("Letter of Credit No. 1") in the amount of $1,812,240.00
               (calculated by multiplying the 75,510 rentable square foot floor
               area of the Premises by $24.00), issued by a bank reasonably
               satisfactory to Landlord and in the form attached hereto as
               Exhibit F, as security for Tenant's performance of its
               ---------
               obligations under this Lease.   If Tenant fails to deliver Letter
               of Credit No. 1 to Landlord by March 13, 2000, then for each day
               thereafter until Letter of Credit No. 1 is delivered to Landlord,
               there will be a day-for-day delay in the target Commencement
               Dates set forth in Section 1(e) above.  The amount of Letter of
               Credit No. 1 shall be adjusted based on the final determination
               of floor area under Section 1(b) above, and Tenant shall increase
               the amount of Letter of Credit No. 1 when any floor area is,
               during the Initial Lease Term,

                                      -4-
<PAGE>

               added to the Premises in accordance with the provisions of this
               Lease. The amount of Letter of Credit No. 1 shall be reduced to
               zero in eight (8) annual reductions, each of 12.5% of the
               original amount of Letter of Credit No. 1, commencing on the last
               Commencement Date to occur (as set forth in Section 1(e)(1)
               above) and on each subsequent anniversary thereof. If Tenant is
               in default of its obligations under this Lease, Landlord may so
               certify to the issuer of Letter of Credit No. 1, and upon
               presentation, such issuer shall cause Letter of Credit No. 1 to
               be drawn down in its entirety and paid to Landlord. If the amount
               drawn down by Landlord under Letter of Credit No. 1 is in excess
               of the amount necessary to cure Tenant's default under this
               Lease, then Landlord shall hold the remainder of such funds as a
               security deposit (the "Security Deposit") for the account of
               Tenant. Landlord's obligations with respect to the Security
               Deposit are those of a debtor and not a trustee. Landlord may
               maintain such sums separate and apart from Landlord's general
               funds or may commingle them with Landlord's general or other
               funds. Landlord is not required to pay Tenant interest on such
               sums, or any portion thereof.

          (2)  Letter of Credit No. 2.  If, at any time after the first thirty
               ----------------------
               (30) months of the Initial Lease Term, Stamps.com, Inc. has a net
               operating loss, measured over the previous four calendar
               quarters, that is greater than one-half the amount of Stamps.com,
               Inc.'s then-current working capital, all as determined in
               accordance with generally accepted accounting principles, Tenant
               shall provide to Landlord an additional irrevocable letter of
               credit issued by a bank reasonably satisfactory to Landlord and
               in the form attached hereto as Exhibit F in an amount equal to
                                              ---------
               the then-rentable square foot floor area of the Premises
               multiplied by $10.00 ("Letter of Credit No. 2").  Letter of
               Credit No. 2 shall remain posted with Landlord for so long as
               Stamps.com, Inc.'s financial condition remains as stated in the
               preceding sentence.  If Tenant is in default of its obligations
               under this Lease, Landlord may so certify to the issuer of Letter
               of Credit No. 2, and upon presentation, such issuer shall cause
               Letter of Credit of Credit No. 2 to be drawn down in its entirety
               and paid to Landlord.  If the amount drawn down by Landlord under
               Letter of Credit No. 2 is in excess of the amount necessary to
               cure Tenant's default under this Lease, then Landlord shall hold
               the remainder of such funds as a Security Deposit for the account
               of Tenant.

     (h)  Financial Statements.  Promptly following the end of each fiscal
          --------------------
          quarter, Tenant shall provide Landlord with copies of financial
          statements for Tenant and Stamps.com, Inc. for the previous fiscal
          quarter, certified by Tenant's chief financial officer and the chief
          financial officer of Stamps.com, Inc., respectively, to be true,
          accurate and complete.  Financial statements shall be required for
          only Stamps.com, Inc. if Tenant and Stamps.com, Inc. report on a
          consolidated basis.  Landlord shall keep all such financial
          information confidential, provided that Landlord may disclose such
          information, on a confidential basis, to Landlord's mortgagee or
          prospective purchasers of the Land and the Building.

     (i)  Guaranty of Lease.  Stamps.com, Inc., Tenant's parent company
          -----------------
          following the acquisition that is a condition to the commencement of
          this Lease, shall guaranty the payment and performance of all of
          Tenant's obligations under this Lease, as evidenced by its execution
          of the Guaranty of Lease, the form of which is attached hereto as
          Exhibit G.
          ---------

     (j)  Permitted Uses.  The Premises shall be used only for general office
          --------------
          purposes and uses ancillary thereto (including without limitation a
          computer server room, auditorium, conference room, exercise facility
          and cafeteria and dining facility, but only so long as such uses are
          ancillary to the general office use of the Premises, used only by
          employees of Tenant (unless otherwise agreed in writing by Landlord),
          and such ancillary uses do not require any additional parking under
          City of Bellevue zoning ordinances) and for no other purpose or use
          without the written consent of Landlord.

                                      -5-
<PAGE>

                          GENERAL TERMS AND CONDITIONS

2.   Premises.  Landlord does hereby lease to Tenant, and Tenant does hereby
     lease from Landlord, upon the terms and conditions herein set forth, the
     Premises described in Section 1(a) hereof.

3.   Term.  The Lease term shall be for the period stated in Section 1(e)
     hereof.  The Lease term shall commence on the Commencement Date specified
     in Section 1(e).  Neither Landlord nor any agent or employee of Landlord
     shall be liable for any damage or loss due to Landlord's inability or
     failure to deliver possession of the Premises to Tenant as provided herein.

4.   Rent.  Tenant shall pay Landlord the monthly rent stated in Section 1(f)
     hereof without demand, deduction or offset (except as otherwise expressly
     provided in this Lease), payable in lawful money of the United States in
     advance on or before the day specified in Section 1(f) to Landlord at the
     offices of Landlord or its building manager at the place specified in
     Section 1(f), or to such other party or at such other place as Landlord may
     hereafter from time to time designate in writing.  Rent for any partial
     month at the beginning or end of the Lease term shall be prorated.
     Notwithstanding anything in Section 8 hereof, the rent payable by Tenant
     shall in no event be less than the rent specified in Section 1(f) of this
     Lease.

     (a)  Late Fees On Overdue Rent.  With respect to the first two (2) times
          -------------------------
          during any calendar year of the Lease term that Tenant fails to pay
          any rent, additional rent or other sums payable by Tenant to Landlord
          hereunder in a timely manner, Landlord shall provide written notice to
          Tenant so stating (each, a "Late Notice").  If such payment is not
          received within three (3) days following receipt of the Late Notice,
          then such rent, additional rent or other sums payable by Tenant to
          Landlord shall bear interest at a rate equal to three percent (3%) per
          annum, compounded monthly, above the prime lending rate as publicly
          announced from time to time by Bank of America, calculated from the
          date of delinquency to the date of payment (the "Default Rate").  If,
          during any calendar year of the Lease term Tenant has received two (2)
          Late Notices and Tenant fails to pay to Landlord any rent, additional
          rent or other sums due hereunder when due, then such amounts shall
          bear interest at the Default Rate from the date of delinquency to the
          date of payment.

     (b)  Collection Fee on Overdue Rent.  With respect to the first two (2)
          ------------------------------
          times during any calendar year of the Lease term that Tenant fails to
          pay its rent in a timely manner, Landlord shall provide a Late Notice
          to Tenant.  If such payment is not received within three (3) days
          following receipt of the Late Notice, then such rent, additional rent
          or other sums payable by Tenant to Landlord shall also be subject to a
          collection fee equal to three percent (3%) of the amount due.  If,
          during any calendar year of the Lease term Tenant has received two (2)
          Late Notices and Tenant fails to pay to Landlord any rent, additional
          rent or other sums due hereunder when due, then such amounts shall be
          subject to a collection fee equal to three percent (3%) of the amount
          due.

5.   Notices.  All notices under this Lease shall be in writing and delivered in
     person or sent by facsimile or by registered or certified mail to Landlord
     at the address below, to Tenant at the Premises after the Commencement Date
     and at the address below prior to the Commencement Date, and to the holder
     of any first mortgage or deed of trust at such place as such holder shall
     specify to Tenant in writing; or at such other facsimile number or address
     as may from time to time be designated by each party in writing.  Notices
     will be deemed to have been given on the date sent by facsimile with
     evidence of receipt by the intended party, on the date delivered in the
     case of personal delivery or, if mailed, on that date which is two (2) days
     after the postmark thereof.

                   LANDLORD:         Sterling Realty Organization Co.
                                     600 - 106th Avenue NE, Suite 200
                                     Bellevue, Washington  98004
                                     Attention:  Property Manager

                                      -6-
<PAGE>

                                     Telephone:       (425) 455-8100
                                     Facsimile No.:   (425) 455-8165
                   TENANT:           iShip.com, Inc.
                                     3535 Factoria Boulevard S.E., Suite 500
                                     Bellevue, Washington  98006
                                     Attention:  Stephen M. Teglovic, CEO

                                     Telephone:       (425) 602-4848
                                     Facsimile No.:   (425) 602-5025

                   with a courtesy copy to John E. Jamerson, CFO, at Tenant's
                   address stated above, provided that Landlord's failure to
                   provide the courtesy copy shall not delay or defeat the
                   effectiveness of any notice given to Tenant.

6.   Uses.  The Premises are to be used only for the uses specified in Section
     1(j) hereof (the "Permitted Uses") and for no other business or purpose
     without the written consent of Landlord, which consent shall not be
     unreasonably withheld.  Tenant shall not commit or allow any acts to be
     done in or about the Premises that are unlawful or that will cause an
     increase to the existing rate of insurance on the Building.  Tenant shall
     not commit or allow to be committed any waste upon the Premises, or create
     or allow to be created any public or private nuisance in the Building.
     Tenant shall not, without the written consent of Landlord, use any
     apparatus, machinery or device in or about the Premises which will cause
     any substantial noise or vibration or any increase in the normal use of
     electric power.  If any of Tenant's office equipment should disturb the
     quiet enjoyment of any other tenant in the Building, then Tenant shall
     provide adequate insulation, or take other such action as may be necessary
     to eliminate the disturbance.  Tenant shall comply with all laws and
     regulations relating to its use of the Premises, including laws relating to
     Hazardous Materials (defined in Section 43 below) and shall observe such
     reasonable rules and regulations as may be adopted and published by
     Landlord from time to time for the safety, care and cleanliness of the
     Premises or the Building, and for the preservation of good order therein,
     including but not limited to any Rules and Regulations currently in effect,
     which are attached to this Lease as Exhibit H.  Such rules and regulations
                                         ---------
     shall not be inconsistent with the terms of this Lease and shall be
     enforced against all tenants of the Building in a non-discriminatory
     manner.

7.   Services and Utilities.  Landlord shall furnish the Premises with
     electricity for lighting and operation of customary office machines, water,
     and elevator service, and, during Normal Business Hours, lighting, heat and
     normal air conditioning.  "Normal Business Hours" are defined as 7:00 a.m.
     to 6:00 p.m., Monday through Friday, and 7:00 a.m. to 12:00 p.m. on
     Saturdays.  Outside Normal Business Hours, utility services will be
     provided to the Premises, and Tenant shall pay Landlord for the actual cost
     of providing lighting, heat and normal air conditioning, including the
     associated electrical and maintenance costs.  Tenant shall have access to
     the Building 24 hours per day, 7 days per week, through use of the "key
     card" security system.

     (a)  Extra Services.  During all hours which are not business hours,
          --------------
         Landlord shall furnish all of such services set forth above, except the
         following:

          (1)  Utility Services.  If requested by Tenant, Landlord shall furnish
               ----------------
               heat and air conditioning to the Premises at times other than
               Normal Business Hours, and Landlord's actual cost of providing
               such services to Tenant shall be paid by Tenant to Landlord as
               Additional Rent.

          (2)  Janitorial Services.  Janitorial service shall be provided each
               -------------------
               day except for Fridays, Saturdays or legal holidays, and shall be
               comparable to such services provided in Class A office buildings
               in Bellevue, Washington.  The costs of any janitorial or other
               services provided or caused to be provided by Landlord to Tenant
               which are in addition to the services ordinarily provided to
               tenants of the Building shall be payable by Tenant as Additional
               Rent.

                                      -7-
<PAGE>

          (3)  Increased Utility Loads.  Landlord shall be entitled to install
               -----------------------
               and operate at Tenant's sole cost and expense a
               monitoring/metering system in the Premises to measure the demands
               on the electricity and HVAC systems of the Building.  Landlord
               represents and warrants that the Building's electrical system
               will provide an electrical load of at least 4.5 total watts per
               square foot.  Tenant shall comply with Landlord's reasonable
               instructions for the use of drapes, blinds and thermostats in the
               Building.

     (b)  Interruption to Services.  Landlord shall not be liable for any loss,
          ------------------------
          injury or damage to property caused by or resulting from any
          variation, interruption, or failure of such services due to any cause
          outside of Landlord's reasonable control, except if such interruption
          or failure continues for forty-eight (48) hours or more, in which case
          rent shall be abated for that time after forty-eight (48) hours until
          such interruption ceases.  In the event of such variation,
          interruption or failure, however, Landlord shall use reasonable
          diligence to restore such service.  Except as provided above, no
          temporary interruption or failure of such service incident to the
          making of repairs, alterations or improvements or due to accident or
          strike, or conditions or events beyond Landlord's reasonable control
          shall be deemed an eviction of Tenant or relieve Tenant from any of
          Tenant's obligations hereunder.

8.  Costs of Services and Utilities.

     (a)  Definitions.  As used herein, the following terms have the following
          -----------
          respective meanings unless the context otherwise specifies or clearly
          requires.

          (1)  "Lease Year" means a calendar year commencing January 1 and
                ----------
               ending December 31.

          (2)  "Operating Costs" means all reasonable and necessary expenses,
                ---------------
               based on Landlord's reasonable business judgment and customary
               practices, paid or incurred by Landlord for maintaining,
               operating and repairing the Building (including the parking
               facilities), the Land, and the personal property used in
               conjunction therewith, to the extent not paid directly by Tenant,
               including but not limited to all expenses paid or incurred by
               Landlord for Property Taxes as defined in Section 9 below;
               insurance required by Section 17(b)(2) below, by Landlord's
               mortgagee, or otherwise in Landlord's reasonable discretion;
               electricity during Normal Business Hours, water, gas, sewer,
               refuse collection, telephone charges and security service not
               chargeable to tenants and similar utilities services; the cost of
               supplies and window washing, cost of services of independent
               contractors, cost of compensation (including employment taxes and
               fringe benefits) of all persons who perform duties in connection
               with such Operating Costs and any other expense or charge which
               in accordance with generally accepted accounting and management
               principles would be considered an expense of maintaining,
               operating or repairing the Building, together with a property
               management fee equal to four percent (4%) of the monthly base
               rent for the Premises.  Operating Costs shall include the cost of
               replacing cracked or broken exterior windows, but shall not
               include (A) costs for maintaining and repairing structural
               components of the Building; (B) any depreciation or amortization
               costs related to the Building or any portion or component of the
               Building or any equipment or other property used in connection
               with the Building, except as specifically permitted by the terms
               of this Lease; (C) any loan payments, principal or interest, or
               ground lease or similar payments; (D) any leasing costs,
               including brokerage commissions, legal fees, vacancy costs, and
               refurbishment or improvement expenses, in connection with the
               premises of a particular tenant; (E) any collection costs,
               including legal fees, or bad debt losses or reserves; (F) any
               costs or expenses resulting from Landlord's violation of any
               agreement to which it is a party or any applicable laws or
               ordinances or governmental rules, regulation, or orders; (G)
               Landlord's general corporate overhead and general and
               administrative expenses in excess of costs and expenses directly
               attributable to the operation and management of the Building; (H)
               any cost or expenses which would not,

                                      -8-
<PAGE>

               under generally accepted accounting and management principles, be
               regarded as a maintenance and operating expense; or (I) the items
               listed on Exhibit I to this Lease.  All Operating Costs
                         ---------
               associated with the maintenance of the parking areas will be pro
               rated among users of the Project on the following basis: Tenant's
               pro rata share of such Operating Costs for the Parking areas of
               the Project will be the fraction, the numerator of which is
               75,510 square feet (i.e. the rentable area of the Premises), as
               such area may be adjusted in accordance with the terms of this
               Lease, and the denominator of which is the sum of the rentable
               areas expressed in rentable square feet of all buildings now or
               hereafter located in the Project (pro rated as to the fraction of
               any year from the time any such new building is completed and
               placed in service). Currently there are three buildings located
               in the Project, the Building, Sterling Plaza I (which has 127,401
               rentable square feet) and the Factoria Cinemas (which has 47,621
               rentable square feet). All Operating Costs associated with the
               operation of the parking areas, including any parking control
               mechanism or valet parking service, will be pro rated among users
               of the Project and the users of the 12600 Building (which has
               52,227 rentable square feet).

          (3)  "Estimated Operating Costs" means Landlord's estimate of
                -------------------------
               Operating Costs for the following Lease Year to be given by
               Landlord to Tenant pursuant to Section 8(b)(1).

     (b)  Additional Rent.  Tenant shall pay to Landlord as rent, in addition to
          ---------------
          the rent provided in Section 1(f) above, all Operating Costs allocable
          to the Premises and any and all other sums expressly provided for
          hereunder.

          (1)  Rent Adjustment for Estimated Operating Costs.  Landlord shall,
               ---------------------------------------------
               prior to the first Commencement Date and within 90 days after the
               commencement of each Lease Year thereafter, furnish to Tenant a
               written statement setting forth (A) Tenant's proportionate share
               of Estimated Operating Costs for such Lease Year, and (B) the
               amount of Additional Rent payable monthly during such Lease Year,
               which will equal one-twelfth (1/12) of the amount.  If such
               Estimated Operating Costs are furnished after the commencement of
               the Lease Year, Tenant shall also make a retroactive lump-sum
               payment equal to the amount of such excess multiplied by the
               number of months during the Lease Year for which no such
               adjustment was paid.

          (2)  Actual Operating Costs.  Within ninety (90) days after the close
               ----------------------
               of each Lease Year during the term hereof, Landlord shall deliver
               to Tenant a written statement setting forth the actual Operating
               Costs during the preceding Lease Year.  If such costs for any
               Lease Year exceed the Estimated Operating Costs paid by Tenant to
               Landlord pursuant to Section 8(b)(1) for such Lease Year, Tenant
               shall pay the amount of such excess to Landlord as additional
               rent within thirty (30) days after receipt of such statement by
               Tenant.  If such statement shows such costs to be less than the
               amount paid by Tenant to Landlord pursuant to Section 8(b)(1),
               then the amount of such overpayment shall be credited toward the
               next monthly rent payable by Tenant or, if this Lease has
               terminated, shall be paid to Tenant within thirty (30) days.

          (3)  Determinations.  The determination of Operating Costs and
               --------------
               Estimated Operating Costs shall be made by Landlord in its
               reasonable business judgment.  If Tenant notifies Landlord in
               writing within three (3) years after the receipt by Tenant of
               Landlord's statement setting forth the preceding years' Operating
               Costs, then Tenant may review or audit Landlord's books and
               records pertaining to Operating Costs.  In the event that any
               such audit, conducted in accordance with generally accepted
               accounting principles, reveals a discrepancy of three percent
               (3%) or more between Landlord's statement of the actual Operating
               Costs for a Lease Year and the amount of such Operating Costs
               determined by such audit, then if the Operating Costs were
               overstated Landlord shall reimburse to Tenant the excess amount
               paid by Tenant and Landlord shall pay for the

                                      -9-
<PAGE>

               reasonable cost of such audit; but if the Operating Costs were
               understated then Tenant shall pay to Landlord the amount of such
               deficiency and Tenant shall pay for the cost of such audit.

               Rent due pursuant to this section shall be Additional Rent
               payable by Tenant hereunder, and in the event of nonpayment
               thereof, Landlord shall have similar rights with respect to such
               nonpayment as it has with respect to any other nonpayment of rent
               hereunder.

          (4)  Extra Services Requested by Tenant.  If Tenant requests Landlord
               ----------------------------------
               to provide extra services not included in Operating Costs, and
               Landlord agrees to do so, such services will, during the Initial
               Term of this Lease, be charged at a rate of Fifty Dollars
               ($50.00) per hour for Landlord's agent to perform or supervise
               such services for the repair, maintenance and operation of the
               Premises as Tenant may request.  Landlord will separately invoice
               Tenant for the cost of such services, and the amount due shall be
               Additional Rent payable by Tenant hereunder.

          (5)  End of Term.  If this Lease terminates on a day other than the
               -----------
               last day of a Lease Year, the amount of any adjustment between
               Estimated Operating Costs and Actual Operating Costs with respect
               to the Lease Year in which such termination occurs will be
               prorated on the basis which the number of days from the
               commencement of such Lease Year to and including such termination
               date bears to 365, and any amount payable by Landlord to Tenant
               or Tenant to Landlord with respect to such adjustment is payable
               within thirty (30) days after delivery of the Statement of
               Operating Costs with respect to such Lease Year.

9.   Property Taxes.   "Property Taxes" means all real property taxes and
     assessments and personal property taxes, charges and assessments levied
     with respect to the Land, the Building, and any improvements, fixtures and
     equipment, and all other property of Landlord, real or personal, located in
     or on the Building and used in connection with the operation of the
     Building.  In addition to the foregoing, Property Taxes shall include a pro
     rata portion of all real property taxes and assessments for the driveway,
     parking, and related landscaped areas of the Project (the "Parking Lot
     Taxes").  The portion of the Parking Lot Taxes allocated to the Tenant
     shall be equal to the percentage of rentable space occupied by the Tenant
     compared to the total amount of rentable square feet contained in the
     Project (including the Factoria Cinemas).  Tenant's share of Parking Lot
     Taxes shall be computed by multiplying the total Parking Lot Taxes by a
     fraction, the numerator of which is 75,510 (i.e. the rentable area of the
     Premises), and the denominator of which is the sum of the rentable areas
     expressed in square feet of all buildings now or hereafter located in the
     Project (pro rated as to the fraction of any year from the time any such
     new building is completed and placed in service).  Currently there are
     three buildings located in the Project, the Building (which has 92,866
     rentable square feet, Sterling Plaza I (which has 127,401 rentable square
     feet) and the Factoria Cinemas (which has 47,621 rentable square feet), for
     a total of 267,888 rentable square feet.

10.  Taxes on Rents and Personal Property.  If any governmental authority shall
     in any manner levy a tax on rents payable under this Lease or rents
     accruing from Tenant's use of property, or such a tax in any form against
     Landlord measured by income derived from the leasing or rental of the
     Building, such tax shall be paid by Tenant either directly or through
     Landlord; provided, however, that Tenant shall not be liable to pay any
     state or federal income tax imposed on Landlord.

     Tenant shall pay prior to delinquency all personal property taxes with
     respect to all property of Tenant located on the Premises or the Building
     and shall provide promptly upon request of Landlord written proof of such
     payment.

11.  Acceptance of Premises.  Landlord shall deliver the Premises to Tenant in a
     clean and orderly condition and in accordance with the provisions of
     Section 1(e) above.

                                      -10-
<PAGE>

12.  Improvements.  Subject to Section 21 of this Lease, upon the expiration or
     sooner termination of this Lease, all improvements and additions to the
     Premises made by Tenant shall become the property of Landlord.

13.  Alterations and Care of Premises.  Tenant shall take good care of the
     Premises and shall promptly make all necessary repairs and maintenance,
     except those to be made by Landlord as provided herein.  Additionally, if
     Tenant elects to upgrade the generator that Landlord would otherwise have
     provided to operate the life safety systems of the Building, Tenant shall,
     during the term of this Lease, maintain such generator in accordance with
     all manufacturer's instructions relating thereto.

     (a)  Except as expressly permitted by the terms of this paragraph, Tenant
          shall not make any alterations, additions or improvements in or to the
          Premises, or make changes to locks on doors, or add, disturb or in any
          way change any floor covering, wall covering, fixtures, plumbing or
          wiring, without first obtaining the written consent of Landlord, which
          consent shall not be unreasonably withheld or delayed.  Landlord may,
          in determining whether to grant or withhold its consent to a
          particular alteration, addition or improvement, consider the
          likelihood that the particular alteration, addition or improvement
          will be usable by a subsequent tenant of the Premises.
          Notwithstanding the foregoing, Landlord's consent shall not be
          required for changes that cost Fifty Thousand Dollars ($50,000) or
          less and do not affect Building systems.  If Landlord withholds its
          consent to a particular alteration, addition or improvement based on
          the unlikelihood that a subsequent tenant would find that alteration,
          addition or improvement usable, then Tenant may proceed to make the
          particular alteration, addition or improvement, but shall remove it
          from the Premises prior to the expiration or earlier termination of
          this Lease.  Within thirty (30) days following the completion of any
          alterations or improvements, Tenant shall provide Landlord with "as-
          built" plans showing the alterations or improvements made to the
          Premises.

     (b)  If Landlord's consent is required, then prior to Tenant commencing
          work on any alteration, addition or improvement to the Premises,
          Tenant shall submit to Landlord two (2) copies, and, at the request of
          Landlord, shall submit to any mortgagee holding a mortgage or deed of
          trust encumbrance on the Land one (1) copy, of full and complete plans
          and specifications detailing the design and plan of improvements for
          any such alteration, addition or improvement.

          Landlord does not and will not make any covenant or warranty, express
          or implied, that any such plans or specifications submitted by Tenant
          are accurate, complete or in any way suited for their intended
          purpose.  Landlord shall either approve or disapprove plans within
          five (5) business days and, if approved, return a signed, approved
          copy to Tenant.  Landlord will not unreasonably withhold or delay its
          approval.  In the event that the plans are not approved by Landlord,
          Landlord shall inform Tenant of the reasons for its disapproval and
          Tenant shall have twenty (20) days in which to submit revised plans to
          Landlord for approval.  Tenant shall not unreasonably refuse to
          satisfy any objections made by Landlord to the plans and
          specifications.  Any objections Tenant has to Landlord's objection
          shall be submitted to Landlord in writing within the twenty (20) day
          period.  Landlord shall respond to such revised plans within five (5)
          business days after their submittal by Tenant.  A failure of one party
          to give any notice to the other party within the period provided for
          doing so shall be deemed to constitute approval of the plans and
          specifications or the objections thereto, as appropriate. Within
          thirty (30) days following the completion of any alterations or
          improvements, Tenant shall provide Landlord with "as-built" plans
          showing the alterations or improvements made to the Premises.

     (c)  All such work so done by Tenant shall be done in accordance with all
          laws, ordinances, and rules and regulations of any federal, state,
          county, municipal or other public authority and/or Board of Fire
          Underwriters.  Tenant expressly covenants and agrees that no liens of
          mechanics, materialmen, laborers, architects, artisans, contractors or
          subcontractors engaged by or through Tenant, or any other lien of any
          kind whatsoever arising by or through Tenant, shall be created against
          or imposed upon the Premises, the Land or the Building, and that in
          the event any such

                                      -11-
<PAGE>

          claims or liens of any kind whatsoever shall be asserted or filed by
          any persons, firms or corporations performing labor or furnishing
          material in connection with such work, Tenant shall pay off or cause
          the same to be discharged of record within five (5) days of
          notification thereof. Except as provided in Section 21 below, all
          alterations, improvements, or changes made by Tenant to the Premises
          shall be the property of Landlord and shall remain upon and be
          surrendered with the Premises upon the termination of this Lease;
          provided, however, that Tenant shall remove any alteration, addition
          or improvement made to the Premises by Tenant subsequent to the
          completion of the initial tenant improvements to be made pursuant to
          Exhibit E and to which Landlord withheld its consent under the terms
          ---------
          of Section 13(b) above.  Tenant will remove any such alterations,
          additions or improvements made by Tenant prior to Tenant surrendering
          possession of the Premises to Landlord, and repair any damage caused
          to the Premises thereby, all at the sole cost and expense of Tenant.

          After the beginning of each Lease Year during the term of this Lease
          or any Renewal Term, Landlord may deliver a certificate to Tenant
          requesting that Tenant provide Landlord with an itemized list of all
          alterations, improvements or changes that Tenant has made to the
          Premises during the previous Lease Year.  Tenant shall complete the
          certificate and return the same to Landlord within thirty (30) days
          following the date on which it was received.  In the event no
          alterations or improvements were made during the previous Lease Year,
          Tenant shall so indicate on the certificate provided.

          All damage or injury done to the Building or the Premises or any
          appurtenances to either by Tenant, or by Tenant's agents, invitees,
          licensees, or employees, including the cracking or breaking of glass
          of any windows and doors, shall be paid for by Tenant.

     (d)  Tenant shall not put curtains, draperies or other hangings on or
          beside the windows in the Premises or place any furniture on the
          patios or common areas without first obtaining Landlord's consent.
          All normal repairs necessary to maintain the Premises in a tenantable
          condition and consistent with the standards for a Class A office
          building in the Bellevue metropolitan area shall be done by or under
          the direction of Landlord, acting reasonably and in good faith.
          Tenant shall promptly notify Landlord of any damage to the Premises
          requiring repair, and if such repair is Landlord's obligation under
          the terms of this Lease, Landlord shall make such repair within thirty
          (30) days thereafter.  If Landlord fails to respond to Tenant's notice
          within the 30-day period provided for doing so, then Tenant may cause
          the repairs to be accomplished.  Landlord shall reimburse Tenant for
          all reasonable costs and expenses incurred by Tenant in making the
          repairs, and such reimbursement shall be made within thirty (30) days
          of Landlord's receipt of an invoice for the amount of such costs and
          expenses.

     (e)  Landlord shall be responsible for maintaining and repairing the
          structural components of the Building at Landlord's sole cost.  If
          Tenant believes that there is a problem or defect in the structural
          elements of the Building, including problems or defects in the
          foundation, exterior walls, floors or the roof system, and also
          including but not limited to safety aspects of the Building (as
          determined under applicable building codes as in effect on the date
          hereof), Tenant shall give Landlord notice of any such defect.  Tenant
          and Landlord shall cooperate to determine promptly whether any such
          defect exists and to identify any damage to the Building resulting
          from such defect.  Landlord shall repair any such defect and resulting
          damage.  If Landlord fails to make any such repairs which can
          reasonably be completed within fifteen (15) days, within thirty (30)
          days after such determination, or fails to commence within thirty (30)
          days after such determination and diligently proceed to complete any
          such repairs which cannot reasonably be completed in fifteen (15)
          days, Tenant shall have the right, but not the obligation, to cause
          such repairs to be accomplished. Landlord shall reimburse Tenant for
          all reasonable costs and expenses incurred by Tenant in making the
          repairs, and such reimbursement shall be made within thirty (30) days
          of Landlord's receipt of an invoice for the amount of such costs and
          expenses.  Landlord shall also maintain all common areas of the
          Building (including the Building exterior, landscaping

                                      -12-
<PAGE>

          and parking areas) in first-class condition and repair and consistent
          with the standards for a Class A office building in the Bellevue
          metropolitan area, at Landlord's cost but subject to reimbursement as
          set forth in Section 8 above.

     (f)  Tenant shall, at the expiration or sooner termination of this Lease,
          surrender and deliver the Premises to Landlord in as good or better
          condition as when received by Tenant from Landlord or as thereafter
          improved, reasonable use and wear and damage by fire or other insured
          casualty excepted.

14.  Liens and Insolvency.  Tenant shall keep the Premises and the Building free
     from any liens arising out of any work performed, materials ordered or
     obligations incurred by Tenant.  If Tenant becomes insolvent, voluntarily
     or involuntarily bankrupt, or if a receiver, assignee or other liquidating
     officer is appointed for the business of Tenant, then Tenant shall be
     deemed to be in default under the terms of this Lease and Landlord may, in
     addition to any other remedy provided in this Lease, terminate Tenant's
     right of possession under this Lease at Landlord's option and in no event
     shall the Lease or any rights or privileges hereunder be an asset of Tenant
     under any bankruptcy, insolvency or reorganization proceedings.

15.  Access.  Tenant shall permit Landlord and its agents (including, but not
     limited to any mortgagee holding a mortgage or deed of trust which is an
     encumbrance against the Land) to enter into and upon the Premises but,
     except in an emergency, only on advance reasonable notice and at reasonable
     times for the purpose of inspecting the same or for the purpose of
     repairing, altering or improving the Premises or the Building, with minimum
     interference to Tenant.  Nothing contained in this Section 15 shall be
     deemed to impose any obligation upon Landlord not expressly stated herein
     or elsewhere in this Lease.  Landlord shall, on the same basis, have the
     right to enter the Premises for the purpose of showing the Premises to
     prospective tenants within 270 days prior to the expiration or sooner
     termination of the Lease term.

16.  Damage or Destruction. If the Building or the Premises are destroyed or
     damaged by fire or other casualty insured against under Landlord's fire and
     extended coverage insurance policy to the extent that more than fifty
     percent (50%) of either is rendered untenantable, or if the Building or the
     Premises are destroyed or materially damaged by any other casualty other
     than those covered by such insurance policy, notwithstanding that the
     Premises may be unaffected directly by such destruction or damage, Landlord
     may, at its election, terminate this Lease by notice in writing to Tenant
     within sixty (60) days after such destruction or damage. Such notice will
     be effective thirty (30) days after receipt thereof by Tenant. Landlord
     shall not be required to repair or restore fixtures, improvements, or other
     property of Tenant. If Landlord elects to restore the Premises, then
     Landlord shall so notify Tenant within sixty (60) days after such
     destruction or damage, and shall begin the restoration work within thirty
     (30) days of such date, in which event this Lease will continue in full
     force and effect. If Landlord fails to notify Tenant of its election within
     sixty (60) days after such destruction or damage, then Tenant may terminate
     this Lease immediately upon written notice to Landlord. Tenant may also
     terminate this Lease if the damage or destruction is reasonably anticipated
     to render the Premises untenantable for one hundred eighty (180) days or
     more, or if damage or destruction occurs within the last twelve (12) months
     of the Lease term. Rent and all other amounts owing hereunder shall abate
     for as long as and to the extent the Premises are rendered untenantable as
     a result of any such destruction or damage, unless such damage or
     destruction is due directly or indirectly to the intentional misconduct of
     Tenant or its officers, contractors, licensees, agents, servants,
     employees, guests, invitees or visitors, in which case there will be an
     abatement of rent only to the extent Landlord collects rental loss
     insurance proceeds.

     (a)  Business Interruption.  Other than as provided in this Section 16
          ---------------------
          above, no damages, compensation, or claim shall be payable by Landlord
          to Tenant for inconvenience, loss of business, or annoyance arising
          from any repair or restoration of any portion of the Premises or of
          the Building as a result of fire or other casualty.  Landlord shall
          use its best efforts to effect such repairs promptly.

     (b)  Tenant Improvements and Personal Property.  Landlord will not carry
          -----------------------------------------
          insurance of any kind on Tenant's furniture or furnishings or on any
          other personal property fixtures, equipment, improvements, or
          appurtenances owned or installed by Tenant, and Landlord shall not be
          obligated to repair any damage thereto or replace the same.

                                      -13-
<PAGE>

17.  Indemnification, Insurance and Waiver of Subrogation.

     (a)  Indemnification.  It is understood and agreed that Landlord shall not
          ---------------
          be liable for injury to any person, or for the loss of or damage to
          any property (including property of Tenant) occurring in or about the
          Premises from any cause whatsoever, except for that caused by
          Landlord's negligence, willful misconduct or breach of its obligations
          under this Lease.  Tenant hereby indemnifies and holds Landlord
          harmless from and against and agrees to defend Landlord against any
          and all claims, charges, liabilities, obligations, penalties, causes
          of action; liens, damages, costs and expenses (including attorneys'
          fees) arising, claimed, charged or incurred against or by Landlord
          from any matter or thing arising from Tenant's use of the Premises,
          the conduct of its business or from any activity, work or other thing
          done, permitted or suffered by Tenant in or about the Premises or
          Common Areas, or in connection with the installation, operation,
          maintenance, existence or removal of a satellite dish or antenna and
          related facilities, if any, installed by Tenant on the roof of the
          Building, whether arising from any breach or default in the
          performance of any obligation on Tenant's part or to be performed
          under the terms of this Lease, or arising from any act or negligence
          of Tenant, or any officers, contractor, agent, employee, guest,
          licensee, or invitee of tenant, and from all costs, attorneys' fees,
          and liabilities incurred in or about the defense of any such claim
          (including appeals) or any action or proceeding brought thereon and in
          the event that any action or proceeding is brought against Landlord by
          reason of such claim, except to the extent any of the foregoing is
          caused by the negligence or willful misconduct of Landlord or
          Landlord's breach of its obligations under this Lease.  Tenant, upon
          notice from Landlord, shall defend the same at Tenant's expense by
          counsel reasonably satisfactory to Landlord.  The indemnification
          provided for in this paragraph shall survive any termination or
          expiration of this Lease.  Landlord and its agents shall not be liable
          for any loss or damage to persons or property resulting from fire,
          explosion, falling plaster, steam, gas, electricity, water or rain
          which may leak from any part of the Premises or from pipes, appliances
          or plumbing works therein or from the roof, street or subsurface or
          from any other place resulting from dampness or any other cause
          whatsoever, unless caused by or due to the negligence or willful
          misconduct of Landlord, its agents or employees or Landlord's breach
          of its obligations under this Lease.  Landlord and its agents shall
          not be liable for interference with the light or air to the Premises
          or for any latent defect on the Premises.  Tenant shall give prompt
          notice to Landlord in case of casualty or accidents on or about the
          Premises.  Landlord shall indemnify, defend and hold Tenant harmless
          from all loss, cost, expense and liability arising as a result of
          Landlord's negligence or breach of its obligations under this Lease.

     (b)  Insurance.
          ---------

          (1)  Tenant's Insurance.
               ------------------

               (A)  Liability Coverage.  During the entire Lease Term and at any
                    ------------------
                    time prior to the Lease Term commencing with the day on
                    which possession of the Premises is delivered to Tenant for
                    any reason, Tenant shall, at its own expense, maintain
                    commercial general liability insurance with a reputable
                    insurance company or companies with minimum amounts of Two
                    Million Dollars ($2,000,000) combined single limit per
                    occurrence and in the aggregate for personal injuries and
                    property damage on or about the Premises, or in connection
                    with the installation, operation, maintenance, existence or
                    removal of a satellite dish or antenna and related
                    facilities, if any, installed by Tenant on the roof of the
                    Building, to indemnify both Landlord and Tenant against any
                    such claims, demands, losses, damages, liabilities and
                    expenses.  Landlord and the management company, if any,
                    employed by Landlord with respect to the Building shall be
                    named as additional insureds and shall be furnished with a
                    certificate of insurance which shall bear an endorsement
                    that the same shall not

                                      -14-
<PAGE>

                    be canceled except upon not less than thirty (30) days'
                    prior written notice to Landlord.

               (B)  Property Coverage.  Tenant shall, at its own expense,
                    -----------------
                    maintain during the Lease Term and at any time prior to the
                    Lease Term commencing with the date on which possession of
                    the Premises is delivered to Tenant for any reason,
                    insurance covering its furniture, fixtures, equipment, all
                    leasehold improvements and inventory in an amount equal not
                    less than 100% of the full replacement value thereof as
                    provided by basic form coverage with a special form
                    endorsement.

               (C)  Business Income and Extra Expense Coverage.  Tenant shall
                    ------------------------------------------
                    maintain business income and extra expense coverage at 100%
                    of Tenant's gross revenue for a period of twelve (12)
                    months.

               (D)  Commercial Auto Liability Coverage.  Tenant shall maintain
                    ----------------------------------
                    commercial auto liability insurance with a combined limit of
                    not less than One Million Dollars ($1,000,000) for bodily
                    injury and property damage for each accident.  Such
                    insurance shall cover liability relating to any auto
                    (including owned, hired and non-owned autos).

          (2)  Landlord's Insurance.  Landlord shall procure and maintain
               --------------------
               physical damage insurance covering all real and personal
               property, excluding property paid for by tenants and not
               reimbursed by Landlord or paid for by Landlord for which tenants
               have reimbursed Landlord, located on or in, or constituting a
               part of, the Building in an amount equal to one hundred percent
               (100%) of the replacement value of all such property.  Such
               insurance shall afford coverage for damages resulting from (i)
               perils covered by what is commonly referred to as special form
               insurance (including water damage, but excluding flood), and (ii)
               boilers and machinery coverage as appropriate for apparatus
               located in the Building, and shall include Business Income and
               Extra Expense coverage in such amounts as Landlord reasonably
               deems appropriate.  Landlord shall also procure and maintain
               commercial general liability insurance with broad form general
               liability endorsement covering all claims with respect to
               injuries or damages to persons or property sustained in, on or
               about the Building and the appurtenances thereto, including the
               sidewalks and alleyways adjacent thereto, with limits of
               liability no less than Two Million Dollars ($2,000,000) combined
               single limit per occurrence and in the aggregate.  Such limits
               may be achieved through the use of umbrella liability insurance
               otherwise meeting the requirements of this Section.

     (c)  Increase in Insurance Premium.  Tenant shall not keep, use, sell or
          ------------------------------
          offer for sale in or upon the Premises any article which may be
          prohibited by the form of property insurance policy required to be
          carried under this Lease.  Tenant shall pay any increase in premiums
          for property (including special form coverage) insurance that may be
          charged during the term of this Lease on the amount of such insurance
          which may be carried by Landlord on the Premises, the Building or the
          Property of which the Premises are a part, resulting from Tenant's
          particular use of the Premises, whether or not Landlord has consented
          thereto.  In such event, Tenant shall also pay any additional premiums
          on the insurance policy that Landlord may carry for its protection
          against the loss of business income through property damage.  In
          determining whether increased premiums are the result of Tenant's
          particular use of the Premises, a schedule, issued by the organization
          setting the insurance rate on the Premises, showing the various
          components of such rate, shall be conclusive evidence of the several
          items and charges which make up the property insurance rate on the
          Premises.  Landlord shall deliver bills for such additional premiums
          to Tenant at such times as Landlord may elect, and Tenant shall
          immediately reimburse Landlord therefor.

                                      -15-
<PAGE>

     (d)  Waiver of Subrogation.  Landlord and Tenant hereby mutually release
          ---------------------
          each other from liability and waive all rights of recovery against
          each other for any loss in or about the Premises, from perils insured
          against under their respective property insurance policies, including
          any special form endorsements thereof, whether due to negligence or
          any other cause.  This paragraph shall, however, be inapplicable if it
          would have the effect, but only to the extent it would have the
          effect, of invalidating any insurance coverage of Landlord or Tenant.
          Each of Landlord and Tenant shall, at the request of the other,
          execute and deliver to the other a Waiver of Subrogation in the form
          and content as required by such party's insurance carrier.

     (e)  Companies.  Insurance required hereunder shall be issued by companies
          ---------
          rated A-VII or better in "Bests" Insurance Guide, or such other
          companies approved by Landlord.

     (f)  Certificate of Insurance.  A certificate issued by the insurance
          ------------------------
          carrier for each policy of insurance required to be maintained by
          Tenant under the provisions of this Lease shall be delivered to
          Landlord upon or before the delivery of the Premises to Tenant for any
          purpose, and thereafter within thirty (30) days prior to the
          expiration of the term of each such policy.  Each certificate of
          insurance and each policy of insurance required to be maintained by
          Tenant hereunder shall expressly evidence insurance coverage as
          required by this Lease.  All such policies shall be written as primary
          policies not contributing with and not in excess of coverage which
          Landlord may carry.

18.  Assignment and Subletting.

     (a)  Assignment, Mortgage or Encumbrance.  Except as provided below, Tenant
          -----------------------------------
          shall not voluntarily or by operation of law assign, mortgage or
          otherwise encumber all or any part of Tenant's interest in this Lease
          or in the Premises without obtaining the prior written consent of
          Landlord in each instance, and any attempt to do so without first
          obtaining such consent shall be voidable at the option of Landlord.
          Landlord shall not, however, unreasonably withhold or delay such
          consent, but such consent shall require that such assignee, mortgagee
          or encumbrancer agree to be bound by all of the terms and conditions
          of this Lease.  Notwithstanding any of the foregoing, without the
          consent of Landlord, Tenant may voluntarily or by operation of law
          assign and delegate this Lease to the surviving corporation upon any
          reorganization, merger, consolidation or acquisition of Tenant, and
          Tenant may assign, sublet and delegate this Lease for all or any
          portion of the Premises to its parent company, any wholly-owned
          subsidiary or any affiliate, provided that both Tenant and any such
          assignee shall both be bound by all of the terms and conditions of
          this Lease.  Without in any way limiting the foregoing, Landlord
          hereby specifically approves the acquisition of Tenant, whether
          through merger or otherwise, by Stamps.com, Inc.

     (b)  Sublease.  Tenant shall not sublease the Premises without obtaining
          --------
          the prior written consent of Landlord, which consent of Landlord shall
          not be unreasonably withheld or delayed, and which consent shall
          require that such sublessee agree to be bound by all of the terms and
          conditions of this Lease applicable to such subleased space.

     (c)  Requirements for Request for Assignment or Sublease; Standards for
          ------------------------------------------------------------------
          Consent.  In the event Tenant desires to assign this Lease or sublet
          -------
          the Premises or any part hereof, Tenant shall give Landlord written
          notice at least thirty (30) days in advance of the date on which
          Tenant desires to make such assignment or sublease, which notice shall
          specify: (a) the name, address and business of the proposed assignee
          or sublessee, (b) the amount and location of the space affected, (c)
          the proposed effective date and duration of the sublease or
          assignment, and (d) current financial statements of the proposed
          assignee or sublessee.  Each request for an assignment or subletting
          must be accompanied by a Processing Fee, equal to no less than Five
          Hundred Dollars ($500.00) plus reasonable legal fees, in order to
          reimburse Landlord for expenses incurred in connection with such
          request.

                                      -16-
<PAGE>

          In reviewing any request for an assignment of Tenant's interest under
          this Lease or a sublease of the Premises or a portion thereof,
          Landlord may take into consideration the credit-worthiness of the
          proposed assignee or sublessee, the purpose for which the proposed
          assignee or sublessee will use the Premises, and whether the proposed
          assignee or sublessee is anticipated to require parking in excess of
          the parking allocated to Tenant under this Lease. Use and occupancy of
          the Premises or any portion thereof by an assignee or sublessee will
          be consistent with operation and maintenance of a First Class office
          building and will not be in conflict with any other Lease in the
          Building. Consent to one assignment, subleasing or other transfer
          shall not be deemed to constitute consent to any subsequent
          assignment, subleasing or other transfer of Tenant's interest in this
          Lease. Except as expressly provided herein, no such assignment or
          sublease shall relieve Tenant of any liability under this Lease
          regardless of whether such liability arises by or through Tenant.
          Assignment or subletting shall not operate as a waiver of the
          necessity for a written consent to any subsequent assignment or
          sublease, and the terms of such consent shall be binding upon any
          person holding by, under or through Tenant.

     (d)  Rent from Assignee or Sublessee.  In the event of any sublease or
          -------------------------------
          assignment to which Landlord's consent is requested and given,
          Landlord and Tenant shall share on an equal basis the rent paid by
          Tenant's sublessee or assignee which is in excess of the rent due
          under this Lease, on a per rentable square foot basis, after deducting
          all of Tenant's out-of-pocket costs incurred in connection with such
          sublease or assignment, including commissions, improvements and
          leasing concessions, which costs shall be amortized over the term of
          the sublease or assignment.  Landlord may, at its election, collect
          rent directly from such assignee, and in the event of a default
          hereunder by Tenant, from any sublessee.

     (e)  Landlord's Right to Recapture the Premises.  Except as set forth in
          ------------------------------------------
          the last sentence of this Section 18(e), with respect to any requested
          subletting or assignment requiring Landlord's consent, Landlord may,
          by written notice to Tenant, elect to terminate this Lease with
          respect to, and recapture from Tenant, that portion of the Premises
          specified in the request for sublease or assignment, as of the
          proposed effective date of the sublease or assignment.  In such event,
          the area of the Premises, as defined in this Lease, shall be decreased
          by the portion of the Premises specified in such request, and the
          monthly base rent, Tenant's Percentage of the Building and all other
          amounts in this Lease based on the area of the Premises shall be
          reduced appropriately.  If Tenant requests Landlord's consent to a
          sublease of the Premises, Landlord shall not have the right to
          recapture that portion of the Premises specified in the request for
          sublease unless the term of the sublease extends into the last twelve
          (12) months of the then-current term of this Lease, as extended from
          time to time.

19.  Holdover.  If Tenant, without the written consent of Landlord, holds over
     after the expiration or termination of the term of this Lease, Tenant shall
     be deemed to be occupying the Premises on a month-to-month tenancy, which
     tenancy may be terminated as provided by the laws of the State of
     Washington.  During such tenancy, Tenant agrees to pay to Landlord rent
     equal to one hundred fifty percent (150%) of the rent as set forth herein,
     unless a different rate shall be agreed upon, and to be bound by all of the
     terms, covenants and conditions herein specified, so far as applicable.

20.  Surrender of Premises. Upon the expiration or sooner termination of the
     term of this Lease, whether by lapse of time or otherwise, Tenant shall
     promptly and peacefully surrender the Premises to Landlord, and shall
     return to Landlord all keys thereto.

21.  Removal of Property.  Upon the expiration or sooner termination of this
     Lease, Tenant may remove its trade fixtures, office supplies and movable
     office furniture and equipment provided (a) such removal is made prior to
     the termination or expiration of this Lease, (b) Tenant is not in default
     under any provision of this Lease beyond any applicable notice and cure
     periods at the time of such removal, and (c) Tenant immediately repairs all
     damage caused by or resulting from such removal.  If Tenant has, in
     connection with its lease of the Premises, elected to upgrade the generator
     that Landlord would otherwise have

                                      -17-
<PAGE>

     provided to operate the life safety systems of the Building, then upon the
     expiration or sooner termination of this Lease, Landlord may retain such
     generator by paying to Tenant the depreciated value of the generator based
     on a fifteen (15) year useful life and the actual cost of such generator,
     including sales tax, less the amount that would be the depreciated value of
     the generator based on a fifteen (15) year useful life and a purchase price
     of $64,000.00 plus sales tax. All other property in the Premises and any
     alterations or additions thereto (including, without limitation, wall-to-
     wall carpeting, paneling, wall covering, or lighting fixtures and
     apparatus) and any other article affixed to the floor, wall or ceiling of
     the Premises shall become the property of Landlord and shall remain upon
     and be surrendered with the Premises, Tenant hereby waiving all rights to
     any payment or compensation therefor. If, however, Landlord so requests in
     writing, Tenant shall, upon termination of this Lease, remove such
     alterations, additions, fixtures, equipment and property placed or
     installed by Tenant in the Premises subsequent to the completion of the
     tenant improvements to be made pursuant to Exhibit E and to which Landlord
                                                ---------
     withheld its consent under the terms of Section 13 above, and shall
     immediately repair any damage caused by or resulting from such removal to
     the condition of the Premises prevailing upon commencement of this Lease,
     reasonable wear and tear excepted.

     If Tenant fails to remove any of its property of any nature whatsoever from
     the Premises or the Building at the termination of this Lease or when
     Landlord has the right of reentry, Landlord may, at its option, remove and
     store said property without liability for loss thereof or damage thereto,
     such storage to be for the account and at the expense of Tenant. If Tenant
     does not pay the cost of storing any such property after it has been stored
     for a period of thirty (30) days or more, Landlord may, at its option, sell
     or permit to be sold any or all of such property at public or private sale
     (and Landlord may become a purchaser at such sale), in such manner and at
     such times and places as Landlord in its reasonable discretion may deem
     proper without notice to Tenant, and shall apply the proceeds of such sale:
     first, to the cost and expense of such sale, including reasonable
     attorneys' fees actually incurred; second, to the payment of the costs or
     charges for storing any such property; third, to the payment or any other
     sums of money which may then be or thereafter become due Landlord from
     Tenant under any of the terms hereof; and fourth, the balance, if any, to
     Tenant.

22.  Defaults.

     (a)  Tenant's Defaults.  Time is of the essence hereof, and in the event
          -----------------
          Tenant violates or breaches or fails to keep or perform any covenant,
          agreement, term or condition of this Lease, and if such default or
          violation continues or is not remedied within five (5) business days
          (or, if no default in the payment of money is involved, then within
          twenty (20) days, or if such breach cannot be cured within twenty (20)
          days, then Tenant commences a cure within twenty (20) days and
          thereafter diligently prosecutes such cure to completion) after notice
          in writing thereof is given by Landlord to Tenant specifying the
          matter claimed to be in default, or if Tenant abandons or vacates the
          Premises or any significant portion thereof, Landlord, at its option,
          may immediately declare Tenant's rights under this Lease terminated,
          and reenter the Premises using such force as may be necessary, and
          repossess itself thereof, as of its former estate, and remove all
          persons and property from the Premises.  Notwithstanding any such
          reentry, the liability of Tenant for the full payment of rent and
          other amounts owed hereunder or provided for herein shall not be
          extinguished for the balance of this Lease, and Tenant shall make good
          to Landlord any deficiency arising from a reletting of the Premises at
          a lesser rent, plus the reasonable costs and expenses of renovating,
          altering and reletting the Premises, including attorneys' fees or
          brokers' fees incident to Landlord's reentry or reletting.  Tenant
          shall pay any such deficiency each month as the amount thereof is
          ascertained by Landlord or, at Landlord's option, Landlord may
          recover, in addition to any other sums, the amount at the time of
          judgment by which the unpaid rent for the balance of the term after
          judgment exceeds the amount of rental loss which Tenant proves could
          be reasonably avoided, discounted at the then Federal Discount Rate
          less three percent (3%).  The calculation of any amount of rental loss
          which Tenant claims could be reasonably avoided shall take into
          account those sums which are reasonably anticipated to be expended by
          Landlord for tenant improvements, moving expenses, lease assumption
          costs, real estate commissions, and all other

                                      -18-
<PAGE>

          costs associated with reletting the Premises. In reletting the
          Premises, Landlord may grant rent concessions and Tenant shall not be
          credited therefor. Nothing herein shall be deemed to affect the right
          of Landlord to recover for indemnification under Section 17 herein
          arising prior to the termination of this Lease, or for any other
          remedy at law or in equity. Landlord shall make reasonable efforts to
          mitigate its damages in the event of Tenant's default.

     (b)  Landlord's Defaults.  If Landlord fails to keep and perform any
          -------------------
          covenants and agreements herein contained, and if after written notice
          from Tenant specifying such default and permitting Landlord at least
          thirty (30) days (except in the event of an emergency or a situation
          affecting the tenantable condition of the Premises, in which case
          Landlord will be permitted a reasonable time under the circumstances)
          to remedy same Landlord has failed to remedy such default, then Tenant
          may, but shall not be obligated to, remedy such default.  Landlord
          shall reimburse Tenant for all reasonable costs and expenses incurred
          by Tenant in remedying such default, and such reimbursement shall be
          made within thirty (30) days of Landlord's receipt of an invoice for
          the amount of such costs and expenses.  All rights and remedies of
          Tenant under this Lease are cumulative and are not exclusive of any
          other rights and remedies provided to Tenant under applicable law.

23.  Right to Perform.  If Tenant fails to pay any sum of money, other than
     rent, required to be paid by it hereunder or fails to perform any other act
     on its part to be performed hereunder, and such failure continues for five
     (5) business days after written notice thereof by Landlord, or such shorter
     time if reasonable under the circumstances, Landlord may, but shall not be
     obligated so to do, and without waiving or releasing Tenant from any
     obligations of Tenant, make any such payment or perform any such other act
     on Tenant's part to be made or performed as provided in this Lease.
     Landlord shall have (in addition to any other right or remedy of Landlord)
     the same rights and remedies in the event of the nonpayment of sums due
     under this section as in the case of default by Tenant in the payment of
     rent.

24.  Nonwaiver.  Waiver by Landlord or Tenant of any breach of any term,
     covenant, or condition herein contained shall not be deemed to be a waiver
     of any subsequent breach of the same or any other term, covenant or
     condition herein contained.  The subsequent acceptance of rent hereunder by
     Landlord shall not be deemed to be a waiver of any preceding breach by
     Tenant of any term, covenant, or condition of the Lease, other than the
     failure of Tenant to pay the particular rent so accepted, regardless of
     Landlord's knowledge of such preceding breach at the time of acceptance of
     such rent.

25.  Costs and Attorneys' Fees.  In the event of any action or proceeding
     arising out of or in connection with this Lease, the substantially
     prevailing party shall be entitled to all costs, expenses and reasonable
     attorneys' fees, with or without suit and on appeal.

26.  Priority.  Tenant agrees that this Lease will be subordinate to any
     mortgage, deed of trust or other lien covering the Premises, upon and
     subject to the following terms and conditions: Tenant's subordination
     hereunder is expressly conditioned on execution and delivery to Tenant by
     each mortgagee, each lienholder and each beneficiary of a deed of trust, of
     a nondisturbance agreement reasonably acceptable to Tenant.  Such agreement
     shall be in a form typically used for commercial tenancies, shall be in
     recordable form and shall recognize Tenant's rights under this Lease in the
     event Landlord's interest is terminated while this Lease is in full force
     and effect.  Such nondisturbance agreement shall include, among other
     things, a provision to the effect that in the event of a termination of the
     ground or underlying lease or foreclosure of the mortgage, deed of trust or
     other lien in favor of said secured party, or upon a sale of the property
     encumbered thereby pursuant to the trustee's power of sale contained
     therein, or upon a transfer of the Building or the Premises by deed in lieu
     of foreclosure, then for so long as Tenant is not in material default under
     the terms, covenants, and conditions of this Lease, this Lease shall
     continue in full force and effect as a direct lease between the owner or
     succeeding owner of the Premises or the Building (as appropriate), as
     Landlord, and Tenant for the balance of the term of this Lease, upon and
     subject to all of the terms, covenants and conditions of this Lease.  Such
     nondisturbance agreement shall not include any terms which are inconsistent
     with the terms of this Lease or which adversely affect Tenant's rights or
     increase Tenant's obligations under this Lease.  Tenant's obligations under
     this Lease are conditioned upon Landlord

                                      -19-
<PAGE>

     obtaining, simultaneously with the execution of this Lease, a
     nondisturbance agreement from all mortgagees currently holding liens on the
     Property.

     Upon request by Landlord or the landlord under a ground lease or an
     underlying lease, or the holder of any mortgage, lien or deed of trust now
     existing or that may hereafter be placed upon the Land, Premises or the
     Building, Tenant will promptly execute a Subordination, Attornment, Notice
     and Non-Disturbance Agreement substantially in the form attached as Exhibit
                                                                         -------
     J to this Lease, as it may be amended by Landlord's mortgagee.
     -

27.  Estoppel Certificates.  Landlord and Tenant shall, at any time and from
     time to time during any term of the Lease, upon not less than fifteen (15)
     days' prior written request from the other, execute, acknowledge and
     deliver to the other or its designee a statement in writing certifying: (1)
     the date this Lease was executed and the date it expires; (2) the date of
     occupancy; (3) the amount of minimum monthly rent and the date to which
     such rent has been paid; (4) that this Lease is unmodified and in full
     force and effect (or, if modified, stating with specificity the nature of
     such modification); (5) that this Lease represents the entire agreement
     between the parties as to this leasing; (6) that there is not, to its
     knowledge, any default by the other hereunder, or, if any default is
     alleged, then specifying such default; (7) that on that date there are no
     existing defenses or offsets which that party has against the enforcement
     of this Lease by the other; and (8) that no security has been deposited
     with Landlord (or, if so, the amount thereof).  Any such statement shall be
     provided by the party requesting its completion, and such statement may be
     conclusively relied upon by any prospective purchaser or encumbrancer of
     the Premises or assignee or encumbrancer of Tenant's interest under this
     Lease.  In the event of the failure to deliver such statement within such
     time, the requested party shall be conclusively deemed to have admitted the
     accuracy of any information supplied by the requestor to a prospective
     purchaser or mortgagee related to any of the matters described in (1)
     through (8) above, and such admission may be conclusively relied upon by
     any prospective purchaser or encumbrancer of the Premises or assignee or
     encumbrancer of Tenant's interest under this Lease.

28.  Transfer of Landlord's Interest.  This Lease is assignable by Landlord
     without the consent of Tenant.  In the event of any transfer or transfers
     of Landlord's interest in the Premises or the Building, other than a
     transfer for security purposes only, the transferor will be automatically
     relieved of any and all obligations and liabilities on the part of Landlord
     accruing from and after the date of such transfer, and Tenant agrees to
     attorn to the transferee, providing such transferee assumes the obligations
     of Landlord under this Lease.

29.  Condemnation.  If all of the Premises, or such portions of the Building as
     may be required for the reasonable use of the Premises, are taken by
     eminent domain, this Lease will automatically terminate as of the date
     Tenant is required to vacate the Premises and all rents will be paid to
     that date.  In case of a taking of a part of the Premises equal to less
     than twenty percent (20%) of the floor area, or a portion of the Building
     not required for the reasonable use of the Premises, this Lease will
     continue in full force and effect and the rent will be equitably reduced
     based on the proportion by which the floor area of the Premises is reduced,
     such rent reduction to be effective as of the date possession of such
     portion is delivered to the condemning authority.  In case of a taking of a
     part of the Premises equal to twenty percent (20%) or more of the floor
     area, Tenant may elect to terminate this Lease.  Landlord reserves all
     rights to receive monetary damages to the Premises for any taking by
     eminent domain, and Tenant hereby assigns to Landlord any right Tenant may
     have to such damages or award; and Tenant shall make no claim against
     Landlord for damages for termination of the leasehold interest or
     interference with Tenant's business.  Tenant shall have the right, however,
     to claim and recover from the condemning authority compensation for any
     loss to which Tenant may be put for Tenant's moving expenses, provided that
     such damages may be claimed only if they are awarded separately in the
     eminent domain proceedings and not as part of the damages recoverable by
     Landlord.

30.  Advertising.  Tenant shall not inscribe any inscription, or post, place or
     in any manner display any sign, notice, picture, placard or poster, or any
     advertising matter whatsoever, anywhere in or about the Premises or the
     Building at places visible (either directly or indirectly as an outline or
     shadow on a glass pane) from anywhere outside the Premises without first
     obtaining Landlord's written consent thereto, which consent

                                      -20-
<PAGE>

     shall not be unreasonably withheld. Any such consent by Landlord shall be
     upon the understanding and condition that Tenant, at its sole cost and
     expense, will remove the same at the expiration or sooner termination of
     this Lease and will repair any damage to the Premises or the Building
     caused thereby. Notwithstanding the foregoing, Landlord hereby grants
     Tenant the non-exclusive right to install signs on the monument sign
     adjacent to the Building. Tenant's right to do so is subject to City of
     Bellevue regulations, the installation being completed in a good and
     workmanlike manner, and Landlord's review and approval of the design and
     location of the signs, which approval shall not be unreasonably withheld.
     The design, construction, installation and removal of all signs is at the
     sole cost and expense of Tenant.

31.  Exterior Signage. So long as Tenant occupies a minimum of three (3) full
     floors in the Building, Tenant shall have the sole and exclusive right to
     install signage on the north and west sides of the exterior of the
     Building, subject to Landlord's reasonable approval and all applicable
     codes. All costs associated with installing exterior signage on the
     Building shall be borne by Tenant. Tenant may, however, include the cost of
     installing exterior signage on the Building as an item for which payment is
     to be made from the Tenant Improvement Allowance (defined in Section 33
     below).

32.  Parking. Parking shall at all times be governed by reasonable rules and
     regulations established by Landlord, which may be changed with reasonable
     discretion from time to time.  Such rules and regulations shall not be
     inconsistent with the terms and conditions of this Lease and shall be
     enforced against all parking users in a non-discriminatory fashion.

     From 7:00 a.m. to 6:00 p.m., Monday through Friday, except for legal
     holidays, during the term of this Lease, as it may be extended, Landlord
     shall provide parking at a ratio of four (4) spaces per one thousand
     (1,000) rentable square feet of the Premises on a non-exclusive basis in
     the below ground and surface parking lots located on the real property
     comprising the Project and on which the 12600 Building is located.  A plan
     showing the parking available for the Project and the 12600 Building is
     attached hereto as Exhibit K.  Such parking shall be provided by Landlord
                        ---------
     at no additional charge during the Initial Lease Term (except for the
     payment of any parking tax subsequently imposed by a governmental
     authority), Landlord represents and warrants to Tenant that Landlord is
     unable to provide parking to Tenant on an exclusive basis at any time
     during the Lease term. If Tenant experiences a problem with the parking at
     the Building such that Tenant's allotted parking spaces are unavailable to
     it on a consistent basis, and so informs Landlord, then Landlord shall take
     such measures, such as monitoring or valet parking, as are reasonably
     necessary to correct the problem, and such expenses shall be charged to
     Tenant as Additional Rent. Tenant acknowledges that the parking lot is used
     and may be used jointly by other tenants under a parking access agreement
     managed by Landlord.

33.  Tenant Improvements.

     (a)  Tenant Improvement Allowance.  Landlord agrees to provide an allowance
          ----------------------------
          of up to Two Million Three Hundred Twenty-five Thousand Seven Hundred
          Sixty-five Dollars ($2,325,765.00) (the "Tenant Improvement
          Allowance") to assist Tenant in the build-out of the tenant
          improvements for the Premises (the "Tenant Improvements").   The
          Tenant Improvement Allowance is calculated by multiplying the agreed
          floor area of the Premises, in usable square feet (71,562) by $32.50.
          The Tenant Improvement Allowance may be adjusted based on the actual
          floor area of the Premises.  In addition to its use toward the hard
          costs of constructing the Tenant Improvements, the Tenant Improvement
          Allowance may be used for space planning and design, the cost of
          building permits, Washington State Sales Tax, cabling and wiring for
          the Premises and exterior building signage.  Tenant expressly assumes
          responsibility for the cost and payment of any portion of the Tenant
          Improvements that are in excess of the Tenant Improvement Allowance.

          Tenant may, by written notice delivered to Landlord no later than
          September 1, 2000, elect to amortize the cost of Tenant Improvements
          that are in excess of the Tenant Improvement Allowance, up to an
          additional $12.50 per usable square foot of the agreed floor area of
          the Premises, on a

                                      -21-
<PAGE>

          straight-line basis over a term of eight (8) years and based on an
          interest rate equal to Landlord's permanent loan rate on the Building
          plus one percent (1%); provided, however, that until such time as
          Landlord's permanent loan on the Building is in place, such
          amortization shall be based on the Bank of America prime rate plus one
          percent (1%). If Tenant elects to have any portion of cost of Tenant
          Improvements that are in excess of the Tenant Improvement Allowance
          amortized, as provided by the terms of the preceding sentence, then
          Tenant shall execute a promissory note in the form of Exhibit L
                                                                ---------
          attached to this Lease (the "TI Note"), evidencing a loan payable to
          Landlord for such amount. The monthly payments due under the TI Note
          shall be additional rent due under this Lease, and shall be added to
          the monthly base rent due from Tenant to Landlord under the terms of
          Section 1(f) above.

     (b)  Plans for Tenant Improvements.  Landlord and Tenant shall mutually
          -----------------------------
          agree on the selection of the architect (the "Architect") to plan,
          design and complete the construction documents for the Tenant
          Improvements, such approval not to be unreasonably withheld or
          delayed. Landlord shall pay for the cost of an initial "test fit" for
          one floor of the Premises by providing to Tenant an allowance of Two
          Thousand Seven Hundred Seventy-five Dollars ($2,775.00). Such
          allowance shall be a part of, and not in addition to, the Tenant
          Improvement Allowance set forth in Section 33(a) above. Prior to
          Landlord commencing work on the Tenant Improvements, Tenant shall
          submit to Landlord two (2) copies of plans detailing the design and
          plan of improvements prepared by the Architect. Landlord shall either
          approve or disapprove plans within ten (10) days and, if approved,
          return a signed, approved copy to Tenant. In the event that Landlord
          does not approve the plans, Landlord shall inform Tenant of the
          reasons for its disapproval and Tenant shall have ten (10) days in
          which to submit revised plans to Landlord for approval. Tenant shall
          not unreasonably refuse to satisfy any objections made by Landlord to
          the plans and specifications. Any objections Tenant has to Landlord's
          objection shall be submitted to Landlord in writing within the ten
          (10) day period. A failure of one party to give any notice to the
          other party within the ten (10) day period shall be deemed to
          constitute approval of the plans and specifications or the objections
          thereto, as appropriate. Landlord shall not unreasonably withhold or
          delay its approval of Tenant's plans for Tenant Improvements.

     (c)  Construction of Tenant Improvements.  Upon Landlord's approval of
          -----------------------------------
          Tenant's plans, Landlord shall enter into a construction contract with
          Gall Landau Young ("GLY") for the construction of the Tenant
          Improvements.

          Landlord will guaranty the delivery dates for the Premises, on a floor
          by floor basis, set forth in Section 1(e) above, and shall be subject
          to the penalties set forth in Section 40 for failure to so deliver the
          Premises, if Tenant complies with the following dates regarding
          delivery of items necessary for construction of the Tenant
          Improvements:

          (1)   March 15, 2000:      begin preparation of design and drawings
                                     for the Tenant Improvements;
          (2)   June 1, 2000:        submit the plans for Tenant Improvements to
                                     the City of Bellevue for a preliminary
                                     permit;
          (3)   July 1, 2000:        finalize construction drawings for the
                                     Tenant Improvements; and
          (4)   August 10, 2000:     approval of bid price for construction of
                                     the Tenant Improvements by Landlord and
                                     Tenant, which approval shall not be
                                     unreasonably withheld.

          If Tenant does not comply with the dates set forth above, then the
          dates for delivery of the Premises set forth in Section 1(e) above
          shall, on a floor-by-floor basis, be moved back one day for each day
          that Tenant fails to meet its delivery date for any item.

         The construction of all improvements to be made on the Premises shall
         be performed in a first-class, workmanlike manner, in conformity with
         all applicable governmental laws, ordinances, rules, orders,
         regulations and other requirements, and in substantial accordance with
         plans and specifications.

         Tenant or Tenant's agents shall have the right to inspect the
         construction of the Tenant Improvements during the progress thereof at
         Tenant's sole cost and expense and at times

                                      -22-
<PAGE>

         coordinated with Landlord and GLY. If, during the progress of
         construction of the Tenant Improvements, Tenant desires to have any
         changes made to the approved plans and specifications, then Landlord
         shall cause GLY to prepare and deliver to Tenant's designated
         representative a change order showing the cost therefor and the
         additional time necessary for substantial completion of the Tenant
         Improvements, if any. Tenant shall promptly inform Landlord and GLY
         whether such change order has been approved by Tenant. The dates for
         delivery of the Premises set forth in Section 1(e) above shall, on a
         floor-by-floor basis, be moved back one day for each additional day
         that a change order approved by Tenant will require.

34.  Tenant's Approval Regarding Construction and Design of Building.  Tenant
     has reviewed and approved the plans and specifications for the Building, as
     the same are described on Exhibit D attached hereto (the "Building Plans").
                               ---------
     With respect to any material changes to material design elements that
     Landlord desires to make to the Building Plans, Landlord shall notify
     Tenant of the nature of such material changes, and Tenant shall, within
     three (3) business days after receipt of such notice, inform Landlord
     whether it approves such material changes.  Tenant shall not unreasonably
     withhold its consent to any material change to the Building Plans.
     Additionally, if the Building Plans are not specific as to some of the
     material design elements of the Building, then Landlord shall consult with
     Tenant and obtain Tenant's approval with respect thereto.  Tenant shall not
     unreasonably withhold its consent to Landlord's plans for any material
     design elements of the Building.

35.  Installation of Satellite Dishes on Roof of Building.  Landlord hereby
     grants to Tenant, for no additional rent during the term of this Lease, as
     it may be extended, the exclusive use of up to fifty percent (50%) of the
     usable area of the roof of the Building on which to install and maintain
     satellite dishes and/or antennas, as shown by the cross-hatched area on
     Exhibit M-1 attached to this Lease.  If at any time during the Lease term,
     -----------
     Tenant occupies less than two (2) full floors of the Building, then the
     usable area of the roof designated for Tenant's exclusive use and for no
     additional rent shall decrease to twenty-five percent (25%) of the usable
     area of the roof of the Building, as shown by the cross-hatched area on
     Exhibit M-2 attached to this Lease.  The right to use the roof for the
     -----------
     installation and maintenance of satellite dishes and/or antennas is
     personal to Tenant (or Tenant's successor-in-interest through merger), and
     Tenant may not sublet or assign its right to use the roof of the Building,
     except to an assignee approved by Landlord or to a sublessee occupying at
     least 10,000 rentable square feet of the Premises, in which case Tenant may
     grant to such sublessee the right to use a pro rata share of Tenant's area
     of the roof.  The installation and maintenance of such satellite dishes
     and/or antennas shall be at Tenant's sole cost and expense, and is
     conditioned on Tenant's (and any sublessee's) compliance with the terms of
     that certain Communications Site Lease attached as Exhibit N to this Lease.
                                                        ---------

36.  Fifth Floor Hold Period.  Landlord shall not, for the period commencing
     upon the execution of this Lease and expiring as of 11:59 p.m. on October
     2, 2000, market for lease the premises comprised of the Fifth Floor of the
     Building.

37.  Terms Applicable to Expansion of Premises During Initial 12 Months.  If
     Tenant and Landlord, prior to the expiration of twelve (12) months
     following the first Commencement Date under this Lease, enter into any
     agreement to expand the Premises such that the Premises will consist of
     space in the Building in addition to the floor area of the first, second,
     third and fourth floors, then such additional floor area shall be added to
     the Premises on the same terms and conditions as are contained in this
     Lease, including all economic terms set forth herein, and the lease term
     with respect to such additional floor area shall expire on the expiration
     date of the Initial Lease Term.  If Tenant elects to amortize the cost of
     Tenant Improvements in excess of the Tenant Improvement Allowance
     applicable to any expansion space, up to an additional $12.50 per usable
     square foot, then Tenant shall provide written notice to Landlord of its
     election by October 1, 2001, and execute a promissory note in the form of
     the TI Note evidencing a loan payable to Landlord for such amount.  The
     monthly payments due under the TI Note shall be calculated based on the
     then-remaining portion of the 8-year period of any TI Note executed
     pursuant to the terms of Section 33(a) above, shall be additional rent due
     under this Lease, and shall be added to the monthly base rent due from
     Tenant to Landlord under the terms of Section 1(f) above.

                                      -23-
<PAGE>

38.  Tenant's Right of First Offer.

     (a)  Right of First Offer.  Landlord hereby grants to Tenant, during the
          --------------------
          Initial Lease Term, a continuing right of first offer (the "Right of
          First Offer") to lease all available space in the Building, whether
          such space is currently available or becomes available during the
          Initial Lease Term.  In the event any space becomes available to
          lease, Landlord shall provide Tenant with a written notice of
          availability (the "Availability Notice").  The Availability Notice
          shall identify the space (the "ROFO Space"), the date on which it will
          be available, and the economic terms applicable to the ROFO Space
          (which economic terms shall be determined in accordance with Section
          37 above if the Availability Notice either may or must be accepted by
          Tenant prior to the expiration of the twelve (12) month period
          following the first Commencement Date under this Lease).  Tenant shall
          have ten (10) business days following receipt of the Availability
          Notice in which to exercise its Right of First Offer by giving written
          notice of such exercise to Landlord.  If Tenant exercises its Right of
          First Offer within ten (10) business days following receipt of the
          Availability Notice or under the terms of Section 37 above, as
          applicable, then Landlord and Tenant shall promptly enter into an
          amendment to this Lease adding the ROFO Space to the Premises as of
          the date of availability and on the terms specified in the
          Availability Notice.  If Tenant fails to exercise its Right of First
          Offer within ten (10) business days following receipt of the
          Availability Notice, then Landlord may lease the ROFO Space to third
          parties on terms and conditions equal to not less than ninety-five
          percent (95%) of the economic value of the terms proposed to Tenant.
          If Landlord desires submit to an offer to a third party, or receives
          an offer from a third party that it is willing to accept, and the
          economic value of such offer is less than ninety-five percent (95%) of
          that last offered to Tenant, or if Landlord has not entered into a
          binding lease for such space within six (6) months after the
          Availability Notice for such space was delivered to Tenant, then
          Tenant shall again have a Right of First Offer with respect to such
          space and the new economic terms.

     (b)  Expansion of Right of First Offer to Other Buildings.  At such time as
          ----------------------------------------------------
          (1) the Premises are comprised of more than 70,000 rentable square
          feet, or (2) Tenant cannot, based on the remaining space available
          within the Building, expand by at least 10,000 rentable square feet
          within the Building, then the Right of First Offer set forth in
          Section 38(a) above shall also apply to (i) space available for lease
          in Sterling Plaza I, and (ii) any spaces in excess of 5,000 square
          feet available for lease in the 12600 Building (even if a portion of
          such space containing less than 5,000 square feet is offered to third
          parties), subject only to rights of existing tenants in Sterling Plaza
          I and the 12600 Building that are in existence as of the date of this
          Lease.

     (c)  Termination of Rights.  Tenant's Right of First Offer shall terminate
          ---------------------
          if: (1) Tenant assigns its interest in this Lease to a party other
          than a successor-in-interest by merger or reorganization; or (2)
          Tenant subleases a portion of the Premises constituting either (A)
          more than thirty-three percent (33%) of the then-existing floor area
          of the Premises, or (B) more than 44,000 rentable square feet, unless
          in either of cases (A) or (B) above such sublease(s) is/are for a term
          of two (2) years or less.

39.  Option to Cancel Lease.

     (a)  Tenant's Option to Cancel.  Subject to delays by Tenant or Tenant's
          -------------------------
          agents and delays due to labor disputes, fire, adverse weather, force
          majeure events or other causes that are beyond Landlord's control,
          Landlord hereby grants to Tenant the option to cancel this Lease (the
          "Option to Cancel") following the occurrence of any of the following:
          (1) Tenant fails to merge with Stamps.com, Inc. on or before March 10,
          2000; (2) Landlord fails to obtain a building permit for the Building
          from the City of Bellevue on or before March 21, 2000; (3) Landlord
          has not commenced construction of the Building on or before April 1,
          2000 (such commencement being defined as the beginning of excavation);
          or (4) the Building and Premises (including Tenant Improvements) are
          not

                                       24
<PAGE>

          substantially complete by April 1, 2001. Tenant shall exercise its
          Option to Cancel by giving written notice to Landlord specifying the
          event giving rise to Tenant's Option to Cancel.

     (b)  Landlord's Option to Cancel.  Landlord may, by giving written notice
          ---------------------------
          to Tenant, cancel this Lease if either (1) Tenant fails to merge with
          Stamps.com, Inc. on or before March 10, 2000; (2) Landlord has not
          obtained a building permit for the Building from the City of Bellevue
          on or before the date that is two (2) weeks following the date on
          which Tenant informs Landlord in writing that the merger with
          Stamps.com, Inc. has occurred.

     (c)  Effect of Cancellation of Lease.  If either party validly exercises
          -------------------------------
          its option to cancel this Lease under this Section 39, then neither
          party shall have any further rights or obligations hereunder (except
          those obligations which expressly survive the expiration or
          termination of this Lease), and Landlord shall promptly return to
          Tenant any prepaid rent or security instrument previously given by
          Tenant to Landlord in connection with this Lease.  Tenant acknowledges
          that it will, in such event, be responsible for the cost of any
          drawings prepared or permits obtained in connection with the Tenant
          Improvements.

40.  Delay in Lease Commencement; Additional Options to Cancel Lease.

     (a)  Rent Credit for Delay in Lease Commencement.  If neither Landlord nor
          -------------------------------------------
          Tenant has exercised its option to cancel this Lease as set forth in
          Section 39 above, and taking into account on a day-for-day basis any
          delays caused by Tenant or Tenant's agents under Section 33 above or
          otherwise, labor disputes, fire, adverse weather, force majeure events
          or other causes that are beyond Landlord's control, the Premises
          (including the Tenant Improvements) are not substantially complete by:

          (1)  April 1, 2001, then for each day after April 1, 2001, and through
               April 30, 2001, that the Building and the Premises, on a floor-
               by-floor basis, are not substantially complete, Tenant shall, on
               a floor-by-floor basis, receive a rent credit equal to one-half
               day's rent for each floor of the Premises not yet delivered; and

          (2)  April 30, 2001, then for each day after April 30, 2001, that the
               Building and the Premises, on a floor-by-floor basis, are not
               substantially complete, Tenant shall, on a floor-by-floor basis,
               receive a rent credit equal to one day's rent for each floor of
               the Premises not yet delivered.

          In no event, however, shall the amount of the rent to be credited to
          Tenant under this Section 40(a) exceed Five Hundred Thousand Dollars
          ($500,000.00).

  (b) Additional Options to Cancel Lease.
      ----------------------------------

          (1)  Tenant's Additional Option to Cancel.  If, for any reason other
               ------------------------------------
               than delays caused by Tenant, Tenant is unable to occupy the
               entire Premises (except any portions added to the original
               Premises under the terms of Sections 37 and 38 above) by December
               31, 2001, then Tenant may, by written notice to Landlord so
               stating, cancel this Lease.

          (2)  Landlord's Additional Option to Cancel.  If, due to any delays in
               --------------------------------------
               completing Landlord's work that are outside of Landlord's
               control, Tenant is unable to occupy the entire Premises (except
               any portions added to the original Premises under the terms of
               Sections 37 and 38 above) by December 31, 2001, then Landlord
               may, by written notice to Tenant so stating, cancel this Lease.

          (3)  Effect of Cancellation of Lease.  If either party validly
               -------------------------------
               exercises its option to cancel this Lease under this Section
               40(b), then neither party shall have any further rights or

                                       25
<PAGE>

               obligations hereunder (except those obligations which expressly
               survive the expiration or termination of this Lease), and
               Landlord shall promptly return to Tenant any prepaid rent or
               security instrument previously given by Tenant to Landlord in
               connection with this Lease.  Tenant acknowledges that it will, in
               such event, be responsible for the cost of any drawings prepared
               or permits obtained in connection with the Tenant Improvements.

41.  American With Disabilities Act (ADA) Compliance.  Landlord and Tenant
     acknowledge that, in accordance with the provisions of the Americans With
     Disabilities Act (the "ADA"), responsibility for compliance with the terms
     and conditions of Title III of the ADA may be allocated as between Landlord
     and Tenant.  Notwithstanding anything to the contrary contained in the
     Lease, Landlord and Tenant agree that the responsibility for compliance
     with the ADA (including, without limitation, the removal of architectural
     and communications barriers and the provision of auxiliary aids and
     services to the extent required) following substantial completion of the
     Building shall be allocated as follows: (a) Tenant shall, at Tenant's sole
     cost and expense, be responsible for compliance with the provisions of
     Title III of the ADA for any construction, renovations, alterations and
     repairs made within the Premises (except restrooms and elevators), whether
     such construction, renovations, alterations and repairs are completed by
     Landlord or Tenant and whether at Landlord's or Tenant's expense; and (b)
     Landlord shall, at Landlord's sole cost and expense, be responsible for
     compliance with the provisions of Title III of the ADA for (1) restrooms
     and elevators in the Building; (2) all areas of the Building which are
     exterior to the Premises (unless such renovations and alterations are
     required due to Tenant's particular use of such areas), and (3) all of the
     remaining portions of the Land.  Landlord agrees to indemnify and hold
     Tenant harmless from and against any claims, damages, costs and liabilities
     arising out of Landlord's failure, or alleged failure, as the case may be,
     to comply with its obligations under this Section 41, which indemnification
     obligation shall survive the expiration or termination of this Lease.
     Tenant agrees to indemnify and hold Landlord harmless from and against any
     claims, damages, costs and liabilities arising out of Tenant's failure, or
     alleged failure, as the case may be, to comply with its obligations under
     this Section 41, which indemnification obligation shall survive the
     expiration or termination of this Lease.

     Landlord and Tenant each agree that the allocation of responsibility for
     ADA compliance shall not require Landlord or Tenant to supervise, monitor
     or otherwise review the compliance activities of the other with respect to
     its assumed responsibilities for ADA compliance as set forth in this
     Section 41.

42.  Hazardous Materials.  As used in this Lease, "Hazardous Materials" means
     any substance which is (i) designated, defined, classified or regulated as
     a hazardous substance, hazardous material, hazardous waste, pollutant or
     contaminant under any Environmental Law, as currently in effect or as
     hereafter amended or enacted, (ii) a petroleum hydrocarbon, including crude
     oil or any fraction thereof and all petroleum products, (iii) PCBs, (iv)
     lead, (v) asbestos, (vi) flammable explosives, (vii) infectious materials,
     or (viii) radioactive materials. "Environmental Law(s)" means the
     Comprehensive Environmental Response, Compensation, and Liability Act of
     1980, 42 U.S.C. Sections 9601, et seq., the Resource Conservation and
                                    -- ---
     Recovery Act of 1976, 42 U.S.C. Sections 6901, et seq., the Toxic
                                                    -- ---
     Substances Control Act, 15 U.S.C. Sections 2601, et seq., the Hazardous
                                                      -- ---
     Materials Transportation Act, 49 U.S.C. 5101, et seq., the Clean Water Act,
                                                   -- ---
     33 U.S.C. Sections 1251, et seq., and the Washington Model Toxics Control
                              -- ---
     Act, Revised Code of Washington Chapter 70.105D, as said laws have been
     supplemented or amended to date, the regulations promulgated pursuant to
     said laws and any other federal, state or local law, statute, rule,
     regulation or ordinance which regulates or proscribes the use, storage,
     disposal, presence, clean-up, transportation or release or threatened
     release into the environment of Hazardous Material.

     Tenant shall not cause, or allow any of Tenant's employees, agents,
     customers, visitors, invitees, licensees, contractors, assignees and
     subtenants to cause, any Hazardous Materials to be handled, used,
     generated, stored, released or disposed of in, on, under or about the
     Premises, the Building or the Project or surrounding land or environment in
     violation of any Environmental Laws.  Tenant must obtain Landlord's written
     consent prior to the introduction of any Hazardous Materials onto the
     Premises, the Building or the Project.  Notwithstanding the foregoing,
     Tenant may handle, store, use and dispose of products containing small
     quantities of Hazardous Materials for "general office purposes" (such as
     toner for copiers) to the

                                       26
<PAGE>

     extent customary and necessary for the Permitted Materials in a safe and
     lawful manner and never allow such Hazardous Materials to contaminate the
     Uses of the Premises; provided that Tenant shall always handle, store, use,
     and dispose of any such Hazardous Premises, Building, or Project or
     surrounding land or environment. Tenant shall immediately notify Landlord
     in writing of any Hazardous Materials' contamination of any portion of the
     Premises, the Building or the Project of which Tenant becomes aware,
     whether or not caused by Tenant. Landlord shall have the right at all
     reasonable times to inspect the Premises and to conduct tests and
     investigations to determine whether Tenant is in compliance with the
     foregoing provisions, the costs of all such inspections, tests and
     investigations to be borne by Tenant. Tenant shall indemnify, defend (by
     counsel reasonably acceptable to Landlord), protect and hold Landlord
     harmless from and against any and all claims, liabilities, losses, costs,
     loss of rents, liens, damages, injuries or expenses (including attorneys'
     and consultants' fees and court costs), demands, causes of action, or
     judgments directly or indirectly arising out of or related to the use,
     generation, storage, release, or disposal of Hazardous Materials by Tenant
     or any of Tenant's Parties in, on, under or about the Premises, the
     Building or the Project or surrounding land or environment, which indemnity
     shall include, without limitation, damages for personal or bodily injury,
     property damage, damage to the environment or natural resources occurring
     on or off the Premises, losses attributable to diminution in value or
     adverse effects on marketability, the cost of any investigation,
     monitoring, government oversight, repair, removal, remediation,
     restoration, abatement, and disposal, and the preparation of any closure or
     other required plans, whether such action is required or necessary prior to
     or following the expiration or earlier termination of this Lease. Neither
     the consent by Landlord to the use, generation, storage, release or
     disposal of Hazardous Materials nor the strict compliance by Tenant with
     all laws pertaining to Hazardous Materials shall excuse Tenant from
     Tenant's obligation of indemnification pursuant to this Section 42.
     Tenant's obligations pursuant to the foregoing indemnity shall survive the
     expiration or earlier termination of this Lease.

     Landlord represents and warrants, to the best of its knowledge without
     special inquiry, that no Hazardous Materials are being or have in the past
     been generated, treated or disposed of or at the Premises or the Building.
     Landlord shall not use, generate, treat, store or dispose of any Hazardous
     Materials on the Premises or in the Building except in accordance with all
     Environmental Laws. If Landlord breaches the obligations stated in the
     preceding sentence, or if the presence of Hazardous Materials on the
     Premises or Building caused by Landlord results in contamination of the
     Premises or Building, then Landlord shall indemnify, defend and hold Tenant
     harmless from any and all claims, judgments, damages, penalties, fines,
     costs, liabilities, or losses (including, without limitation, diminution in
     value of the Premises, damages for the loss or restriction on the use of
     Tenant's rentable or usable space, and sums paid in settlement of claims,
     attorneys' fees, consultant fees and expert fees) which arise during or
     after the Lease term as a result of Landlord's violation of Environmental
     Laws. The foregoing representations and warranties contained in this
     paragraph shall not be binding upon any mortgagee, and such mortgagee's
     successors and assigns, who holds a mortgage or deed of trust encumbering
     the Land and who succeeds to the interest of Landlord under this Lease as a
     result of foreclosure or otherwise, or upon any successor in interest to
     Landlord who purchases the interest of Landlord in the Land at a
     foreclosure sale conducted for the benefit of such mortgagee.

43.  Arbitration. If a dispute arises under this Lease, the parties shall
     proceed to resolve the dispute by arbitration in accordance with the
     provisions of this Section 43.

     The party desiring arbitration shall give written notice to that effect to
     the other party, specifying in the notice the nature of the dispute and the
     name and address of three persons acceptable to it to act as arbitrator on
     its behalf. Within five (5) business days after receipt of such notice, the
     other party shall give written notice to the first party, informing the
     first party if any of the arbitrators specified are acceptable, and if none
     are acceptable, submitting an additional three persons for consideration.
     If, within fifteen (15) days from the date of the first notice, the parties
     are unable to mutually agree on the person to serve as arbitrator, either
     party may apply to the presiding judge of the King County Superior Court to
     select the arbitrator.

                                       27
<PAGE>

     Within five (5) business days following selection of the arbitrator, each
     party shall furnish the arbitrator with its written position. Each party
     may also include at this time any information, data, and/or reports
     supportive of its position. The arbitrator may request additional
     information, data, or reports from the parties or others if the arbitrator
     so desires. Within fifteen (15) business days following the arbitrator's
     receipt of information from the parties, the arbitrator shall notify both
     parties in writing of the arbitrator's decision. The arbitrator is not
     empowered to award any damages in excess of actual, compensatory damages.
     The decision of the arbitrator shall be final and binding upon the parties
     and effective as of the date of notification to the parties of the
     arbitrator's decision.

     The arbitrator shall be an individual with at least ten (10) years
     substantial experience in managing and/or operating commercial real
     property.  Arbitration shall be conducted pursuant to the rules of the
     American Arbitration Association then in effect and the decision of the
     arbitrator may be entered and enforced as a judgment in accordance with the
     applicable laws of King County, Washington.  Each party shall bear its own
     attorneys' fees and expenses and shall share equally those of the
     arbitrator.  The place of arbitration shall be in either Bellevue or
     Seattle, Washington.

44.  Quiet Enjoyment.  Landlord warrants and covenants that, during all terms of
     this Lease, Tenant will have the exclusive right to possession and quiet
     enjoyment of the Premises and will have, hold and enjoy the Premises
     peacefully and quietly, without any manner of let, suit, trouble or
     hindrance so long as Tenant complies with all material provisions of this
     Lease.

45.  Execution of Lease by Landlord.  The submission of this document for
     examination and negotiation does not constitute an offer to lease, or a
     reservation of, or option for the Premises.  No act or omission of any
     employee or agent of Landlord or of Landlord's broker shall alter, change
     or modify any of the provisions hereof.

46.  Landlord's Liability.  Anything in this Lease to the contrary
     notwithstanding, covenants, undertakings and agreements herein made on the
     part of Landlord are made and intended not as personal covenants,
     undertakings and agreements or for the purpose of binding Landlord
     personally or the assets of Landlord except Landlord's interest in the
     Premises and the Building and the proceeds thereof, but are made and
     intended for the purpose of binding only Landlord's interest in the
     Premises and the Building and the proceeds thereof.  No personal liability
     or personal responsibility is assumed by, nor shall at anytime be asserted
     or enforceable against Landlord or its partners and their respective heirs,
     legal representatives, successors and assigns on account of this Lease or
     on account of any covenant, undertaking or agreement of Landlord contained
     in this Lease.

47.  Brokers.

     (a)  Identification of Brokers.  Tenant was represented in this lease
          -------------------------
          transaction by Paul Sweeney of The Broderick Group, Inc.  Landlord was
          represented in this lease transaction by Geoff Boguch and Amy Bolich
          of Colliers International.  No other finder or broker participated in
          this lease transaction or is entitled to compensation on account of
          this lease transaction.

     (b)  Representation and Indemnity Regarding Brokers.  Tenant and Landlord
          ----------------------------------------------
          each represent and warrant to the other that they have not engaged any
          broker, finder or other person who would be entitled to any commission
          or fee in respect of the negotiation, execution or delivery of this
          Lease except for those brokers identified in this Section 47, and each
          shall indemnify and hold harmless the other against any loss, cost,
          liability or expense incurred by the other as a result of any claim
          asserted by any other broker, finder or other person on the basis of
          any arrangements or agreements made or alleged to have been made by or
          on behalf of Tenant or Landlord.

48.  Corporate Authority.  Where Tenant is a corporation, each individual
     executing this Lease on behalf of Tenant represents and warrants that he or
     she is duly authorized to execute and deliver this Lease on behalf of
     Tenant, in accordance with a duly adopted resolution of the Board of
     Directors of Tenant.  Tenant shall,

                                       28
<PAGE>

     within thirty (30) days after execution of this Lease, deliver to Landlord
     a certified copy of a resolution of the Board of Directors of Tenant
     authorizing or ratifying the execution of this Lease, substantially in the
     form of Exhibit O attached to this Lease.
             ---------

49.  General Provisions.

     (a)  Standard for Consent or Approval.  Wherever in this Lease a party may
          --------------------------------
          not "unreasonably withhold its consent,"  "unreasonably withhold or
          delay its consent," "unreasonably withhold its approval", or phrases
          of like import, then such party's consent or approval shall be granted
          or withheld in its reasonable business judgment.

     (b)  Section Headings.  The title of sections of this Lease are not a part
          ----------------
          of this Lease and shall have no effect upon the construction or
          interpretation of any part hereof.

     (c)  Governing Law.  This Lease shall be construed and governed by the laws
          -------------
          of the State of Washington.

     (d)  Binding on Successors.  All of the covenants, agreements, terms and
          ---------------------
          conditions contained in this Lease shall apply to and be binding upon
          Landlord and Tenant and their respective heirs, executors,
          administrators, successors and assigns.

     (e)  Entire Agreement.  This Lease contains all covenants and agreements
          ----------------
          between Landlord and Tenant relating in any manner to the rent, use
          and occupancy of the Premises and Tenant's use of the Building and
          other matters set forth in this Lease.  No prior agreements or
          understanding pertaining to the same shall be valid or of any force or
          effect and the covenants and agreements of this Lease shall not be
          altered, modified, or added to except in writing signed by Landlord
          and Tenant.  Any provision of this Lease which shall prove to be
          invalid, void or illegal shall in no way affect, impair or invalidate
          any other provision hereof and the remaining provisions hereof shall
          nevertheless remain in full force and effect.

     (f)  Name of Building.  Landlord reserves the right to name and re-name the
          ----------------
          Building from time to time, and to install signs accordingly, without
          compensation, but only with prior written notice to Tenant.

     (g)  Invalidity of Provisions.  The invalidity of all or any part of any
          ------------------------
          section of this Lease will not render invalid the remainder of this
          Lease or the remainder of such section.  If any provision of this
          Lease is so broad as to be unenforceable, such provision will be
          interpreted to be only so broad as is enforceable.

     (h)  Memorandum of Lease. Landlord and Tenant shall execute a Memorandum of
          -------------------
          Lease in recordable form with respect to this Lease, which shall be in
          a form reasonably acceptable to both parties and which shall include,
          without limitation, Tenant's rights in Sterling Plaza I and the 12600
          Building described in Section 38(b) above. Such Memorandum shall be
          recorded on the Land and on the land underlying Sterling Plaza I and
          the 12600 Building.

     (i)  Exhibits.  The following exhibits are made a part of this Lease:
          --------
               Exhibit A  Legal Description of Land
               Exhibit B  Legal Description of Project
               Exhibit C  Plan of the Premises
               Exhibit D  Shell and Core Items for the Building
                          List of Plans and Specifications for Building
               Exhibit E  Scope of Tenant Improvements
               Exhibit F  Form of Letter of Credit
               Exhibit G  Form of Lease Guaranty
               Exhibit H  Rules and Regulations
               Exhibit I  Exclusions from Operating Costs
               Exhibit J  Form of Subordination, Attornment, and Non-Disturbance
                          Agreement
               Exhibit K  Parking Plan
               Exhibit L  Form of Tenant Improvement Promissory Note
               Exhibit M  Sketches Showing Area of Roof Designated for Tenant's
                          Exclusive Use
               Exhibit N  Form of Communications Site Lease
               Exhibit O  Certificate of Corporate Resolution of Tenant

                                       29
<PAGE>

IN WITNESS WHEREOF, this Lease has been executed the day and year first above
set forth.

                                        LANDLORD:

                                        STERLING REALTY ORGANIZATION CO.,
                                        a Washington corporation

                                        By:
                                           ------------------------------
                                           David Schooler, President

                                        TENANT:

                                        iSHIP.COM, INC.
                                        a Washington corporation

                                        By:
                                           ------------------------------
                                        Its:
                                            -----------------------------

STATE OF WASHINGTON   )
                      ) ss.
COUNTY OF KING        )

  THIS IS TO CERTIFY that on this ______ day of ______, 2000, before me, the
undersigned, a notary public in and for the State of Washington, duly
commissioned and sworn, personally appeared DAVID SCHOOLER, to me known to be
the President of STERLING REALTY ORGANIZATION CO., a Washington corporation, the
corporation that executed the within and foregoing instrument, and acknowledged
the said instrument to be the free and voluntary act and deed of said
corporation for the uses and purposes therein mentioned, and on oath stated that
he was authorized to execute said instrument.

  WITNESS my hand and official seal the day and year in this certificate first
above written.

                           -------------------------------------
                           (Signature)

                           -------------------------------------
                           (Please print name legibly)

                           NOTARY PUBLIC in and for the State of
                           Washington, residing at
                                                  --------------
                           My commission expires
                                                ----------------

STATE OF WASHINGTON  )
                     ) ss.
COUNTY OF KING       )

  THIS IS TO CERTIFY that on this _____ day of ______, 2000, before me, the
undersigned, a notary public in and for the State of Washington, duly
commissioned and sworn, personally appeared _____________________________, to me
known to be the _____________________ of iSHIP.COM, INC., a Washington
corporation, the corporation that executed the within and foregoing instrument,
and acknowledged the said instrument to be the free and voluntary act and deed
of said corporation for the uses and purposes therein mentioned, and on oath
stated that _____ was authorized to execute said instrument.

  WITNESS my hand and official seal the day and year in this certificate first
above written.

                                     -------------------------------------------
                                     (Signature)

                                     -------------------------------------------
                                     (Please print name legibly)

                                     NOTARY PUBLIC in and for the State of
                                     Washington, residing at
                                                            --------------------
                                     My commission expires
                                                          ----------------------

                                       30
<PAGE>

                                   EXHIBIT A
                                      TO
                                LEASE AGREEMENT

                           Legal Description of Land
                           -------------------------

New Lot 2
---------

A portion of Lot 1 of Short Plat No. 280070R, according to the short plat
recorded under King County Recording No. 8011200686, being a revision of short
plat recorded under Recording No. 8009300879.

TOGETHER with that portion of the vacated portion of SE 38th Street lying with
the projected lot lines of the property herein described as vacated by King
County Ordinance No. 6582 as recorded under King County Recording No. 84030789;

TOGETHER with a portion of Parcels C, D, E & F of King County Lot Line
Adjustment No. LLA 8810004, according to the Lot Line adjustment recorded under
King County Recording No. 9101239007, being a portion of the West 1/2 of the
Southeast 1/4 of Section 9, Township 24 North, Range 5 East, W.M., described as
follows:

Commencing at the Northeast corner of the Southwest 1/4, of the Southeast 1/4
said Section 9; thence North 87 degrees 23 minutes 26 seconds West along the
North line of said Southwest 1/4 of the Southeast 1/4, a distance of 180.00 feet
to the TRUE POINT OF BEGINNING; thence South 01 degree 18 minutes 37 seconds
West, a distance of 158.87 feet; thence North 87 degrees 23 minutes 26 seconds
West, a distance of 437.33 feet; thence South 01 degree 15 minutes 22 seconds
West, a distance 316.89 feet more or less to the Northerly margin of SE 38th
Street; thence North 63 degrees 38 minutes 11 seconds West along said Northerly
margin, a distance of 90.75 feet; thence North 01 degree 15 minutes 16 seconds
East, a distance of 439.20 feet; North 01 degree 12 minutes 48 seconds East a
distance of 14.22 feet; thence South 87 degrees 23 minutes 26 seconds East, a
distance of 321.85 feet; thence North 02 degrees 36 minutes 31 seconds East, a
distance of 3.78 feet; thence South 87 degrees 23 minutes 26 seconds East, a
distance of 197.79 feet; thence South 01 degree 18 minutes 37 seconds West, a
distance of 18.00 feet more or less to the POINT OF BEGINNING.

ALSO known as New Lot 2 of Boundary Line Adjustment No. BLA-995313, recorded
under King County Recording No. 20000228900003.

SITUATE IN THE CITY OF BELLEVUE, COUNTY OF KING, STATE OF WASHINGTON.

                                      A-1
<PAGE>

                                   EXHIBIT B
                                       TO
                                LEASE AGREEMENT

                          Legal Description of Project
                          ----------------------------

New Lot 2
---------

A portion of Lot 1 of Short Plat No. 280070R, according to the short plat
recorded under King County Recording No. 8011200686, being a revision of short
plat recorded under Recording No. 8009300879.

TOGETHER with that portion of the vacated portion of SE 38th Street lying with
the projected lot lines of the property herein described as vacated by King
County Ordinance No. 6582 as recorded under King County Recording No. 84030789;

TOGETHER with a portion of Parcel C, D, E & F of King County Lot Line Adjustment
No. LLA 8810004, according to the Lot Line adjustment recorded under King County
Recording No. 9101239007, being a portion of the West 1/2 of the Southeast 1/4
of Section 9, Township 24 North, Range 5 East, W.M., described as follows:

Commencing at the Northeast corner of the Southwest 1/4, of the Southeast 1/4
said Section 9; thence North 87 degrees 23' 26" West along the North line of
said Southwest 1/4 of the Southeast 1/4, a distance of 180.00 feet to the TRUE
POINT OF BEGINNING; thence South 01 degree 18'37" West, a distance of 158.87
feet; thence North 87 degrees 23'26" West, a distance of 437.33 feet; thence
South 01 degree 15'22" West, a distance 316.89 feet more or less to the
Northerly margin of SE 38th Street; thence North 63 degrees 38'11" West along
said Northerly margin, a distance of 90.75 feet; thence North 01 degree 15'16"
East, a distance of 439.20 feet; North 01 degree 12'48" East a distance of 14.22
feet; thence South 87 degrees 23'26" East, a distance of 321.85 feet; thence
North 02 degrees 36'31" East, a distance of 3.78 feet; thence South 87 degrees
23'26" East, a distance of 197.79 feet; thence South 01 degree 18'37" West, a
distance of 18.00 feet more or less to the POINT OF BEGINNING.

ALSO known as New Lot 2 of Boundary Line Adjustment No. BLA-995313, recorded
under King County Recording No. 20000228900003.

SITUATE IN THE CITY OF BELLEVUE, COUNTY OF KING, STATE OF WASHINGTON.

New Lot 3
---------

A portion of Parcel F of King County Lot Line Adjustment No. LLA 8810004,
according to the Lot line adjustment recorded under King County Recording No.
9101239007, being a portion of the West 1/2 of the Southwest 1/4 of Section 9,
Township 24 North, Range 5 East, W.M., described as follows:

Commencing at the Northeast corner of the Southwest 1/4, of the Southeast 1/4
of said Section 9; thence North 87 degrees 23'26" West along the North line of
said Southwest 1/4 of the Southeast 1/4, a distance of 180.00 feet to the TRUE
POINT OF BEGINNING;

thence North 01 degree 18'37" East, a distance of 18.00 feet;
thence North 87 degrees 23'26" West, a distance of 167.79;
thence North 02 degrees 36'31" East, a distance of 200.60;
thence South 87 degrees 22'55" East, a distance of 106.54;
thence South 02 degrees 37'05" West, a distance of 15.00;
thence South 87 degrees 22'55" East, a distance of 26.70;
thence South 02 degrees 37'05" West, a distance of 126.68;
thence South 87 degrees 22'55" East, a distance of 122.60;

                                      B-1
<PAGE>

thence North 02 degrees 37'05" East, a distance of 298.25;
thence North 87 degrees 22'55" West, a distance of 73.95;
thence North 76 degrees 30'25" West, a distance of 65.88;
thence North 87 degrees 22'55" West, a distance of 132.70;
thence South 02 degrees 37'09" West, a distance of 169.00;
thence North 87 degrees 22'55" West, a distance of 122.99;
thence North 39 degrees 24'04" West, a distance of 166.08;
thence North 50 degrees 35'26" East, a distance of 145.27;
thence South 82 degrees 55'24" East, a distance of 452.11;
thence South 01 degree 18'37" West, a distance of 386.45 feet to a point of
curvature of a 537.50 foot radius non tangent curve whose radius point bears
South 76 degrees 33'36" East; thence Southwesterly along the arc of said curve
through a central angle of 12 degrees 07'47", an arc distance of 113.79 feet;
thence South 01 degree 18'37" West, a distance of 33.20 feet; thence North 87
degrees 23'26" West, a distance of 137.99 feet; thence North 01 degree 18'37"
East, a distance of 128.73 feet more or less to the POINT OF BEGINNING.

ALSO known as New Lot 3 of Boundary Line Adjustment No. BLA-995313, recorded
under King County Recording No. 20000228900003.

SITUATE IN THE CITY OF BELLEVUE, COUNTY OF KING, STATE OF WASHINGTON.

New Lot 4
---------

A portion of Parcels B, C & F of King County Lot Line Adjustment No. LLA
8810004, according to the Lot line adjustment recorded under King County
Recording No. 9101239007, being a portion of the West 1/2 of the Southeast 1/4
of Section 9, Township 24 North, Range 5 East, W.M., described as follows:

Commencing at the Northeast corner of the Southwest 1/4 of the Southeast 1/4 of
said Section 9; thence North 87 degrees 23'26" West along the North line of said
Southwest 1/4 of the Southeast 1/4, a distance of 180.00 feet; thence North 01
degree 18'37" East, a distance of 18.00 feet; thence North 87 degrees 23'26"
West, a distance of 167.79 feet to the TRUE POINT OF BEGINNING; thence North
87 degrees 23'26" West, a distance of 30.00 feet; thence South 02 degrees 36'31"
West, a distance of 3.78 feet; thence North 87 degrees 23'26" West, a distance
of 321.85 feet; thence North 01 degree 12'48" East, a distance of 149.44 feet;
thence North 01 degree 15'33" East, a distance of 81.37 feet; thence North 50
degrees 35'56" East, a distance of 145.02 feet; thence South 39 degrees 24'04"
East, a distance of 166.08 feet; thence South 87 degrees 22'55" East, a distance
of 138.50 feet; thence South 02 degrees 36'31" West, a distance of 200.60 feet
more or less to the POINT OF BEGINNING.

ALSO known as New Lot 4 of Boundary Line Adjustment No. BLA-995313, recorded
under King County Recording No. 20000228900003.

SITUATE IN THE CITY OF BELLEVUE, COUNTY OF KING, STATE OF WASHINGTON.

Parcel A
--------

All that certain real property situate in the County of King, State of
Washington, being a portion of the Southeast quarter of the Northwest quarter of
the Southeast quarter of Section 9, Township 24 North, Range 5 East, W.M., in
King County, Washington, and being more particularly described as follows:

Commencing at the intersection of the Southerly line of the lands condemned in
King County Superior Court Cause No. 666834, with the Westerly right-of-way line
of 128th Avenue Southeast, which point is on a line that is parallel with and
30.00 feet Westerly of the East line of said Southeast quarter of the Northwest
quarter of the Southeast quarter of Section 9:

                                      B-2
<PAGE>

Thence from said point of commencement along the Southerly line of said
condemned lands North 82 degrees 54'52" West 50.76 feet; thence leaving said
Southerly line at right angles South 07 degrees 05'08"West 32.95 feet to the
TRUE POINT OF BEGINNING of this Parcel A; thence from said TRUE POINT OF
BEGINNING, South 02 degrees 37'37" West 298.25 feet;

thence North 87 degrees 22'23" West 122.60 feet;
thence North 02 degrees 37'37" East 126.68 feet;
thence North 87 degrees 22'23" West 26.70 feet;
thence North 02 degrees 37'37" East 15.00 feet;
thence North 87 degrees 22'23" West 122.05 feet;
thence North 02 degrees 37'37" East 169.00 feet;
thence South 87 degress 22'23" East 132.70 feet;
thence South 76 degrees 29'53" East 65.88 feet;
thence South 87 degrees 22'23" East 73.95 feet to the TRUE POINT OF BEGINNING.

                                      B-3
<PAGE>

                                   EXHIBIT C
                                       TO
                                LEASE AGREEMENT

                              Plan of the Premises
                              --------------------

                                      C-1
<PAGE>

                                   EXHIBIT D
                                       TO
                                LEASE AGREEMENT

Shell and Core Items for Building and List of Building Plans and Specifications
-------------------------------------------------------------------------------

Sterling Plaza II:  Definition of Shell and Core Building Improvements (Revised
----------------------------------------------------------------------
3 March 00)

The following work is to be provided by Landlord as the shell and core building
improvements to support the Tenant's Tenant Improvements and occupancy.  This
Definition is supplemented by additional information shown in the Plans and
Specifications prepared by Curtis Beattie & Associates Architects for the base
building marked "Bid Set" 01 Feb 00, as specifically listed in this Exhibit D.
                                                                    ---------
In the event of inconsistencies in the description of the shell and core
building improvements between this Lease and the Plans and Specifications, this
Lease will control.

1.   The Landlord is to provide the completed and operational "shell and core"
     building, as that terminology is generally used in the local real estate
     development industry, as clarified in this Definition and in the Plans and
     Specifications. The shell and core shall meet or exceed local development
     standards, building codes and good industry practice. The completed shell
     and core is to include:

     a.   Site improvements.
     b.   Utilities serving the site and the building.
     c.   Landscaping and irrigation.
     d.   Exterior lighting.
     e.   The building structure including:
          .  12'-6" floor to floor height at tenant floors.
          .  Concrete floor slabs with troweled finish ready for tenant
             improvements.
          .  A floor structural capacity in all tenant areas of 80 psf live
             load plus 20 psf tenant partition load in addition to the
             structure dead load.
     f.   The exterior building enclosure.  Glazing shall have a shading
          coefficient of 0.33 or less.
     g.   A two level parking garage.
     h.   Three passenger elevators, including two with 3,000 lb. capacity
          and one with 3,500 lb. capacity with a 9'-4" ceiling height for
          service.
     i.   Building services areas in the parking garage and at the roof,
          complete.
     j.   Shell interior construction including:
          .  Thermal insulation at exterior walls, and under floors and roof
             structure where required.
          .  Steel stud framing and GWB at exterior walls and columns facing
             tenant spaces taped and ready for paint.
     k.   Core interior construction including:
          .  Steel stud framing and GWB at core walls, columns and shear walls
             facing Tenant spaces taped and ready for paint.
             .  Core rooms, stairways and shafts complete (other than
                supplemental electrical, HVAC and plumbing services added by
                the Tenant).
             .  Building standard locksets at fire exit stair doors leading to
                tenant areas.
             .  Elevator lobbies on each floor, substantially complete,
                including the automated smoke separation doors.
             .  Main building lobby, substantially complete, including balcony
                on 2nd floor and related partitions, doors and relights
                separating the lobby areas from tenant areas.
     l.   2'x4' acoustical ceiling grid installed throughout tenant areas.
     m.   Required quantities of 2'x4' Class A mineral and/or ceramic fiber
          acoustical ceiling tile stocked on each floor ready for installation.
     n.   Building signs required by code at the exterior and interior core
     o.   Shell and core access control systems (see item 2).
     p.   Shell and core fire sprinkler systems (see item 3).
     q.   Shell and core HVAC and related control systems (see item 4).
     r.   Shell and core plumbing systems (see item 5)

                                      D-1
<PAGE>

     s.   Shell and core electrical lighting and power systems (see item 6).
     t.   Shell and core communications systems (see item 7).
     u.   Shell and core electrical and electronic life safety systems (see
          item 8).

2.   The shell and core access control system includes:
     a.   A 24 hour / 7 day central proximity card access control system for the
          building.
     b.   Base access control at the main building entrance, the two parking
          garage elevator lobby vestibules, exterior door 1-07 and the three
          elevators.

3.   The shell and core fire sprinkler systems include:
     a.   Central fire protection sprinkler systems for a fully sprinklered
          building. The dry system serves the garage areas and the wet system
          serves the office floors.
     b.   Sprinkler systems installed complete and operational in all parking
          and core areas. Includes semi-recessed heads in areas with finish
          ceilings.
     c.   Sprinkler system mains and laterals installed in tenant areas, with
          sufficient capacity and in a pattern to accommodate future typical
          office tenant improvements.
     d.   Plain brass upright, pendant or side wall sprinkler heads installed in
          tenant areas at a minimum density required by code for unoccupied
          spaces in an occupied building.

4.   The shell and core HVAC and related control systems include:
     a.   The shell and core HVAC system shall be designed for the loads shown
          on drawing M0.1 using ASHRAE Design Data.
     b.   Five main vertical self contained, water cooled, DX central air
          conditioning units with 100% outside air economizer capability. Each
          unit shall have a 50 ton capacity and serve one floor of the building.
     c.   One central cooling tower and condenser water system sized to handle
          the central air conditioning units plus approximately 50 tons and
          approximately 100 gpm additional capacity available for tenant loads.
          The condenser water system shall be configured to allow extension to
          tenant areas, but no distribution below the roof is included.
     d.   Centralized and vertical supply air ductwork and return air systems to
          each floor.
     e.   Supply air ductwork systems at each tenant floor to the VAV boxes.
          Ductwork shown on the Plans as a solid line is included in the shell
          and core work. Ductwork shown dashed is not included.
     f.   VAV boxes in tenant areas shown on the Plans as a solid line are
          included in the shell and core in operational condition. VAV units
          shown dashed are not included. VAV boxes include associated power and
          controls to make operational.
     g.   Digital central energy management, control and monitoring systems
          installed and operational for all shell and core equipment. The system
          shall have the capacity to include the VAV boxes shown dashed on the
          Plans, and be expandable to include related control and monitoring for
          other tenant improvements. The system shall allow convenient after-
          hours tenant control on a floor by floor and zone by zone basis.

5.   The shell and core plumbing systems include:
     a.   Plumbing systems complete for the shell and core areas including all
          fixtures.
     b.   Drinking fountains on each tenant floor.
     c.   Cold water supply piping stubbed out of the core above the ceiling at
          each tenant floor for tenant improvements.
     d.   4" waste and 3" vent lines installed to a capped stub-out for each
          service at the outboard end of each tenant floor stairway for tenant
          improvements.

6.   The shell and core electrical lighting and power systems include:
     a.   A 3,000 amp 480Y/277 volt building service fed by a minimum 1,000 kva
          utility company transformer. The Landlord shall, with the Tenant's
          cooperation, resubmit application to Puget Sound Energy for service to
          have Puget Sound Energy provide a 1,500 kva transformer in lieu of the
          1,000 kva.
     b.   Electrical and lighting systems installed and operational at all
          parking and core areas, including all elevator lobbies and the main
          building lobby.
     c.   Electrical power installed to VAV boxes in tenant areas installed as a
          part of shell and core (see item 4.f).

                                      D-2
<PAGE>

     d.   A 200 kw, 480 volt standby generator to power building "life safety"
          systems and battery powered emergency lighting.
     e.   Each tenant floor shall have one 480/277 volt panel one 112.5 kva
          transformer and two 208/120 volt panels as described on the Plans
          available for tenant lighting and power additions.
     f.   The capacity of the electrical system shall provide for a minimum of
          4.5 watts per square foot for tenant lighting and power.
     g.   A microprocessor-based digital lighting control system installed and
          operational as required for all shell and core lighting. The system
          shall have the capacity to include the lighting installed as a part of
          Base Building Standard. The system shall allow after-hours tenant area
          lighting.

7.   The shell and core communications systems include:
     a.   Telephone and data utility conduits / access pathways and related
          provisions to a central telecommunications room located in the garage.
     b.   Four 4" conduits from telecommunications room to the 1st floor
          electrical / telcom closet and four 4" conduit sleeves to each telcom
          closet above.
     c.   Plywood telephone backboards at each tenant floor telcom closet.

8.   The shell and core life safety systems include:
     a.   Fire alarm systems installed and operational for the parking garage,
          all core areas and at shell and core HVAC and fire sprinkler systems.
          The systems shall have sufficient capacity to be expanded for fire
          alarm systems required as a part of future tenant improvements.
     b.   Code required emergency power and required battery back-up systems for
          life safety systems.
     c.   Fire extinguishers at parking garage and core areas.

9.   Base shell and core improvements shall be designed to support the Tenant's
     Tenant Improvements.

List of Plans and Specifications
--------------------------------

Architectural
-------------
A0.0   Cover Sheet
A0.1   Statistics & General Notes
A0.2   Site Survey
A0.3   Average Grade/Lot Coverage Calculations
A0.4   Landscape Area Calculations
A0.5   Glazing Area Calculations

A1.1   Site Plan
A1.2   Enlarged Entry Plan
A1.3   Site Sections & Elevations

A2.1   Lower Parking Level Plan
A2.2   Upper Parking Level Plan
A2.3   First Floor Plan
A2.4   Second Floor Plan
A2.5   Third Floor Plan
A2.6   Fourth Floor Plan
A2.7   Fifth Floor Plan
A2.8   Roof Plan

A3.1   North and West Elevations
A3.2   South and East Elevations
A3.3   Building Sections

                                      D-3
<PAGE>

A4.1   Enlarged Upper & Lower Parking Level Plans
A4.2   Enlarged First & Second Floor Core Plans and Bathroom Elevations
A4.3   Enlarged Third through Fifth Floor Core Plans
A4.4   Enlarged Roof Plans
A4.5   Mechanical Penthouse Sections/Elevations
A4.6   Wall Sections
A4.7   Wall Sections
A4.8   Wall Sections
A4.9   Enlarged Lobby / Reflected Ceiling Plans
A4.10  Lobby Elevations

A5.1   Stair Section and Plans - West Stair
A5.2   Stair Section and Plans - East Stair
A5.3   Miscellaneous Stair and Metal Details

A6.1   Precast & Window Details
A6.2   -Not Included With Permit Issue-
A6.3   Roof Details
A6.4   Exterior Wall Details
A6.5   Exterior Wall Details
A6.6   Parking Level Details

A7.1   Wall Types
A7.2   Interior Details
A8.1   Door Schedule
A8.2   Door Details

A9.1   Typical Reflected Ceiling Plan
A9.2   Second Floor Reflected Ceiling Plan
A9.3   Third Floor Reflected Ceiling Plan
A9.4   Fourth Floor Reflected Ceiling Plan
A9.5   Fifth Floor Reflected Ceiling Plan

Structural
----------

S1.1   Structural Notes
S1.2   Post-Tensioning Notes, Abbreviations & Symbols

S2.1E  Foundation and Lower Parking Level Plan, East
S2.1W  Foundation and Lower Parking Level Plan, West
S2.2E  Upper Parking Level Plan, East
S2.2W  Upper Parking Level Plan, West
S2.3   First Floor Plan
S2.4   Second Floor Plan
S2.5   Third Floor Plan
S2.6   Fourth Floor Plan
S2.7   Fifth Floor Plan
S2.8F  Roof Framing Plan
S2.8R  Roof Reinforcing Plan
S2.9   Partial Plans

S3.1   Elevations
S3.2   Elevations

                                      D-4
<PAGE>

S4.1   Typical Details & Schedules - Foundations & Concrete Walls
S4.2   Typical Details & Schedules - Columns & Beams
S4.3   Typical Details & Schedules -Slabs and CMU Walls
S4.4   Typical Details & Schedules -Shear Walls
S4.5   Typical Details & Schedules -Moment Frames
S4.6   Typical Details & Schedules -Post-Tensioned Slabs
S5.1   Sections and Details
S5.2   Sections and Details
S5.3   Sections and Details
S5.4   Sections and Details

Landscape
---------

L-1    Landscape Plan, Legend & Details
L-2    Irrigation Plan, Schedule & Notes
L-3    Irrigation Details & Water Conservation Calculations

Civil
-----

C-1        Cover Sheet
C-2 & C-3  Topographic Survey
C-4        Grading and Utility Plan
C-5        Site Details
C-6        T.E.S.C. Details
C-7        Utility Profiles
C-8        General Notes
C-9        T.E.S.C. Plan
C-10       Site Plan "B"
C-11       Underslab Drainage Plan

Mechanical
----------

M0.1   Title Sheet, Legend & Abbreviations, Vicinity Map

M1.1   Site Plan - Utility Coordination Plan  [Not in Current Set]

M2.0   Foundation Plan - Plumbing

M2.1   Lower Parking Level Plan
M2.2   Upper Parking Level Plan
M2.3   First Floor Plan
M2.4   Second Floor Plan
M2.5   Third Floor Plan
M2.6   Fourth Floor Plan
M2.7   Fifth Floor Plan
M2.8   Mechanical Penthouse Plan

M3.1   Mechanical Diagrams

M4.1   Core Plans - Plumbing
M4.2   Plumbing Details
M4.3   Plumbing Schematic

                                      D-5
<PAGE>

M5.1   Mechanical Schedules
M5.2   Mechanical Schedules

Electrical
----------

E-00   Legend / Cover Sheet
E3-00  One-Line
E2-00  Site Lighting
E2-11P Lower Level Parking Lighting
E2-12P Upper Level Parking Lighting
E2-11  First Floor Lighting
E2-12  Second Floor Lighting
E2-13  Third Floor Lighting
E2-14  Fourth Floor Lighting
E2-15  Fifth Floor Lighting
E2-16  Roof Lighting
E2-21P Lower Level Parking Power
E2-22P Upper Level Parking Power
E2-21  First Floor Power
E2-22  Second Floor Power
E2-23  Third Floor Power
E2-24  Fourth Floor Power
E2-25  Fifth Floor Power
E2-26  Roof Power
E600   Panel Schedules  [Included in Technical Specifications]
E601   Panel Schedules  [Included in Technical Specifications]

Technical Specifications for Sterling Plaza Phase II dated February 1, 2000,
including Addendum No. 1 dated February 10, 2000, and Addendum No. 2 dated
February 16, 2000.

                                      D-6
<PAGE>

                                   EXHIBIT E
                                       TO
                                LEASE AGREEMENT

                          Scope of Tenant Improvements
                          ----------------------------

                           [To be provided by Tenant]

                                      E-1
<PAGE>

                                   EXHIBIT F
                                       TO
                                LEASE AGREEMENT

                            Form of Letter of Credit
                            ------------------------

                                   FOR INTERNAL IDENTIFICATION PURPOSES ONLY

                                   Our No. __________  Other __________

                                   Applicant ___________________________

TO:  Sterling Realty Organization Co.
     600 - 106th Avenue N.E., Suite 200]
     Bellevue, Washington  98108

IRREVOCABLE LETTER OF CREDIT NO. ___________

          We hereby establish this irrevocable Letter of Credit in favor of the
aforesaid addressee ("Beneficiary") for drawings up to United States $__________
effective immediately.  This Letter of Credit is issued, presentable and payable
at our office at [issuing bank's address] and expires with our close of business
                 ------------------------
on ___________, 20__.

          The term "Beneficiary" includes any successor by operation of law of
the named Beneficiary including, without limitation, any liquidator,
rehabilitator, receiver or conservator.

          We hereby undertake to promptly honor your sight draft(s) drawn on us,
indicating our Credit No. ________, for all or any part of this Credit if
presented at our office specified in paragraph one on or before the expiry date
or any automatically extended expiry date, along with a certificate in the form
of Exhibit A attached hereto certifying that iShip.com, Inc., the tenant under
   ---------
that certain Lease Agreement between Sterling Realty Organization Co. and
iShip.com, Inc. dated March ___, 2000, is in default thereunder beyond any
applicable notice and cure periods.

          Except as expressly stated herein, this undertaking is not subject to
any agreement, condition or qualification.  The obligation of [issuing bank]
                                                              --------------
under this Letter of Credit is the individual obligation of [issuing bank], and
                                                            --------------
is in no way contingent upon reimbursement with respect thereto.

          It is a condition of this Letter of Credit that it is deemed to be
automatically extended without amendment for one year from the expiry date
hereof, or any future expiration date, unless thirty (30) days prior to an
expiration date we notify you by registered mail that we elect not to consider
this Letter of Credit renewed for any such additional period.

          This Letter of Credit is subject to and governed by the Laws of the
State of New York and the 1993 revision of the Uniform Customs and Practice for
Documentary Credits of the International Chamber of Commerce (Publication 500)
and, in the event of any conflict, the Laws of the State of New York will
control. If this Credit expires during an interruption of business as described
in article 17 of said Publication 500, the bank hereby specifically agrees to
effect payment if this Credit is drawn against within 30 days after the
resumption of business.

                                  Very truly yours,

                                  _______________________

                                      F-1
<PAGE>

                                   EXHIBIT A
                                       TO
                                LETTER OF CREDIT

                    Form of Certificate of Default by Tenant
                    ----------------------------------------

To:         [Issuing Bank]
From:       Sterling Realty Organization Co.
Regarding:  Letter of Credit No. ___________

                        CERTIFICATE OF DEFAULT BY TENANT

Sterling Realty Organization Co., the landlord under that certain Lease
Agreement between Sterling Realty Organization Co., a Washington corporation
("Landlord"), and iShip.com, Inc., a Washington corporation ("Tenant"), dated
March ___, 2000 (the "Lease"), hereby certifies to [Issuing Bank] as follows:

1.   that Tenant is in default of its obligations under the Lease beyond the
     notice and cure periods applicable to such default; and

2.   based on Tenant's default, and under the provisions of the Lease, Landlord
     is entitled to draw down the entire amount of this Letter of Credit No.
     _______.

                                   STERLING REALTY ORGANIZATION CO.,
                                   a Washington corporation

                                   By:_____________________________
                                      Its:_________________________

                                   Date:___________________________

                                      F-2
<PAGE>

                                   EXHIBIT G
                                   ---------
                                       TO
                                LEASE AGREEMENT

                             Form of Lease Guaranty
                             ----------------------

                               GUARANTY OF LEASE

     THIS GUARANTY OF LEASE is made and given by STAMPS.COM, INC., a Delaware
corporation ("Guarantor"), to and for the benefit of STERLING REALTY
ORGANIZATION CO., a Washington corporation ("Landlord"), with respect to that
certain Lease Agreement between Landlord and iSHIP.COM, a Washington corporation
and a wholly-owned subsidiary of Guarantor ("Tenant"), dated March 7, 2000 (the
"Lease").

     FOR VALUE RECEIVED and in consideration of and as an inducement to Landlord
entering into the Lease, Guarantor unconditionally and continuously guarantees
to Landlord, its successors and assigns, the full and timely performance and
observance by Tenant of all the terms and conditions of the Lease to be
performed and observed by Tenant.

     This Guaranty and the obligations of Guarantor hereunder shall not be
terminated or impaired by reason of the granting by Landlord of any indulgences
to Tenant or the assertion by Landlord against Tenant of any of Landlord's
rights or remedies under the Lease, or by the relief of Tenant from any of
Tenant's obligations under the Lease by operation of law or otherwise, whether
or not Guarantor has received notice of same.  Guarantor waives all suretyship
defenses and waives notice of any breach by Tenant.

     This Guaranty shall continue in full force and effect as to any renewal,
amendment, modification, extension, assignment or transfer of the Lease or any
subletting of the Lease premises, whether or not Guarantor shall have received
notice of or consented to the same.  The liability of Guarantor under this
Guaranty is primary and absolute, and Landlord may at its option proceed against
Guarantor without proceeding against Tenant.  Any action against Guarantor shall
be brought in King County, Washington.

     Landlord's delay or failure to insist upon the strict performance or
observance of any obligation of Tenant under the Lease or to exercise any right
or remedy available under the Lease or at law or in equity, shall not be
construed to be a waiver of Landlord's prerogative to insist upon such strict
performance or observance or to exercise any such right or remedy.  Receipt by
Landlord of rent or other payment with knowledge of a breach of any term or
condition of the Lease shall not be construed to be a waiver of such breach.

     The liability of Guarantor hereunder shall not be affected or limited by:
(a) the release or discharge of Tenant in any creditors', receivership,
bankruptcy or other proceedings; (b) the impairment, limitation or modification
of the liability of the Tenant or the estate of Tenant in bankruptcy, or of any
remedy for the enforcement of Tenant's liability under the Lease resulting from
the operation of any present or future provision of the federal bankruptcy laws
or other statutes or from the decision in any court; (c) the rejection or
disaffirmance of the Lease in any such proceedings; (d) any disability or other
defense of Tenant; or (e) the cessation, from any cause whatsoever, of the
liability of Tenant.

     Until all the terms, conditions and agreements of the Lease are fully
performed and observed by Tenant, Guarantor hereby waives the right to enforce
any claim, right or remedy which Guarantor now has or hereafter shall have
against Tenant by reason of any one or more payments or acts of performance in
compliance with the obligations of Guarantor hereunder, and Guarantor hereby
subordinates any liability or indebtedness of Tenant now or hereafter held by
Guarantor to the obligations of Tenant to Landlord under the Lease.

                                      G-1
<PAGE>

     This Guaranty shall inure to the benefit of Landlord, its affiliates,
successors and assigns, and shall be binding upon the successors and assigns of
Guarantor.

     This Guaranty is irrevocable and may not be changed, affected, discharged
or terminated other than by an agreement in writing signed by Guarantor and
Landlord.

     Guarantor shall pay all costs and expenses paid or incurred by Landlord in
enforcing either the Lease or this Guaranty, including court costs and a
reasonable amount for legal services performed by counsel, whether employed or
retained by Landlord.

     DATED this 7th day of March, 2000.

                                       GUARANTOR:

                                       STAMPS.COM, INC.,
                                       a Delaware corporation

                                       By:________________________
                                          Its:____________________

STATE OF _______________  )
                          ) ss.
COUNTY OF ______________  )

     On this ________ day of March, 2000, before me personally appeared
_____________________________, to me known to be the ________________________ of
STAMPS.COM, INC., a Delaware corporation, the corporation that executed the
within and foregoing instrument, and acknowledged said instrument to be the free
and voluntary act and deed of such corporation for the uses and purposes therein
mentioned, and on oath stated that ______ was authorized to execute said
instrument.

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

                                     ___________________________________
                                     (Signature)

                                     ___________________________________
                                     (Please print name legibly)

                                     NOTARY PUBLIC in and for the State of
                                     _____________, residing at ___________
                                     My commission expires_________________

                                      G-2
<PAGE>

                                   EXHIBIT H
                                       TO
                                LEASE AGREEMENT

                             Rules and Regulations
                             ---------------------

1.   No sign, placard, picture, advertisement, name or notice shall be installed
     or displayed on any part of the outside or inside of the Building without
     the prior written consent of the Landlord.  Landlord shall have the right
     to remove, at Tenant's expense and without notice, any sign installed or
     displayed in violation of this rule.  All approved signs or lettering on
     doors and walls shall be printed, painted, affixed or inscribed at the
     expense of Tenant by a person chosen by Landlord.

2.   If Landlord objects in writing to any curtains, blinds, shadow, screens or
     hanging plants or other similar objects attached to or used in connection
     with any window or door of the Premises, Tenant shall immediately
     discontinue such use.  No awning shall be permitted on any part of the
     Premises.  Tenant shall not place anything against or near glass partitions
     or doors or windows which may appear unsightly from outside the Premises.

3.   Tenant shall not obstruct any sidewalk, halls, passages, exits, entrances,
     elevators, escalators, or stairways of the Building.  The halls, passages,
     exits, entrances, shopping malls, elevators, escalators and stairways are
     not open to the general public.  Landlord shall in all cases retain the
     right to control and prevent access thereto of all persons whose presence
     in the judgment of Landlord would be prejudicial to the safety, character,
     reputation and interest of the Building and its tenants; provided that
     nothing herein contained shall be construed to prevent such access to
     persons with whom any tenant normally deals in the ordinary course or its
     business, unless such persons are engaged in illegal activities.  No tenant
     and no employee or invitee of any tenant shall go upon the roof of the
     Building except in accordance with the provisions of the Communications
     Site Lease between Landlord and Tenant.

4.   The directory of the Building will be provided exclusively for the display
     of the name and location of tenants only, and Landlord reserves the right
     to exclude any other names therefrom.

5.   All cleaning and janitorial services for the Building and the Premises
     shall be provided exclusively through Landlord, and except with the written
     consent of Landlord, no person or persons other than those approved by
     Landlord shall be employed by Tenant or permitted to enter the Building for
     the purpose of cleaning the same.  Tenant shall not cause any unnecessary
     labor by carelessness or indifference to the good order and cleanliness of
     the Premises.  Landlord shall not in any way be responsible to any Tenant
     for any loss of property on the Premises, however occurring, or for any
     damage to Tenant's property by the janitor or any other employee or any
     other person.

6.   Landlord will furnish Tenant, free of charge, two keys to each door lock in
     the Premises.  Landlord may make a reasonable charge for any additional
     keys.  Tenant shall not make or have made additional keys, and Tenant shall
     not alter any lock or install a new additional lock or bolt on any door of
     the Premises.  If Tenant installs a separate security system, Tenant shall
     provide Landlord with card keys or passwords for emergency access.  Tenant,
     upon the termination of its tenancy, shall deliver to Landlord the keys of
     all doors which have been furnished to Tenant, and in the event of any keys
     so furnished, shall pay Landlord therefore.

7.   If Tenant requires telegraphic, telephonic, security system or similar
     services, it shall first obtain, and comply with, Landlord's instructions
     for their installation.

8.   Tenant shall not place a load upon any floor of the Premises which exceeds
     the load per square foot for which such floor was designed to carry and
     which is allowed by law.  Landlord shall have the right to prescribe the
     weight, size and position of all equipment, materials, furniture or other
     property brought into

                                      H-1
<PAGE>

     the Building. Heavy objects shall, if considered necessary by Landlord,
     stand on such platforms as determined by Landlord to be necessary to
     properly distribute the weight. Business machines and mechanical equipment
     belonging to Tenant, which cause noise or vibration that may be transmitted
     to the structure of the Building or to any space therein or to any other
     tenant in the Building, shall be placed and maintained by Tenant, at
     Tenant's expenses, on vibration eliminators or other devices sufficient to
     eliminate noise or vibration. The persons employed to move such equipment
     in or out of the Building must be acceptable to Landlord. Landlord will not
     be responsible for loss of, or damage to, any such equipment or other
     property from any cause, and all damage done to the Building by maintaining
     or moving such equipment or other property shall be repaired at the expense
     of Tenant.

9.   Tenant shall not use or keep in the Premises any kerosene, gasoline or
     inflammable or combustible fluid or material other than those limited
     quantities necessary for the operation or maintenance of office equipment.
     Tenant shall not use or permit to be used in the Premises any foul or
     noxious gas or substance, or permit or allow the Premises to be occupied or
     used in a manner offensive or objectionable to Landlord or other occupants
     of the Building by reason of noise, odors or vibrations, nor shall Tenant
     bring into or keep in or about the Premises any birds or animals.

10.  Tenant shall not use any method of heating or air-conditioning other than
     that supplied by Landlord.

11.  Tenant shall not waste electricity, water or air-conditioning and agrees to
     cooperate fully with Landlord to assure the most effective operation of the
     Building's heating and air-conditioning and to comply with any governmental
     energy-saving rules, laws or regulations of which Tenant has actual notice,
     and shall refrain from attempting to adjust controls.

12.  Landlord reserves the right, exercisable without notice and without
     liability to Tenant, to change the name and street address of the Building.

13.  Landlord reserves the right to exclude from the Building between the hours
     of 6 p.m. and 7 a.m. the following day, or such other hours as may be
     established from time to time by Landlord, and on Sundays and legal
     holidays, any person unless that person is known to the person or employee
     in charge of the Building and has a pass or is properly identified.  Tenant
     shall be responsible for all persons for whom it requests passes and shall
     be liable to Landlord for all acts of such persons.  Landlord shall not be
     liable for damages for any error with regard to the admission to or
     exclusion from the Building of any person.  Landlord reserves the right to
     prevent access to the Building in case of invasion, mob, riot, public
     excitement or other commotion by closing the doors or by other appropriate
     action.

14.  Tenant shall close and lock the doors of its Premises and entirely shutoff
     all water faucets or other water apparatus, and electricity, gas or air
     outlets before Tenant and its employees leave the Premises.  Tenant shall
     be responsible for any damage or injuries sustained by other tenants or
     occupants of the Building or by Landlord for noncompliance with this rule.

15.  The Building is a no-smoking building.  Tenant, its employees, agents,
     guests, invitees, and licensees are prohibited at all times from smoking
     within the Building, the Premises, the Common Area or the Land, except in
     designated smoking areas outside the Building and the Premises, which shall
     be identified by Landlord from time to time.

16.  The toilet rooms, toilets, urinals, wash bowls and other apparatus shall
     not be used for any purpose other than that for which they were constructed
     and no foreign substance of any kind whatsoever shall be thrown therein.
     The expenses of any breakage, stoppage or damage resulting from the
     violation of this rule shall be borne by the Tenant who, or whose employees
     or invitees, shall have caused it.

17.  Tenant shall not sell, or permit the sale at retail, of newspapers,
     magazines, periodicals, theater tickets or any other goods or merchandise
     to the general public in or on the Premises.  Tenant shall not make any
     room-to-room solicitation of business from other tenants in the Building.
     Tenant shall not use the Premises for any business or activity other than
     that specifically provided or in Tenant's Lease.

                                      H-2
<PAGE>

18.  Tenant shall not install any radio or television antenna, telecom
     equipment, loudspeaker or other device on the roof or exterior walls of the
     Building.  Tenant shall not interfere with radio or television broadcasting
     or reception from or in the Building or elsewhere.

19.  Tenant shall not mark, drive nails, screws or drill into the partitions,
     woodwork or plaster or in any way deface the Premises or any part thereof.
     Landlord reserves the right to direct electricians as to where and how
     telephone and telegraph wires are to be introduced to the Premises.  Tenant
     shall not cut or bore holes for wires.  Tenant shall not affix any floor
     covering to the floor of the premises in any manner except as approved by
     Landlord.  Tenant shall repair any damage resulting from noncompliance with
     this rule, except that Tenant shall be permitted to use nails, screws, or
     other hardware necessary to hang artwork, display boards and other standard
     office fixtures.

20.  Canvassing, soliciting and distribution of handbills or any other written
     material, and peddling in the Building are prohibited, and each tenant
     shall cooperate to prevent the same.

21.  Landlord reserves the right to exclude or expel from the Building any
     person who, in Landlord's judgment, is intoxicated or under the influence
     of liquor or drugs or who is in violation of any of the Rules and
     Regulations of the Building.

22.  Tenant shall store all trash and garbage within its Premises.  Tenant shall
     not place in any trash box or receptacle any material which cannot be
     disposed of in the ordinary and customary manner of trash and garbage
     disposal.  All garbage and refuse disposal shall be made in accordance with
     directions issued from time to time by Landlord.  Disposal of any large
     debris will be at Tenant's expense.

23.  The Premises shall not be used for the storage of merchandise hold for sale
     to the general public, or for lodging or for manufacturing of any kind, nor
     shall the Premises be used for any improper or immoral or objectionable
     purpose.

24.  Microwave cooking is permitted on the Premises, as is use by Tenant of
     Underwriters' Laboratory approved equipment for brewing coffee, tea, hot
     chocolate and similar beverages, provided that such equipment is used in
     accordance with all applicable federal, state, county and city laws, codes,
     ordinances, rules and regulations.  Tenant is not allowed to use space
     heaters in the Premises.  All appliance outlets shall be equipped and
     operated by mechanical timers.

25.  Tenant shall not use in any space or in the public halls of the Building
     any hand truck except those equipped with rubber tires and side guards or
     such other material-handling equipment as Landlord may approve.  Tenant
     shall not bring any other vehicles of any kind into the Building.

26.  Without the written consent of Landlord, Tenant shall not use the name of
     the Building in connection with or in promoting or advertising the business
     of Tenant except as Tenant's address.

27.  Tenant shall comply with all safety, fire protection and evacuation
     procedures and regulations established by Landlord or any governmental
     agency.

28.  Tenant shall take reasonable measures to protect its Premises from theft,
     robbery, and pilferage, which includes keeping doors locked and other means
     of entry into the Premises closed.

29.  The requirements of Tenant will be attended to only upon appropriate
     application to the office of the Building by an authorized individual.
     Employees of Landlord shall not perform any work or do anything outside of
     their regular duties unless under special instructions from Landlord, and
     no employee of Landlord will admit any person (Tenant or otherwise) to any
     office without specific instructions from Landlord.

                                      H-3
<PAGE>

30.  Tenant shall not park its vehicles in any parking areas designated by
     Landlord as areas for parking by visitors to the Building.  Tenant shall
     not leave vehicles in the Building parking areas overnight nor park any
     vehicles in the Building parking areas other than automobiles, motorcycles,
     motor driven or non-motor driven bicycles or four-wheeled trucks.

31.  Landlord may waive any one or more of these Rules and Regulations for the
     benefit of Tenant or any other tenant, but no such waiver by Landlord shall
     be construed as a waiver of such Rules and Regulations in favor of Tenant
     of any other tenant, nor prevent Landlord from thereafter reasonably
     enforcing any such Rules and Regulations against any or all of the tenants
     of the Building.

32.  These Rules and Regulations are in addition to, and shall not be construed
     to in any way modify or amend, in whole or in part, the terms, covenants,
     agreements and conditions of any lease of premises in the Building.

33.  Landlord reserves the right to make such other and reasonable Rules and
     Regulations as, in its judgment, may from time to time be needed for safety
     and security, for care and cleanliness of the Building and for the
     preservation of good order therein.  Tenant agrees to abide by all such
     Rules and Regulations hereinabove stated and any additional rules and
     regulations which are adopted.

34.  Tenant shall be responsible for the observance of all of the foregoing
     rules by Tenant's employees, agents, clients, customers, invitees and
     guests.

                                      H-4
<PAGE>

                                   EXHIBIT I
                                       TO
                                LEASE AGREEMENT

                        Exclusions from Operating Costs
                        -------------------------------

(1)  attorneys' fees, accounting fees and other expenditures incurred in
     connection with negotiations, disputes and claims of other tenants or
     occupants of the Building or with other third parties, except as
     specifically otherwise provided in the Lease;

(2)  financing costs, including interest and principal amortization of debts,
     but excluding any local improvement district assessments made against the
     Property (unless such assessment was levied in connection with the
     development of the Building);

(3)  wages, bonuses and other compensation of employees above the grade of
     building manager;

(4)  any liabilities, costs or expenses associated with or incurred in
     connection with the removal, enclosure, encapsulation or other handling of
     asbestos or other hazardous or toxic materials or substances which were
     placed on the Property by Landlord and were deemed toxic or hazardous
     pursuant to then-applicable law at the time so placed;

(5)  costs of any items for which Landlord is paid or reimbursed by insurance
     (provided Landlord shall use its best effort to collect any insurance
     proceeds to which it is entitled);

(6)  increased insurance assessed specifically to any tenant of the Building;

(7)  charges for electricity, water or other utilities and applicable taxes for
     which Landlord is entitled to reimbursement from any other tenant;

(8)  cost of any HVAC, janitorial or other services charged to tenants on an
     extra cost basis after regular business hours;

(9)  cost of installing, operating and maintaining any specialty service, such
     as an observatory, broadcasting facilities, luncheon club, athletic or
     recreation club, or child-care facility;

(10) cost of correcting defects in the design, construction or equipment of, or
     latent defects in, the Building;

(11) cost of any work or services to the extent performed for any facility other
     than the Building (provided Landlord shall have the right to reasonably
     allocate the cost of services provided to more than one facility);

(12) any cost representing an amount paid to a person, firm, corporation or
     other entity related to or affiliated with Landlord that is in excess of
     the amount which would have been paid in the absence of such relationship;

(13) any cost of painting or decorating any interior parts of the Building other
     than common areas;

(14) capital expenditures, other than those (a) required to be made by
     applicable laws first enacted after the Commencement Date; or (b ) incurred
     with a reasonable expectation of increasing the operating efficiency of the
     Building.  All such capital improvements shall be amortized on a straight-
     line basis over their useful lives.

(15) charitable or political contributions;

(16) Landlord shall not recover any item of cost more than once;

(17) cost of any work or service performed by Landlord for any tenant in the
     Building to the extent such work or service is provided to a materially
     greater extent or in a materially more favorable manner than furnished
     generally to the tenants and other occupants of the Building; and

(18) assessments levied in connection with the development of the Building.

                                      I-1
<PAGE>

                                   EXHIBIT J
                                       TO
                                LEASE AGREEMENT

    Form of Subordination, Attornment, Notice and Non-Disturbance Agreement
    -----------------------------------------------------------------------

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

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

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

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

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

                       SUBORDINATION, ATTORNMENT, NOTICE
                         AND NON-DISTURBANCE AGREEMENT
                         -----------------------------

Grantor:
                        -----------------------------
Grantee:
                        -----------------------------
Legal Description:

     Abbreviated:
                        -----------------------------
                        -----------------------------
     Full:
                        -----------------------------
Assessor's Property Tax
Parcel Account Numbers:
                        -----------------------------

      THIS AGREEMENT is made and entered into as of the _____ day of
_________________, ______, by and among (i) iSHIP.COM, INC., a Washington
corporation ("Tenant"), whose principal address is 3545 Factoria Boulevard S.E.,
Bellevue, Washington 98006; (ii) _______________________, a
______________________________ ("Lender"), whose principal address is
_______________________________________; and (iii) STERLING REALTY ORGANIZATION
CO., a Washington corporation ("Borrower"), whose principal address is 600 -
106th Avenue N.E., Suite 200, Bellevue, Washington  98004.

                                   RECITALS:

      A.  Lender has agreed to make a mortgage loan (the "Loan") to Borrower in
the amount of ____________________________ Dollars ($_____________________) to
be secured by a mortgage or deed of trust (the "Mortgage") on the real property
legally described in Exhibit A attached hereto (the "Property");
                     ---------

      B.  Tenant is the present lessee under a lease dated
______________________, made by Borrower as landlord ("Landlord"), demising a
portion of the Premises and other property (said lease and all amendments
thereto being referred to as the "Lease");

                                      J-1
<PAGE>

      C.  The Loan terms require that Tenant subordinate the Lease and its
interest in the Premises in all respects to the lien of the Mortgage and that
Tenant attorn to Lender; and

      D.  In return, Lender is agreeable to not disturbing Tenant's possession
of the portion of the Property covered by the Lease (the "Premises"), so long as
Tenant is not in default under the Lease.

      NOW, THEREFORE, in consideration for the mutual covenants contained herein
and other consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

                                  AGREEMENTS:

1.    Subordination.  The Lease, and the rights of Tenant in, to and under the
      -------------
      Lease and the Premises, are hereby subjected and subordinated to the lien
      of the Mortgage and to any modification, reinstatement, extension,
      supplement, consolidation or replacement thereof as well as any advances
      or re-advances with interest thereon and to any mortgages or deeds of
      trust on the Property which may hereafter be held by Lender.

2.    Tenant Not to Be Disturbed. In the event it should become necessary to
      --------------------------
      foreclose the Mortgage or Lender should otherwise come into possession of
      title to the Property, Lender will not join Tenant in summary or
      foreclosure proceedings unless required by law in order to obtain
      jurisdiction, but in such event no judgment foreclosing the Lease will be
      sought, and Lender will not disturb the use and occupancy of Tenant under
      the Lease so long as Tenant is not in default under any of the terms,
      covenants or conditions of the Lease beyond any applicable notice and cure
      period and has not prepaid the rent except monthly in advance as provided
      by the terms of the Lease.

3.    Tenant to Attorn to Lender.  Tenant agrees that in the event any
      --------------------------
      proceedings are brought for foreclosure of the Mortgage, it will attorn to
      the purchaser as the landlord under the Lease.  The purchaser by virtue of
      such foreclosure shall be deemed to have assumed and agreed to be bound,
      as substitute landlord, by the terms and conditions of the Lease until the
      resale or other disposition of its interest by such purchaser, except that
      such assumption shall not be deemed of itself an acknowledgment by such
      purchaser of the validity of any then existing claims of Tenant against
      any prior landlord (including Landlord).  All rights and obligations under
      the Lease shall continue as though such foreclosure proceedings had not
      been brought, except as aforesaid.  Tenant agrees to execute and deliver
      to any such purchaser such further assurance and other documents,
      including a new lease upon the same terms and conditions of the Lease,
      confirming the foregoing as such purchaser may reasonably request.  Tenant
      waives the provisions (i) contained in the Lease or any other agreement
      relating thereto, and (ii) of any statute or rule of law now or hereafter
      in effect, which may give or purport to give it any right or election to
      terminate or otherwise adversely affect the Lease and the obligations of
      Tenant thereunder by reason of any foreclosure proceeding.

4.    Limitations.  Notwithstanding the foregoing, neither Lender nor such other
      -----------
      purchaser shall in any event be:

      (a) liable for any act or omission of any prior landlord (including
          Landlord) unless such nonperformance constitutes a default under the
          Lease and continues during the period of the Lender's or such other
          purchaser's ownership of the Property;

      (b) obligated to cure any defaults of any prior landlord (including
          Landlord) which occurred prior to the time that Lender or such other
          purchaser succeeded to the interest of such prior landlord under the
          Lease unless such default continues during the period of the Lender's
          or such other purchaser's ownership of the Property;

      (c) subject to any offsets or defenses which Tenant may be entitled to
          assert against any prior landlord (including Landlord);

                                      J-2
<PAGE>

      (d) bound by any payment of rent or additional rent by Tenant to any prior
          landlord (including Landlord) for more than one month in advance;

      (e) bound by any amendment or modification of the Lease made without the
          written consent of Lender or such other purchaser, such consent not to
          be unreasonably withheld;

      (f) liable or responsible for, or with respect to, the retention,
          application and/or return to Tenant of any security deposit paid to
          any prior landlord (including Landlord), whether or not still held by
          such prior landlord, unless and until Lender or such other purchaser
          has actually received for its own account as landlord the full amount
          of such security deposit; or

      (g) bound by any provision in the Lease which obligates Landlord to erect
          or complete any building or to perform any construction work or to
          make any improvements to the Premises or to expand or rehabilitate any
          existing improvements or to restore any improvements following any
          casualty or taking or to make a future capital contribution to Tenant
          or to apply proceeds of casualty insurance or eminent domain awards
          other than as provided in the Mortgage.

5.    Acknowledgment of Assignment of Lease and Rent.  Tenant acknowledges that
      ----------------------------------------------
      it has notice that the Lease and the rent and all other sums due
      thereunder have been assigned or are to be assigned to Lender as security
      for the Loan secured by the Mortgage.  In the event that Lender notifies
      Tenant of a default under the Mortgage and demands that Tenant pay its
      rent and all other sums due under the Lease to Lender, Tenant agrees that
      it will honor such demand and pay its rent and all other sums due under
      the Lease directly to Lender or as otherwise required pursuant to such
      notice.

6.    Limited Liability.  Tenant acknowledges that in all events, the liability
      -----------------
      of Lender and any purchaser shall be limited and restricted to their
      interest in the Property and shall in no event exceed such interest.

7.    Lender's Right to Notice of Default and Option to Cure. Tenant will give
      ------------------------------------------------------
      written notice to Lender of any default by Landlord under the Lease by
      mailing a copy of the same by certified mail, postage prepaid, addressed
      as follows (or to such other address as may be specified from time to time
      by Lender to Tenant):

               To Lender:
                         -----------------------------
                         -----------------------------
                         -----------------------------
                         Attn.:
                               -----------------------
               with copies to:

                         -----------------------------
                         -----------------------------
                         -----------------------------
                         Attn.:
                               -----------------------
      Upon such notice, Lender shall be permitted and shall have the option, in
      its sole and absolute discretion, to cure any such default during the
      period of time during which the Landlord would be permitted to cure such
      default, but in any event Lender shall have a period of thirty (30) days
      after the receipt of such notification to cure such default; provided,
      however, that in the event Lender is unable to cure the default by
      exercise of reasonable diligence within such 30-day period, Lender shall
      have such additional period of time as may be reasonably required to
      remedy such default with reasonable dispatch.

8.    Successors and Assigns. The provisions of this Agreement are binding upon
      ----------------------
      and shall inure to the benefit of the heirs, successors and assigns of the
      parties hereof.

                                      J-3
<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed these presents the day and
year first above written.

                              TENANT:

                              iSHIP.COM,
                              a Washington corporation

                              By:
                                 ---------------------------
                              Name:
                                   -------------------------
                              Title:
                                    ------------------------

                              LENDER:

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

                              By:
                                 ---------------------------
                              Name:
                                   -------------------------
                              Title:
                                    ------------------------

The terms of the above Agreement are hereby consented, agreed to and
acknowledged.

                              BORROWER:

                              STERLING REALTY ORGANIZATION CO.,
                              a Washington corporation

                              By:
                                 ---------------------------
                              Name:
                                   -------------------------
                              Title:
                                    ------------------------

                                      J-4
<PAGE>

STATE OF WASHINGTON        )
                           ) ss.
COUNTY OF KING             )

     I certify that I know or have satisfactory evidence that
______________________________ is the person who appeared before me, and said
person acknowledged that he/she signed this instrument, and on oath stated that
he/she was authorized to execute the instrument and acknowledged it as the
__________________ of iSHIP.COM, INC., a Washington corporation, to be free and
voluntary act of such party for the uses and purposes mentioned in the
instrument.

     DATED:
           ------------------
                              -----------------------------------------
                              (Signature)

                              -----------------------------------------
                              (Please print name legibly)

                              NOTARY PUBLIC in and for the State of
                              Washington, residing at
                                                     ------------------
                              My commission expires
                                                   --------------------

STATE OF ____________  )
                       ) ss.
COUNTY OF __________   )

     I certify that I know or have satisfactory evidence that _____________ is
the person who appeared before me, and said person acknowledged that he/she
signed this instrument, and on oath stated that he/she was authorized to execute
the instrument and acknowledged it as the __________________ of
______________________________, a _________________ corporation, to be free and
voluntary act of such party for the uses and purposes mentioned in the
instrument.

     DATED:
           -----------------
                              -----------------------------------------
                              (Signature)

                              -----------------------------------------
                              (Please print name legibly)

                              NOTARY PUBLIC in and for the State of
                              Washington, residing at
                                                     ------------------
                              My commission expires
                                                   --------------------

                                      J-5
<PAGE>

STATE OF WASHINGTON  )
                     ) ss.
COUNTY OF KING       )

     I certify that I know or have satisfactory evidence that
_________________________ is the person who appeared before me, and said person
acknowledged that ________ signed this instrument, on oath stated that ________
was authorized to execute the instrument and acknowledged it as the
___________________ of STERLING REALTY ORGANIZATION CO., a Washington
corporation, to be the free and voluntary act of such corporation for the uses
and purposes mentioned in the instrument.

     DATED:
           -----------------
                              ------------------------------------------
                              (Signature)

                              ------------------------------------------
                              (Please print name legibly)

                              NOTARY PUBLIC in and for the State of
                              Washington, residing at
                                                     -------------------
                              My commission expires
                                                   ---------------------

                                      J-6
<PAGE>

                                   EXHIBIT A
                                       TO
                       SUBORDINATION, ATTORNMENT, NOTICE
                         AND NON-DISTURBANCE AGREEMENT

                         Legal Description of Property
                         -----------------------------

New Lot 2
---------

A portion of Lot 1 of Short Plat No. 280070R, according to the short plat
recorded under King County Recording No. 8011200686, being a revision of short
plat recorded under Recording No. 8009300879.

TOGETHER with that portion of the vacated portion of SE 38th Street lying with
the projected lot lines of the property herein described as vacated by King
County Ordinance No. 6582 as recorded under King County Recording No. 84030789;

TOGETHER with a portion of Parcels C, D, E & F of King County Lot Line
Adjustment No. LLA 8810004, according to the Lot Line adjustment recorded under
King County Recording No. 9101239007, being a portion of the West  1/2 of the
Southeast  1/4 of Section 9, Township 24 North, Range 5 East, W.M., described as
follows:

Commencing at the Northeast corner of the Southwest 1/4, of the Southeast 1/4
said Section 9; thence North 87 degrees 23' 26" West along the North line of
said Southwest 1/4 of the Southeast 1/4, a distance of 180.00 feet to the TRUE
POINT OF BEGINNING; thence South 01 degrees 18'37" West, a distance of 158.87
feet; thence North 87 degrees 23'26" West, a distance of 437.33 feet; thence
South 01 degress 15'22" West, a distance 316.89 feet more or less to the
Northerly margin of SE 38th Street; thence North 63 degrees 38'11" West along
said Northerly margin, a distance of 90.75 feet; thence North 01 degrees 15'16"
East, a distance of 439.20 feet; North 01 degrees 12'48" East a distance of
14.22 feet; thence South 87 degrees 23'26" East, a distance of 321.85 feet;
thence North 02 degrees 36'31" East, a distance of 3.78 feet; thence South 87
degrees 23'26" East, a distance of 197.79 feet; thence South 01 degrees 18'37"
West, a distance of 18.00 feet more or less to the POINT OF BEGINNING.

ALSO known as New Lot 2 of Boundary Line Adjustment No. BLA-995313, recorded
under King County Recording No. 20000228900003.

SITUATE IN THE CITY OF BELLEVUE, COUNTY OF KING, STATE OF WASHINGTON.

                                      J-7
<PAGE>

                                   EXHIBIT K
                                       TO
                                LEASE AGREEMENT

                                  Parking Plan
                                  ------------

                                      K-1
<PAGE>

                                   EXHIBIT L
                                       TO
                                LEASE AGREEMENT

                   Form of Tenant Improvement Promissory Note
                   ------------------------------------------

                                PROMISSORY NOTE

$_____________                                              Bellevue, Washington
                                                           _______________,200__

FOR VALUE RECEIVED, iSHIP.COM, INC., a Washington corporation (the "Maker"),
promises to pay, in lawful money of the United States of America, to the order
of STERLING REALTY ORGANIZATION CO., a Washington corporation, ("Holder"), at
600 - 106th Avenue N.E., Suite 200, Bellevue, Washington 98004, or such other
place either within or without the State of Washington as Holder may designate
in writing from time to time, the principal sum of
______________________________ Dollars ($__________) or so much thereof as may
disbursed and outstanding, together with interest on the unpaid principal
balance from the date of each advance at the rate stated below, in accordance
with the terms of this Note.

1.   Interest Rate.  From the date of this Note, the principal balance shall
     bear interest at a rate equal to ___________________________ percent (___%)
     per annum.

2.   Payments.  Commencing on ___________________, and on the first day of each
     month thereafter through the Maturity Date, Maker shall pay to Holder
     payments of principal and interest in the amount _________________________
     Dollars ($_________), which amount is calculated based on the outstanding
     principal balance of this Note, the interest rate stated in paragraph 1
     above, and an amortization period of eight (8) years.  Maker will pay
     Holder at Holder's address shown above or at such other place as Holder may
     designate in writing.  Unless otherwise agreed or required by applicable
     law, payments will be applied first to accrued unpaid interest, and then to
     principal.  If not sooner paid, the outstanding principal balance of this
     Note and all accrued unpaid interest is due on _______________________ (the
     "Maturity Date")

3.   Prepayment.  This Note may be prepaid in whole or in part at any time
     without premium or penalty.

4.   Late Charge.  If any monthly payment is not made within ten (10) days of
     the due date, Maker shall pay to Holder on demand a late charge equal to
     three percent (3%) of the amount of the payment to defray the overhead
     expenses of Holder incident to the delay.

5.   Events of Default.  The failure to timely make any payment under this
     Note shall be an Event of Default.

6.   Remedies; Default Interest. Upon any Event of Default, Holder may declare
     the entire principal balance and all accrued interest immediately due and
     payable. Whether or not Holder exercises such option to accelerate, the
     entire principal balance and all accrued interest shall bear interest from
     the date of such Event of Default at a default rate of three percent (3%)
     above the interest rate otherwise payable under this Note. Default interest
     is payable on demand. Holder's failure to exercise any right or remedy
     shall not be a waiver of the right to exercise the same upon any subsequent
     Event of Default.

7.   Collection Expenses. Maker shall reimburse Holder on demand for all
     reasonable legal fees and other costs and expenses incurred in collecting
     or enforcing this Note. Such fees, costs and expenses shall include those
     incurred with or without suit and in any appeal, any proceedings under any
     present or future federal bankruptcy act or state receivership, and any
     post-judgment collection proceedings.

                                      L-1
<PAGE>

8.   Waivers.  Except as provided above, Maker waives all notices otherwise
     required by law, including without limitation presentment and demand for
     payment, protest, and notice of demand, protest, dishonor and nonpayment.

9.   Miscellaneous.

     (a)  This Note shall be construed, enforced and otherwise governed by the
          laws of the State of Washington.

     (b)  Any notice to Maker under this Note shall be to the address noted
          below, or such other address as may be designated by Maker in writing,
          and shall be deemed to have been given on the date delivered in the
          case of personal delivery or, if mailed, three (3) days after the
          postmark thereof.

MAKER ACKNOWLEDGES THAT ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY,
EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT
ENFORCEABLE UNDER WASHINGTON LAW.

                                       MAKER:

                                       iSHIP.COM, INC., a Washington corporation

                                       By:
                                          -----------------------------

                                          Its:
                                              -------------------------

                                      L-1
<PAGE>

                                   EXHIBIT M
                                       TO
                                LEASE AGREEMENT

      Sketches Showing Area of Roof Designated for Tenant's Exclusive Use
      -------------------------------------------------------------------

                                      M-1
<PAGE>

                                   EXHIBIT N
                                       TO
                                LEASE AGREEMENT

                        Form of Communication Site Lease
                        --------------------------------

                           COMMUNICATIONS SITE LEASE

THIS COMMUNICATIONS SITE LEASE (the "Site Lease") dated March 7, 2000, is
entered into by and between iSHIP.COM, INC., a Washington corporation
("Tenant"), having its principal place of business at 3545 Factoria Boulevard
S.E., Bellevue, Washington 98006, and STERLING REALTY ORGANIZATION CO., a
Washington corporation ("Landlord"), having its principal place of business 600-
106th Avenue N.E., Suite 200, Bellevue, Washington 98004.

1.  The Property.  Landlord is the owner of the building commonly known as
    Sterling Plaza II (the "Building"), constructed on that certain parcel of
    real property allocated in the State of Washington, County of King, City of
    Bellevue, located at 3545 Factoria Boulevard S.E., Bellevue, Washington
    98006 (the "Property").  A legal description of the Property is contained
    in Exhibit A attached to this Site Lease.
       ---------

2.  Lease of the Premises.

    (a)   Premises.  Landlord and Tenant have entered into that certain Lease
          --------
          Agreement dated March 7, 2000 (the "Office Lease") with respect to
          office premises located in the Building.  In connection therewith,
          Landlord has agreed that Tenant shall have the exclusive use of that
          portion of the roof of the Building generally described as follows:
          approximately ______square feet of space on the roof of the Building
          (equal to fifty percent (50%) of the usable area of the roof) for
          placement of Tenant's Communications Site (defined in paragraph 6
          below) Equipment (collectively the "Roof Premises").  A sketch of the
          Roof Premises is attached as Exhibit B to this Site Lease.  If at any
                                       ---------
          time during the term of this Site Lease, Tenant occupies less than two
          (2) full floors of the Building, then the area of the roof designated
          for Tenant's exclusive use shall decrease to twenty-five percent (25%)
          of the usable area of the roof of the Building, as shown on Exhibit C
                                                                      ---------
          attached to this Site Lease.

    (b)   Tenant Improvements.  Following the Commencement Date, Tenant shall
          -------------------
          have the right to construct the Communications Site as shown on the
          attached Exhibit B and in accordance with the detailed plans and
                   ---------
          specifications to be submitted by Tenant to Landlord and approved by
          Landlord prior to Tenant commencing any construction.  The design of
          the improvements to be constructed by Tenant shall be consistent with
          the design and construction of the Building.  In addition to plans and
          specifications, Tenant shall provide to Landlord such reports as
          Landlord, in Landlord's sole discretion, requires concerning the
          structural ability of the Building to support Tenant's proposed
          improvements or concerning the structural reinforcement required to
          support Tenant's proposed improvements.  All plans and specifications
          for Tenant's proposed improvements must be reviewed and approved by
          Landlord, Landlord's architect, communications consultant, structural
          engineer and roofing manufacturer; Tenant shall pay for all reasonable
          costs associated with such reviews.  Tenant shall obtain all necessary
          governmental approvals and permits prior to commencing construction
          and shall provide Landlord with ten (10) days notice prior to the
          start of construction.  Landlord may post notices of non-
          responsibility if it so chooses.  All Tenant contractors and
          subcontractors shall be duly licensed in the State of Washington and
          approved in advance by Landlord, such approval not to be unreasonably
          withheld.  All construction activities must be coordinated with
          Landlord or Landlord's agents.  If any damage to the Roof Premises is
          caused by the acts or omissions of Tenant's employees, contractors or
          agents during installation of the Equipment, Tenant shall repair any
          such damage and return the Roof Premises to the same

                                      N-1
<PAGE>

          condition as existed prior to the installation. If Tenant does not
          complete repairs to the satisfaction of the Landlord in a timely
          manner, then Landlord shall make such repairs as it deems necessary
          and such costs shall be paid by Tenant.

3.   Rent.  No rent shall be due from Tenant in connection with the Roof
     Premises.

4.   Term of Lease.  The term of this Site Lease shall, except with respect to
     the commencement date which is determined by the terms of Section 5 below,
     be for the same period of time as the Office Lease, as the same may expire,
     be terminated or be extended in accordance with the terms set forth
     therein.

5.   Commencement Date; Governmental Permits.  The term of this Site Lease shall
     commence on the first day of the month following Tenant's notice to
     Landlord in writing that Tenant has obtained all permits and approvals
     necessary for Tenant to be legally entitled to construct the communications
     site at the Roof Premises (the "Commencement Date").  Tenant shall be
     permitted to occupy the Roof Premises and commence construction of the
     Communications Site upon receipt of all such permits and approvals and
     notice to Landlord as required in paragraph 2.  Any pre-Commencement Date
     occupancy by Tenant shall be under all the terms and conditions of this
     Site Lease.

6.   Use of the Premises.  Tenant shall use the Roof Premises for the
     installation and maintenance of satellite dishes and/or antennas or
     comparable equipment used in connection with the operation of Tenant's
     business from the Premises (a "Communications Site").  The Communications
     Site, for purposes of this Site Lease, is a site at which radio, telephone,
     paging, wireless voice, data, and other communications equipment is
     installed and used to send and receive radio and other signals to and from
     wireless telephones and other radio, paging or computer devices to connect
     those signals to radio, telephone, or other communications facilities
     and/or devices either directly, by means of cables, or indirectly, by means
     of transmitting and receiving facilities approved by Landlord and located
     at the Roof Premises.  Tenant shall not use the Roof Premises for any other
     purposes without the written consent of Landlord.  Landlord shall at all
     times have the ability to audit, inspect and monitor Tenant's use of the
     Roof Premises, and Tenant shall cooperate in all ways reasonably requested
     by Landlord.  If Tenant's use of the Roof Premises increases the cost of
     the Landlord's insurance on the Building, Tenant shall promptly reimburse
     Landlord for such cost following receipt of an invoice therefor from
     Landlord.

7.   License.  Landlord hereby grants to Tenant for the duration of this Site
     Lease, a non-exclusive license in and over the common areas at the Property
     so that Tenant may have access to the Roof Premises (the "Access Areas")
     twenty-four (24) hours per day, seven (7) days per week.  Tenant shall not
     have access to the penthouse located on the roof of the Building without
     being accompanied by Landlord or Landlord's agent, and when on the roof of
     the Building, Tenant and its contractors shall use every effort to walk
     only on the catwalk areas.  The license granted to Tenant is for the
     purpose of installing, constructing, maintaining, restoring, replacing, and
     operating Tenant's equipment located within or on the Roof Premises or the
     Access Areas.  Except in the event of an emergency endangering persons or
     property, or in the event Tenant's signal, for any reason, is interrupted
     or lost, access to the Roof Premises shall be granted only at such times
     during normal business hours of the Building as is reasonable for Landlord
     or Landlord's agents, and then only upon the request of Landlord by Tenant
     or Tenant's agents, made reasonably in advance of the time for such access.
     Outside of normal business hours of the Building, Landlord may require a
     member of its security or maintenance staff to be present during such times
     as Tenant requires access to the Roof Premises.  Tenant shall reimburse
     Landlord for the cost of having a maintenance or security staff member
     present outside of normal business hours.

8.   Protections Against Ongoing Interference.  Following the effective date of
     this Site Lease, and promptly after such information is available to
     Tenant, Tenant shall inform Landlord in writing of its Communications Site
     requirements and signal frequencies, so as to allow Landlord (and tenants
     of Landlord) to determine whether any communications equipment they wish to
     install will create ongoing interference with Tenant's Communications Site.
     Tenant acknowledges that until such time as Tenant has notified Landlord of
     its specific frequency range, Landlord cannot guarantee the appropriateness
     of the

                                      N-2
<PAGE>

     Roof Premises as the location for Tenant's Communications Site. Tenant
     further acknowledges that Landlord has prior obligations to the tenants
     (the "Existing Tenants") of other properties owned by Landlord which are
     located adjacent to the Property, and that Landlord cannot allow Tenant's
     equipment and/or frequencies to interfere with the equipment and/or
     frequencies currently maintained by the Existing Tenants. Therefore, the
     installations of communications equipment, or use of a specific frequency
     by Tenant, or by any other tenant, is subject to the compatibility of such
     party's equipment and frequencies with that of communications equipment and
     frequencies then located on the Property or maintained by an Existing
     Tenant or of which Landlord has been adequately notified as required by
     this paragraph 8. Either Tenant or any other tenant desiring to locate new
     equipment or use additional frequencies shall, at that party's sole cost
     and expense, conduct such studies as are necessary to determine potential
     interference with then-existing equipment and frequencies and/or FCC
     permitted signals or frequencies of Tenant, other tenants of the Property
     and the Existing Tenants. Any change of frequency or additional frequencies
     to be used by Tenant shall be allowed, provided Tenant provides written
     notice of the same to Landlord. Landlord will not grant a lease to any
     party for use of the Property if such use would interfere with Tenant's
     ability to physically operate its Communications Site for the use described
     herein, as specifically approved in writing by Landlord and as Tenant's
     Communications Site exists immediately prior to the date on which any new
     lease is entered into by Landlord for the installation of communications
     equipment on the roof of the Building. Any future lease of the Property
     which permits the installation of communication equipment shall be
     conditioned upon not interfering with Tenant's operation of the
     Communications Site, based on Tenant's written notification to Landlord, as
     to its signal frequencies and any changes or additions thereto, as of the
     date of such lease, and any potential tenant shall be required to conduct
     an intermodulation study to determine potential interference with Tenant's
     signal and transmission. Without limiting any other remedy, in law or
     equity, Tenant shall have the right to terminate this Site Lease upon
     thirty (30) days' written notice in the event its reception or transmission
     is interfered with on an ongoing basis by other antenna equipment, or
     obstacles constructed or operated in Tenant's reception or transmission
     paths located upon or over Landlord's Property. Such termination shall not
     be the basis for any abatement of rent under the Office Lease.

9.   Damage and Destruction.  If the Roof Premises are, in whole or in part,
     damaged or destroyed, then there shall be no abatement of rent under the
     Office Lease.  If the Roof Premises are only partially destroyed and still
     usable as a Communications Site, Landlord shall, within a reasonable time,
     repair the Roof Premises such that the Roof Premises are again as fully
     usable by Tenant as they were before such partial damage or destruction.
     Unless such partial damage or destruction is caused by Landlord, Landlord's
     agents or employees, Landlord shall be obligated to repair or replace the
     Roof Premises only, excluding any tenant improvements constructed,
     installed, or placed onto the Roof Premises by Tenant.  A decision as to
     whether partially destroyed or partially condemned Premises are still
     usable as a Communications Site (for the purposes of this paragraph and of
     paragraph 10 below), shall be made jointly by Landlord and Tenant, and, if
     they cannot agree, by an arbitrator reasonably acceptable to both parties.
     If the Roof Premises are wholly destroyed, then Landlord shall inform
     Tenant, within sixty (60) days after the date of such destruction, whether
     it intends to restore the Roof Premises.

10.  Condemnation.  If all or part of the Roof Premises is taken by condemnation
     such that the Roof Premises are no longer usable for construction of or
     operation as a Communications Site, this Site Lease shall terminate unless
     Tenant's equipment and improvements can be relocated to another position at
     the Property mutually acceptable to Tenant and Landlord.  Tenant shall be
     entitled only to that portion of the proceeds of condemnation which is
     directly attributable to the value of Tenant's equipment and improvements,
     and the cost of relocation, and under no circumstances shall Tenant receive
     any compensation for the value of the leasehold estate created by this Site
     Lease.

11.  Relocation of System by Landlord.  Upon not less than thirty (30) days
     advance written notice to Tenant from Landlord, Landlord may, at Landlord's
     expense, relocate Tenant's Communications Site to another location on the
     roof of the Building if Landlord, in its good faith judgment, deems such
     relocation necessary; provided, however, that Landlord may not do so if the
     result of the relocation would cause Tenant to lose, or experience
     degraded, transmission or reception.

                                      N-3
<PAGE>

12.  Access by Landlord.  Landlord shall have access to the Roof Premises at all
     times, and Landlord agrees to give Tenant such notice as is reasonable
     under the circumstances.

13.  Termination by Landlord.  Landlord may terminate this Lease upon the
     occurrence of any of the following: (a) the termination of the Office
     Lease; (b) failure by Tenant to comply with any material term, condition or
     covenant of this Site Lease, if such failure is not cured within thirty
     (30) days after written notice thereof to Tenant, or in the event of a cure
     which requires in excess of thirty (30) days to complete, if Tenant has not
     commenced such cure within thirty (30) days of such notice and is not
     diligently prosecuting said cure to completion; (c) if Tenant becomes
     insolvent, or makes a transfer in fraud of creditors, or makes an
     assignment for the benefit of creditors, or files a petition under any
     section or chapter of the federal Bankruptcy code, as amended, or under any
     similar law or statute of the United States or any state thereof, or is
     adjudged bankrupt or insolvent in proceedings filed against Tenant
     thereunder, or if a receiver or trustee is appointed for all or
     substantially all of the assets of Tenant due to Tenant's insolvency; or
     (d) during any Option Term, Landlord decides to demolish or reconfigure the
     Building in a manner that will impact the Roof Premises and provides Tenant
     with written notice of termination of this Lease at least twelve (12)
     months prior to the termination date.

14.  Termination by Tenant.  Tenant may terminate this Lease at any time upon
     thirty (30) days written notice to Landlord.

15.  Warranties and Covenants of Tenant.  Tenant warrants and covenants that
     throughout the term of this Site Lease, Tenant shall maintain comprehensive
     liability insurance, naming Landlord as an additional insured, protecting
     and indemnifying Landlord and Tenant against claims and liabilities for
     injury, damage to persons or property or for the loss of life or of
     property occurring upon the Roof Premises, Access Areas or other parts of
     Landlord's property resulting from Tenant's use of Landlord's property,
     including those resulting from any negligent act or omission of Tenant, its
     employees, agents, contractors, and subcontractors.  Such insurance shall
     afford minimum protection of not less than One Million Dollars ($1,000,000)
     for injury to or death of any one person, Three Million Dollars
     ($3,000,000) for injury to or death of two or more persons, One Million
     Dollars ($1,000,000) for property damage, and Five Million Dollars
     ($5,000,000) for excess liability in the form of umbrella liability
     coverage.  Tenant shall also maintain personal property insurance in an
     amount sufficient to fully protect all personal property, fixtures and
     tenant improvements constructed, owned or controlled by Tenant and brought
     upon Landlord's property from theft, fire or other loss or damage while
     upon the Property.  Tenant shall provide to Landlord a certificate
     indicating the applicable coverage prior to the Commencement Date of the
     Lease and as necessary throughout the term of the Lease to evidence to
     Landlord's satisfaction that coverage remains in full force and effect.
     All insurance shall be procured from insurance companies satisfactory to
     Landlord.  Tenant shall maintain the Roof Premises in a clean, safe and
     sanitary condition throughout the term of this Site Lease.

16.  Liability and Indemnification.  Tenant shall at all times comply with all
     laws and ordinances and all rules and regulations of municipal, state, and
     federal governmental authorities relating to the installation, maintenance,
     height, location, use, operation, and removal of improvements authorized
     herein, whether such laws, ordinances, rules and regulations are directed
     to Tenant or to Landlord, and shall fully indemnify Landlord against any
     loss, cost or expense which may be sustained or incurred by Landlord as a
     result of the installation, operation, maintenance or removal of such
     improvements, including but not limited to any damage to the roof of the
     Building, and any damage or injury to Landlord, Landlord's agents or
     employees, or other tenants or tenants' employees, agents or invitees of
     the Building caused by Tenant's operation of its Communications Site.
     Except for the negligent acts or willful misconduct of Landlord and
     Landlord's agents or employees, Landlord shall not be liable to Tenant for
     any loss or damages arising out of personal injuries or property damage on
     the Roof Premises or Access Areas.  Tenant shall be fully responsible for
     any radio signal or electrical interference that its equipment may cause
     with respect to any other radio or telecommunications system authorized or
     licensed by the Federal Communications Commission and existing on the
     Commencement Date or any date thereafter.

                                      N-4
<PAGE>

17.  Title To and Removal of Tenant's Equipment.  Title to Tenant's equipment,
     and all improvements installed at and affixed to the Roof Premises or the
     Property by Tenant shall be and shall remain the property of Tenant.
     Landlord hereby waives any lien rights it may have or acquire with respect
     to Tenant's property and shall promptly execute any document reasonably
     required by any supplier, lessor, or lender of such property which waives
     any rights Landlord may have or acquire with respect thereto.  Tenant may,
     at any time, including any time it vacates the Roof Premises, remove
     Tenant's improvements, equipment, fixtures, and all of Tenant's personal
     property from the Roof Premises, and Tenant shall promptly restore the
     property and repair any damage thereto caused by such removal.  Tenant
     shall remove any structural improvements installed to support Tenant's
     equipment upon Landlord's request to do so.  Any of Tenant's property
     remaining on the Roof Premises after the expiration or earlier termination
     of this Site Lease or after Tenant's vacation or abandonment of the Roof
     Premises ("Abandoned Property") will be deemed to have been abandoned and
     to have become the property of Landlord to dispose of at Landlord's
     discretion.  Tenant shall reimburse Landlord for any of Landlord's court
     costs, attorneys' fees, and storage charges related to Abandoned Property.
     Landlord may, at its option, sell Abandoned Property at private sale
     following written notice to Tenant thereof, for such price as Landlord may
     obtain, and apply the proceeds of such sale to any amounts due under this
     Site Lease from Tenant to Landlord, including expenses incident to the
     removal and sale of Abandoned Property, or Landlord may otherwise dispose
     of Abandoned Property.

18.  Surrender.  Upon termination of this Lease, Tenant shall remove the
     equipment and improvements installed at the Roof Premises by Tenant as set
     forth in paragraph 16.  Tenant shall repair and restore any damage to the
     Roof Premises caused by such removal, and shall surrender the Roof Premises
     in as good order and condition as when first occupied by Tenant, normal
     wear and tear and damage by fire or other casualty excepted.

19.  Assignment and Subletting.  Tenant's right to use the Roof Premises is
     personal to Tenant (or Tenant's successor-in-interest through merger), and
     Tenant may not assign this Site Lease or sublease all or any portion of the
     Roof Premises to a third party except as permitted by the terms of Section
     35 of the Lease.

20.  Tenant's Costs.  If Tenant fails to obtain all permits necessary for the
     construction of the Communications Site such that the term of this Site
     Lease never commences, Tenant shall pay to Landlord an amount equal to all
     costs incurred by Landlord for the preparation and negotiation of this Site
     Lease and all costs associated with Landlord's review of the plans and
     specifications for construction of Tenant's Communications Site on the Roof
     Premises.

21.  Notices and Other Communications.  Every notice required by this Lease
     shall be delivered either by (a) personal delivery, or (b) postage prepaid
     return receipt requested certified mail addressed to the party for whom
     intended at the addresses below or at such other address as the intended
     recipient shall have designated by written notice.

      If to Landlord:                        If to Tenant:

      Sterling Realty Organization Co.       iShip.com, Inc.
      600 - 106th Avenue N.E., Suite 200     3545 Factoria Boulevard, Suite_____
      Bellevue, Washington 98004             Bellevue, Washington 98006
      Attn:  David Schooler                  Attn:
                                                  ---------------------

22.  Mutual Release; Waivers of Subrogation.  Each party hereby releases the
     other and the other's officers, directors, partners, affiliates, agents and
     employees from liability or responsibility for any loss or damage to the
     extent resulting from any cause or hazard with respect to which insurance
     is carried pursuant to paragraph 15 of this Site Lease, including any loss
     or damage resulting from any loss of the use of any property.  These
     releases shall apply between the parties and they shall also apply to any
     claims under or through either party as a result of any asserted right of
     subrogation.  All policies of insurance obtained by

                                      N-5

<PAGE>

     either party pursuant to paragraph 15 of this Site Lease shall include a
     clause or endorsement waiving the insurer's right of subrogation against
     the other party.

23.  Hazardous Substances.  Tenant represents, warrants and agrees that Tenant
     will not use, generate, store or dispose of any Hazardous Material on,
     under, about or within the Property in violation of any law or regulation,
     or in any manner that would adversely affect Landlord's insurance coverage
     on the Property.  Tenant agrees to defend, indemnify and hold harmless
     Landlord and Landlord's officers, directors, partners, affiliates, agents
     and employees against any and all losses, liabilities, claims and/or costs
     (including reasonable attorneys' fees and costs) arising from any breach of
     any representation, warranty or agreement contained in this paragraph.  As
     used in this paragraph, "Hazardous Material" shall mean petroleum or any
     petroleum product, asbestos, any substance known by a department of the
     United States government or by the State of Washington to cause cancer
     and/or reproductive toxicity, and/or any substance, chemical or waste that
     is identified as hazardous, toxic or dangerous in any applicable federal,
     state or local law or regulation.  Landlord represents that, to the best of
     its knowledge as of the date of this Site Lease, there is no Hazardous
     Material on the Property in violation of any applicable law or regulation.

24.  Waivers.  Any waiver of any right under this Site Lease must be in writing
     and signed by the wavering party.

25.  Written Agreement to Govern.  This Site Lease is the entire understanding
     between the parties relating to the subjects it covers.  This Site Lease
     shall be governed by and construed in accordance with the laws of the State
     of Washington.

26.  Attorneys' Fees. The substantially prevailing party in any action or
     proceeding brought to enforce this Site Lease shall be entitled to recover
     its reasonable attorneys' fees, costs, and expenses in connection with such
     action or proceeding from the other party.

27.  Covenant of Cooperation.  Tenant agrees to cooperate with Landlord and
     other tenants of Landlord, as more specifically set forth in the Rules and
     Regulations of Site Lease, attached hereto as Exhibit D.
                                                   ---------

28.  Further Assurances.  In addition to the actions specifically mentioned in
     this Site Lease, the parties shall each do whatever may be reasonably
     necessary, without Landlord incurring any out-of-pocket costs, to
     accomplish the transactions contemplated in this Site Lease including,
     without limitation: execution of all applications, permits and approvals
     required of Landlord for construction of the Communications Site by Tenant;
     and cooperation in obtaining Non-Disturbance Agreements from holders of
     senior encumbrances on the Property, and execution of a Memorandum of Lease
     in the from attached as Exhibit E to this Lease.
                             ---------

29.  Execution of Lease by Landlord.  The submission of this document for
     examination and negotiation does not constitute an offer to lease, or a
     reservation of, or option for, the Roof Premises.  This document will
     become effective and binding only upon approval of this Site Lease by the
     party holding the deed of trust encumbering the Property, and upon the full
     execution of this Site Lease by Landlord and its delivery to Tenant.  No
     act or omission of any employee or agent of Landlord (or of Landlord's
     broker, if any) shall alter, change or modify any of the provisions hereof.

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

                         LANDLORD:

                         STERLING REALTY ORGANIZATION CO.,
                         a Washington corporation, its general partner

                         By:
                            ------------------------------------------
                                    David Schooler, President

                                      N-6
<PAGE>

                         TENANT:

                         iSHIP.COM, INC.
                         a Washington corporation

                         By:
                            ------------------------------------------
                         Its:
                            ------------------------------------------

STATE OF WASHINGTON   )
                      ) ss.
COUNTY OF KING        )

  THIS IS TO CERTIFY that on this ______ day of ________, 2000, before me, the
undersigned, a notary public in and for the State of Washington, duly
commissioned and sworn, personally appeared DAVID SCHOOLER, to me known to be
the President of STERLING REALTY ORGANIZATION CO., a Washington corporation, the
corporation that executed the within and foregoing instrument, and acknowledged
the said instrument to be the free and voluntary act and deed of said
corporation for the uses and purposes therein mentioned, and on oath stated that
he was authorized to execute said instrument.

  WITNESS my hand and official seal the day and year in this certificate first
above written.

                                          --------------------------------
                                          (Signature)

                                          --------------------------------
                                          (Please print name legibly)

                                          NOTARY PUBLIC in and for the State of
                                          Washington, residing at
                                                                 ---------------
                                          My commission expires
                                                               -----------------

                                      N-7
<PAGE>

STATE OF WASHINGTON  )
                     ) ss.
COUNTY OF KING       )

  THIS IS TO CERTIFY that on this _____ day of _______, 2000, before me, the
undersigned, a notary public in and for the State of Washington, duly
commissioned and sworn, personally appeared ___________________, to me known to
be the _______________ of iSHIP.COM, INC., a Washington corporation, the
corporation that executed the within and foregoing instrument, and acknowledged
the said instrument to be the free and voluntary act and deed of said
corporation  for the uses and purposes therein mentioned, and on oath stated
that _____ was authorized to execute said instrument.

  WITNESS my hand and official seal the day and year in this certificate first
above written.

                                    _____________________________________
                                    (Signature)

                                    _____________________________________
                                    (Please print name legibly)

                                    NOTARY PUBLIC in and for the State of
                                    Washington, residing at _____________
                                    My commission expires________________

                                      N-8
<PAGE>

                              SCHEDULE OF EXHIBITS

Exhibit A  Legal Description of the Property

Exhibit B  Sketch of the Roof Premises (50% of Usable Area of Roof)

Exhibit C  Sketch of the Roof Premises (25% of Usable Area of Roof)

Exhibit D  Rules and Regulations of Site Lease

Exhibit E  Memorandum of Site Lease

                                      N-9
<PAGE>

                                   EXHIBIT A
                                       TO
                           COMMUNICATIONS SITE LEASE

                         Legal Description of Property
                         -----------------------------

New Lot 2
---------

A portion of Lot 1 of Short Plat No. 280070R, according to the short plat
recorded under King County Recording No. 8011200686, being a revision of short
plat recorded under Recording No. 8009300879.

TOGETHER with that portion of the vacated portion of SE 38th Street lying with
the projected lot lines of the property herein described as vacated by King
County Ordinance No. 6582 as recorded under King County Recording No. 84030789;

TOGETHER with a portion of Parcels C, D, E & F of King County Lot Line
Adjustment No. LLA 8810004, according to the Lot Line adjustment recorded under
King County Recording No. 9101239007, being a portion of the West  1/2 of the
Southeast  1/4 of Section 9, Township 24 North, Range 5 East, W.M., described as
follows:

Commencing at the Northeast corner of the Southwest 1/4, of the Southeast 1/4
said Section 9; thence North 87 degrees 23' 26" West along the North line of
said Southwest 1/4 of the Southeast 1/4, a distance of 180.00 feet to the TRUE
POINT OF BEGINNING; thence South 01 degree 18'37" West, a distance of 158.87
feet; thence North 87 degrees 23'26" West, a distance of 437.33 feet; thence
South 01 degree 15'22" West, a distance 316.89 feet more or less to the
Northerly margin of SE 38th Street; thence North 63 degrees 38'11" West along
said Northerly margin, a distance of 90.75 feet; thence North 01 degree 15'16"
East, a distance of 439.20 feet; North 01 degree 12'48" East a distance of
14.22 feet; thence South 87 degrees 23'26" East, a distance of 321.85 feet;
thence North 02 degrees 36'31" East, a distance of 3.78 feet; thence South 87
degrees 23'26" East, a distance of 197.79 feet; thence South 01 degree 18'37"
West, a distance of 18.00 feet more or less to the POINT OF BEGINNING.

ALSO known as New Lot 2 of Boundary Line Adjustment No. BLA-995313, recorded
under King County Recording No. 20000228900003.

SITUATE IN THE CITY OF BELLEVUE, COUNTY OF KING, STATE OF WASHINGTON.

                                     N-10
<PAGE>

                                   EXHIBIT B
                                       TO
                           COMMUNICATIONS SITE LEASE

                 Sketch of the Roof Premises (50% of Roof Area)
                 ----------------------------------------------

                                     N-11
<PAGE>

                                   EXHIBIT C
                                       TO
                           COMMUNICATIONS SITE LEASE

                 Sketch of the Roof Premises (25% of Roof Area)
                 ----------------------------------------------

                                     N-12
<PAGE>

                                   EXHIBIT D
                                       TO
                           COMMUNICATIONS SITE LEASE

                         Rules and Regulations of Lease
                         ------------------------------

Tenant recognizes that other tenants will be leasing antenna and equipment space
from Landlord, and that effective use of the Property requires cooperation and
good faith between itself, other tenants, and Landlord.  Therefore, to avoid
objectionable interference, engage in proper Telecommunications Activity, and
facilitate the purposes of all leases, Tenant shall adhere to the following
Rules and Regulations, which Landlord may modify from time to time upon advance
notice to Tenant.

1.  Definitions.

    a)   Responsible Tenant:  Means the tenant responsible for correcting
         objectionable interference.

    b)   Telecommunications Activity:  Means the conduct of transmissions
         (e.g., Amplitude modulated aural transmission or frequency modulated
         aural or visual transmission) from the Property upon a single
         frequency at any one time assigned to a tenant by the Federal
         Communications Commission ("FCC").  If a tenant conducts the same type
         of transmission on two or more assigned frequencies, each of them
         shall constitute a separate Telecommunication Activity.

    c)   Transmission:  Means the emission or reception of electromagnetic
         waves.

2.   Plans For Telecommunications Activity.  Prior to making any installations
     or material modifications of a Telecommunication Activity, every tenant
     shall submit plans and designs to Landlord.  Landlord shall have twenty
     (20) days thereafter to approve or disapprove the plans and designs, based
     on the effect the installation may have on the Property and its structural
     components and the potential for objectionable interference.

3.   Testing Required Prior to Installation.  Prior to the installation of any
     equipment required for a Telecommunication Activity, Tenant, at its
     expense, shall conduct all tests that Landlord deems reasonably appropriate
     or necessary to determine that Tenant's proposed Telecommunication Activity
     can be conducted without causing objectionable interference to any
     Telecommunication Activity then being conducted by another tenant.  The
     tests conducted shall be of the type then generally recognized as
     appropriate for such purposes.  Following receipt by Landlord of acceptable
     test results, Tenant shall coordinate with Landlord as to the exact time of
     installation of the equipment required for the approved Telecommunication
     Activity.  Tenant agrees that only authorized engineers, employees, or
     contractors, as reasonably selected by Tenant, will be permitted to enter
     the Property for the purpose of installing, modifying, or maintaining
     Tenant's facilities.  Tenant further agrees that all engineers,
     contractors, or subcontractors hired by Tenant for the purpose of
     installing any equipment on the Property will by duly licensed in the State
     of Washington and approved by Landlord, which approval shall not be
     unreasonably withheld.

4.   Subsequent Modifications to Telecommunication Activity.  All modifications
     or subsequent changes in Tenant's Telecommunication Activity shall be
     subject to provisions of paragraphs 2 and 3.

5.   Objectionable Interference.  Objectionable interference to a
     Telecommunication Activity may be caused by:

     a) Initiation of a Telecommunication Activity, or the installation of
        equipment in preparation for the initiation of a Telecommunication
        Activity, without first complying with the provisions of paragraphs 2
        and 3 above. With respect to the initial operation of a
        Telecommunication Activity, that activity may constitute objectionable
        interference even if such interference is not discovered

                                     N-13

<PAGE>

        until after a tenant's Telecommunication Activity is initiated. This
        shall be referred to as Type 1 interference.

    b)  The failure by Tenant to maintain its equipment properly, to replace
        defective equipment, or to operate its Telecommunication Activity in
        accordance with good engineering practices. This shall be referred to as
        Type 2 interference.

6.   Notice Of Need For Corrective Action.  If Tenant is of the opinion that
     there is objectionable interference to its Telecommunications Activity, and
     that another tenant is under obligation to correct said interference, it
     may, without prejudice to its other remedies, give written notice to
     Landlord and the Responsible Tenant(s).  The Responsible Tenant shall,
     within three (3) days of receiving such notice (or such longer period as
     consented to in writing by Tenant), comply with the provisions set forth
     herein regarding corrective action for objectionable interference. If the
     Responsible Tenant fails to respond as required, then the rights granted by
     Landlord to the Responsible Tenant shall terminate as to the interfering
     Telecommunication Activity.

7.   Corrective Action.  If objectionable interference results from either Type
     1 or Type 2 interference, then the Responsible Tenant shall take all
     necessary corrective actions to eliminate the objectionable interference.
     If objectionable interference arises with Telecommunication Activity
     initiated in accordance with the Responsible Tenant's lease and these
     Results and Regulations, the Responsible Tenant shall:

       a) Immediately discontinue the interfering activity until such
          interference can be fully corrected; or

       b) Transfer its Telecommunication Activity to a temporary location and/or
          equipment operating configuration if objectionable interference will
          be eliminated by doing so.

     Whenever a Responsible Tenant discontinues a Telecommunication Activity or
     transfers to a temporary location pursuant to this paragraph, it shall not
     resume such Telecommunication Activity or transfer such Telecommunication
     Activity from the temporary location to its previous, permanent location
     until it fully complies with the conditions provided for engaging in the
     initial operation of a Telecommunication Activity.

8.   Protective Devices.  Tenant may request that Landlord, at Tenant's expense,
     attach protective devices to the equipment of other tenants.  Tenant agrees
     that other tenants may, upon written approval of Tenant, which approval
     shall not be unreasonably withheld, attach protective devices to Tenant's
     equipment, provided that no objectionable interference occurs in the
     conduct or use of any of Tenant's equipment or Telecommunication Activity.
     The tenant attaching such equipment shall promptly have such protective
     devices removed if objectionable interference results at any time.

9.   FCC Hearings.  Nothing herein shall be deemed to limit the right of Tenant
     to request hearings before the FCC, or to appear before the FCC in any
     hearings held in such proceedings, or to oppose any application to the FCC
     filed by any other tenant as a result of such proceedings.

10.  Compliance with FCC Rules and Regulations.  If Tenant's operations or
     Telecommunication Activities fail to comply with FCC rules and regulations,
     and objectionable interference arises because of such noncompliance, then
     Tenant shall not be entitled to the protection of these Rules and
     Regulations regarding objectionable interference, until it fully complies
     with FCC standards.

11.  Good Faith Conduct.  Tenant shall conduct its Telecommunications Activity
     in good faith and in accordance with the purposes and intent of its lease
     for a portion of the Property. Tenant shall cooperate with other tenants to
     anticipate and prevent objectionable interference.

12.  Interference with Third Parties.  In the event a tenant's Telecommunication
     Activities result in interference with transmission or reception of signals
     or other services or activities by a party other than tenant, and if a
     legal obligation exists to correct such interference, then the
     responsibility for and expense of correcting such interference with be
     borne by the tenant or tenants involved, in accordance with principles
     established herein for corrective action.

                                     N-14
<PAGE>

                                   EXHIBIT E
                                       TO
                           COMMUNICATIONS SITE LEASE

                              Memorandum of Lease
                              -------------------

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

GRAHAM & DUNN
1420 Fifth Avenue, 33rd Floor
Seattle, Washington  98101
Attn:  Maren K. Gaylor

                    MEMORANDUM OF COMMUNICATIONS SITE LEASE

GRANTOR:             Sterling Realty Organization Co., a Washington corporation

GRANTEE:             iShip.com, Inc., a Washington corporation

LEGAL DESCRIPTION:   New Lot 2 of Boundary Line Adjustment No. BLA-995313,
                     recorded under King County Recording No. 20000228900003.

TAX PARCEL
IDENTIFICATION NO.:
                     ------------------------------------

THIS MEMORANDUM OF COMMUNICATIONS SITE LEASE is made and entered into as of this
7th day of March, 2000, by and between STERLING REALTY ORGANIZATION CO., a
Washington corporation ("Landlord"), and iSHIP.COM, INC., a Washington
corporation ("Tenant").

                                    RECITALS

1.   Property Affected by Agreement.  Tenant, in connection with that certain
     ------------------------------
     Lease Agreement dated March 7, 2000, between Landlord and Tenant (the
     "Lease Agreement"), has the right to the exclusive use of a portion of the
     roof of the building to be located at 3545 Factoria Boulevard S.E. in
     Bellevue, King County, Washington (the "Property").  A legal description of
     the Property is attached to this Memorandum as Exhibit A.
                                                    ---------

2.   Term of Communications Site Lease.  The Communications Site Lease shall
     ---------------------------------
     have a term concurrent with the Lease Agreement.

4.   Purpose of Memorandum.  This Memorandum is prepared for the purpose of
     ---------------------
     recordation to give notice of the Communications Site Lease, Agreement,
     including the option to purchase the Property contained therein, and shall
     not constitute an amendment or modification of the Agreement.

                                     N-15
<PAGE>

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

                              LANDLORD:

                              STERLING REALTY ORGANIZATION CO.,
                              a Washington corporation

                              By:
                                 ------------------------------
                                 David Schooler, President

                              TENANT:

                              iSHIP.COM, INC., a Washington corporation

                              By:
                                 --------------------------------
                                 Its:
                                     ----------------------------

STATE OF WASHINGTON   )
                      ) ss.
COUNTY OF KING        )

  THIS IS TO CERTIFY that on this ______ day of ______, 2000, before me, the
undersigned, a notary public in and for the State of Washington, duly
commissioned and sworn, personally appeared DAVID SCHOOLER, to me known to be
the President of STERLING REALTY ORGANIZATION CO., a Washington corporation, the
corporation that executed the within and foregoing instrument, and acknowledged
the said instrument to be the free and voluntary act and deed of said
corporation for the uses and purposes therein mentioned, and on oath stated that
he was authorized to execute said instrument.

  WITNESS my hand and official seal the day and year in this certificate first
above written.

                               -----------------------------------
                               (Signature)

                               -----------------------------------
                               (Please print name legibly)

                               NOTARY PUBLIC in and for the State of
                               Washington, residing at_____________
                               My commission expires_______________

                                     N-16
<PAGE>

STATE OF WASHINGTON  )
                     ) ss.
COUNTY OF KING       )

  THIS IS TO CERTIFY that on this _____ day of ______, 2000, before me, the
undersigned, a notary public in and for the State of Washington, duly
commissioned and sworn, personally appeared _____________________________, to me
known to be the _____________________ of iSHIP.COM, INC., a Washington
corporation,  the corporation that executed the within and foregoing instrument,
and acknowledged the said instrument to be the free and voluntary act and deed
of said corporation  for the uses and purposes therein mentioned, and on oath
stated that _____ was authorized to execute said instrument.

  WITNESS my hand and official seal the day and year in this certificate first
above written.

                               ------------------------------------------
                               (Signature)

                               ------------------------------------------
                               (Please print name legibly)

                               NOTARY PUBLIC in and for the State of
                               Washington, residing at _________________
                               My commission expires ___________________

                                     N-17
<PAGE>

                                   EXHIBIT A
                                       TO
                              MEMORANDUM OF OPTION

                         Legal Description of Property
                         -----------------------------

New Lot 2
---------

A portion of Lot 1 of Short Plat No. 280070R, according to the short plat
recorded under King County Recording No. 8011200686, being a revision of short
plat recorded under Recording No. 8009300879.

TOGETHER with that portion of the vacated portion of SE 38th Street lying with
the projected lot lines of the property herein described as vacated by King
County Ordinance No. 6582 as recorded under King County Recording No. 84030789;

TOGETHER with a portion of Parcels C, D, E & F of King County Lot Line
Adjustment No. LLA 8810004, according to the Lot Line adjustment recorded under
King County Recording No. 9101239007, being a portion of the West  1/2 of the
Southeast  1/4 of Section 9, Township 24 North, Range 5 East, W.M., described as
follows:

Commencing at the Northeast corner of the Southwest 1/4, of the Southeast 1/4
said Section 9; thence North 87 degrees 23' 26" West along the North line of
said Southwest 1/4 of the Southeast 1/4, a distance of 180.00 feet to the TRUE
POINT OF BEGINNING; thence South 01 degree 18'37" West, a distance of 158.87
feet; thence North 87 degrees 23'26" West, a distance of 437.33 feet; thence
South 01 degree 15'22" West, a distance 316.89 feet more or less to the
Northerly margin of SE 38th Street; thence North 63 degrees 38'11" West along
said Northerly margin, a distance of 90.75 feet; thence North 01 degree 15'16"
East, a distance of 439.20 feet; North 01 degree 12'48" East a distance of
14.22 feet; thence South 87 degrees 23'26" East, a distance of 321.85 feet;
thence North 02 degrees 36'31" East, a distance of 3.78 feet; thence South 87
degrees 23'26" East, a distance of 197.79 feet; thence South 01 degree 18'37"
West, a distance of 18.00 feet more or less to the POINT OF BEGINNING.

ALSO known as New Lot 2 of Boundary Line Adjustment No. BLA-995313, recorded
under King County Recording No. 20000228900003.

SITUATE IN THE CITY OF BELLEVUE, COUNTY OF KING, STATE OF WASHINGTON.

                                     N-18
<PAGE>

                                   EXHIBIT O
                                       TO
                                LEASE AGREEMENT

                      Certificate of Corporate Resolution
                      -----------------------------------

     I, ___________________, hereby certify that I am the duly elected,
qualified, and acting Secretary of iShip.com, Inc., a corporation duly organized
under the laws of the state of Washington (the "Corporation").  I further
certify that on the _____ day of ___________, 2000, the following resolution was
duly adopted by the directors of the Corporation, and that the resolution is now
in full force and effect and has not been altered, amended, modified or
repealed:

     RESOLVED, that ____________________, the ________________ of the
     Corporation, or ______________, the ______________ of the Corporation, are
     hereby each individually authorized to sign the Lease Agreement between the
     Corporation and Sterling Realty Organization Co. (the "Landlord") dated
     _________________ with respect to Premises identified as Suite ______ of
     the building located at 3545 Factoria Boulevard S.E., Bellevue, Washington,
     and after its execution and delivery by the Corporation and the Landlord,
     the Lease will be a binding and enforceable obligation of the Corporation
     in accordance with its terms.

     I hereby certify that: (1) the above Resolution was duly passed at a
special and/or general meeting of the Board of Directors of the Corporation held
on ___________________ at which were present and voting a majority of the
directors; (2) the above Resolution has been duly recorded in the minute book of
the Corporation; (3) there are no provisions in the Articles of Incorporation or
Bylaws of the Corporation that would impair or modify the effectiveness of the
above Resolution; (4) the Resolution has not been altered or amended subsequent
to its adoption; and (5) said Resolution is now in full force and effect.

     WITNESS MY HAND this _______ day of _____________, 2000.

                              ________________________________

                              By:
                                 -----------------------------

                                      O-1
<PAGE>

                                LEASE AGREEMENT

                              Dated March 7, 2000

                                    between

                       STERLING REALTY ORGANIZATION CO.

                                 as "Landlord"

                                      and

                                iSHIP.COM, INC.

                                  as "Tenant"

                                      in

                               STERLING PLAZA II
<PAGE>

                         STANDARD TERMS AND CONDITIONS

<TABLE>
                                       LEASE PROVISIONS
            <S>                                                                           <C>
              1.   Lease Provisions and Exhibits........................................    1

                                     GENERAL TERMS AND CONDITIONS

              2.   Premises.............................................................    6
              3.   Term.................................................................    6
              4.   Rent.................................................................    6
              5.   Notices..............................................................    6
              6.   Uses.................................................................    7
              7.   Services and Utilities...............................................    6
              8.   Costs of Services and Utilities......................................    8
              9.   Property Taxes.......................................................   10
             10.   Taxes on Rents and Personal Property.................................   10
             11.   Acceptance of Premises...............................................   10
             12.   Improvements.........................................................   10
             13.   Alterations and Care of Premises.....................................   11
             14.   Liens and Insolvency.................................................   13
             15.   Access...............................................................   13
             16.   Damage or Destruction................................................   13
             17.   Indemnification, Insurance and Waiver of Subrogation.................   14
             18.   Assignment and Subletting............................................   16
             19.   Holdover.............................................................   17
             20.   Surrender of Premises................................................   17
             21.   Removal of Property..................................................   17
             22.   Defaults.............................................................   18
             23.   Right to Perform.....................................................   19
             24.   Nonwaiver............................................................   19
             25.   Costs and Attorneys' Fees............................................   19
             26.   Priority.............................................................   19
             27.   Estoppel Certificates................................................   20
             28.   Transfer of Landlord's Interest......................................   20
             29.   Condemnation.........................................................   20
             30.   Advertising..........................................................   20
             31.   Exterior Signage.....................................................   21
             32.   Parking..............................................................   21
             33.   Tenant Improvements..................................................   21
             34.   Main Lobby and Common Areas of Building..............................   23
             35.   Installation of Satellite Dishes on Roof of Building.................   23
             36.   Fifth Floor Hold Period..............................................   23
             37.   Terms Applicable to Expansion of Premises During Initial 12 Months...   23
             38.   Tenant's Right of First Offer........................................   23
             39.   Option to Cancel Lease...............................................   24
             40.   Delay in Lease Commencement; Additional Option to Cancel Lease.......   25
             41.   Americans With Disabilities Act (ADA) Compliance.....................   25
             42.   Hazardous Materials..................................................   26
             43.   Arbitration..........................................................   27
             44.   Quiet Enjoyment......................................................   28
             45.   Execution of Lease by Landlord.......................................   28
             46.   Landlord's Liability.................................................   28
             47.   Brokers..............................................................   28
             48.   Corporate Authority..................................................   28
             49.   General Provisions...................................................   28

</TABLE>

<PAGE>

                                    EXHIBITS
<TABLE>
<CAPTION>

<S>            <C>                                                                               <C>
Exhibit A      Legal Description of Land......................................................   A-1
Exhibit B      Legal Description of Project...................................................   B-1
Exhibit C      Plan of the Premises...........................................................   C-1
Exhibit D      Shell and Core Items for Building/List of Plans and Specifications for Building   D-1
Exhibit E      Scope of Tenant Improvements...................................................   E-1
Exhibit F      Form of Letter of Credit.......................................................   F-1
Exhibit G      Form of Guaranty of Lease......................................................   G-1
Exhibit H      Rules and Regulations..........................................................   H-1
Exhibit I      Exclusions from Operating Costs................................................   I-1
Exhibit J      Form of Subordination, Attornment, Notice and Non-Disturbance Agreement........   J-1
Exhibit K      Parking Plan...................................................................   K-1
Exhibit L      Form of Tenant Improvement Promissory Note.....................................   L-1
Exhibit M      Sketches Showing Area of Roof Designated for Tenant's Exclusive Use............   M-1
Exhibit N      Form of Communications Site Lease..............................................   N-1
Exhibit O      Certificate of Corporate Resolution of Tenant..................................   O-1
</TABLE>

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